Those who are looking to buy homes in New Jersey will likely need to borrow money to do so. A buyer’s credit score will be one of the most important factors that a lender will evaluate when reviewing a loan application. To get the best loan terms, an individual should have a credit score of at least 680. However, it may be possible to get a traditional mortgage with a score of 650 and an FHA loan with a score as low as 500.

A credit score is based on a number of factors, including the amount of debt a person has or the amount of available credit an individual is currently using. In many cases, late or missed payments can cause a credit score to go down. Those who are looking to increase their scores before applying for a mortgage are encouraged to get current on all of their existing accounts.

It can also be a good idea to pay down credit card balances and avoid opening any new lines of credit. As a general rule, a new hard inquiry can have a temporary adverse impact on a credit score. In most cases, it will take about three to six months to see a score go up in a meaningful way. This is partially because information is only reported to the credit bureaus on a monthly basis.

A person who is looking to buy a house may have questions about obtaining a home loan or how to ensure that a property is in acceptable condition. A real estate law professional may be able to answer these and any other questions a buyer has. An attorney may also go over mortgage or purchase documents to ensure that an individual understands what he or she is agreeing to.