Chris Milbrath, Elevations Credit Union

Chris Milbrath, Elevations Credit Union

LONGMONT – When you apply for a mortgage loan, you should have a good understanding of your credit score. This score is based on how long you’ve been using credit, the kinds of credit you’ve used, how you’ve handled payments, and how you’re currently using credit.

You need to have some form of credit in order to purchase a home. Building credit is different for everyone, but one recommendation to start with is to get a secured credit card. These cards require you to make a refundable deposit. Make sure your card issuer reports your account activity to the credit bureaus so you can build your history and show you’re a responsible borrower.

With a higher (better) credit score, the lender has lower risk, so you’ll get a lower rate on your mortgage loan. A small change in your credit score, from three to five points, can make a difference in your mortgage rate if you’re close enough to tip into higher or lower credit score bucket. Take a look at the ranges below and determine whether this might affect you:

• Exceptional Credit: 800+
Very Good Credit: 740-799
• Good Credit: 670-739
• Fair Credit: 580-669
• Poor Credit: below 579

For more on this subject, visit the Elevations Blog at

Chris Milbrath is a Mortgage Loan Originator at Elevations Credit Union in Longmont. If you have questions regarding mortgages, please call 720.652.7109 or e-mail [email protected].

By Chris Milbrath, Elevations Credit Union