Skip To Content

Things You Should Know About Your Credit Before Buying a Home in Albuquerque

When you buy a home in Albuquerque, or anywhere for that matter, your credit score makes a huge difference. There’s just no getting around that fact.

This score is used by lenders to determine how much they can trust you to make your payments. this score can either save or cost you thousands of dollars when buying a home.

How much can this score impact you and what are the details behind this score?

How Your Score is Calculated

Your FICO credit score is comprised of five elements.

  1. How you pay your bills makes up 35% of this score. Paying on time adds points. Late payments take points away. Since this makes up a large portion of your score, make sure you pay bills on time.
  2. 30% of your score is based on your credit utilization ratio. This means how much you owe as part of the amount of credit you have available. The lower this ratio, the better.
  3. 15% is based on the length of your credit history. When did you open your first account (and is it still open)?
  4. 10% of your score goes to the type of credit you have such as credit cards or car loans and mortgages.
  5. The last 10% is impacted by new credit applications. How often and for what types of credit are you applying?

Where to Find Your Score and Report

There are many websites that offer credit scores, but the best ones that offer them for free are or

Make sure you check those reports for fraud or bad information. Contact both credit reporting agencies and the company reporting inaccurate information if you find anything incorrect.

How Your Score Can Cost You

Credit scores range from 300 to 850. There can be varying determinations of what is considered good or excellent credit. Generally you want a score higher than 720 to be considered “excellent.”

The higher your credit score, the more creditworthy you appear to lenders, which translates into lower interest rates and more money saved when taking out a loan.

Having a solid credit score is one of the most financially savvy tools for you to have on hand when it comes to buying a home in Albuquerque. When managed wisely, your credit score will bring you confidence, peace of mind, and more money saved via low interest rates.

When mismanaged or not cared for at all, your credit score can delay your success in meeting financial goals and result in additional funds and resources spent correcting past mistakes.


6424 PRAIRIE Road NE, Albuquerque, NM 87109

Welcome to this well maintained 2 bd | 2 ba Townhouse in the sought after NE Heights. Master bedroom has his/hers separate bathrooms and walk-in closets. NEW CARPETS, FRESH PAINT (10/2021), NEW WATER HEATER (2021), NEW A/C (REF AIR), NEW HEATER (6/2021), NEW TPO ROOF (2016), NEW SKYLIGHTS (2020). The Murphy bed in 2nd bedroom makes space for a great office. Home also has a detached hobby room. Low-maintenance, private backyard with access to a roof deck! Schedule a showing today!

Learn More!

Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.

Get your Morning Inspiration with the Sandi Pressley Team

Trackback from your site.

Sandi Pressley

Albuquerque New Mexico Real Estate YOUR SOURCE FOR ALBUQUERQUE REAL ESTATE! Sandi Pressley offers unparalleled service to ALL clients in Albuquerque and surrounding communities in the New Mexico real estate market. Sandi's motto is "Putting You First." Your complete satisfaction with our service and representation is our number one priority. As a native of Albuquerque, Sandi Pressley has been dedicated to serving her client's real estate needs for over 45 years. Sandi has achieved a goal unprecedented by any other Realtor of being the #1 Top Producing Realtor for 38 consecutive years in all of Albuquerque as well as the entire state of New Mexico. She is also the #1 Top Producing Realtor for the entire Western Region and 8th in the Nation with Coldwell Banker National. Sandi Pressley serves the entire Albuquerque New Mexico real estate market including the surrounding communities such as Rio Rancho, Placitas, Corrales, Bernalillo, Northeast Heights, North Albuquerque Acres, Sandia Heights, High Desert, Foothills, Four Hills, UNM, Nob Hill, Ridgecrest area, Uptown area, North Valley, Northwest Heights, Paradise Hills, South Valley, Southwest Heights, Bosque Farms, Los Lunas, Cedar Crest, Tijeras, and all East Mountain areas. Whether you are considering buying a home, selling a home or both, we know these areas inside and out.

Leave a Reply