Credit scores.  Can’t understand them, but without a good one – or lots of cash – buying a house is not attainable.

Without a good credit score, the best interest rates aren’t available to you.

Without the best interest rates available to you, homes at good values rapidly become unaffordable.

A while ago, Marianne Lane gave us a two-part series on credit scores.  I was cleaning some things up yesterday, and came across a visual of how a credit score is actually determined, and I thought this might be even more helpful.

Clear as mud, right?

Two quick points that I’ve noticed – (1) it seems that lenders are really looking at borrowers with 620 credit scores and higher, and (2) pay down any open accounts (credit cards, etc.) that you can, but don’t necessarily close them.  Your lender can help you with this as well.