Looking to improve your credit score and buy a home? Here's what you can do
BOSTON – When it comes to owning a home, having a good credit score is key. Sometimes, the score you think you have might be different from the ones lenders are using.
WBZ-TV worked with a credit expert to help a mother of four turn her credit around so she can buy her dream home.
Nadia Tennyson has one goal in mind.
"I'm a single mom with four boys, just trying to make a different life for my kids," Tennyson said.
She's stocking away the tips she earns as a bartender to save money to buy her first home.
The process has not been easy.
"My first thing is like where do I start?" Tennyson said.
This is where Al Bingham came in. Bingham is a nationally known credit score expert and loan officer.
"People need to know the real credit scores their scores that lenders use," said Bingham when asked what potential homeowners should be aware of to start the process.
Bingham said the score you're pulling on your own is most likely not the one a lender will use to determine how much they're willing to loan you.
"A lot of times they have a credit score, say a 760 credit score, and all too often they find out the credit score is 710-720. There's a 30, 40, 50-point difference. Well, that difference is huge," Bingham said.
Those extra points can mean tens-of-thousands of dollars in purchasing power when you're looking at homes.
Bingham sat down with Tennyson to show her the score lenders will use.
"I would love to be in the 700s," Tennyson said to Bingham.
She's got some work to do to get there, but Bingham suggested four steps that will help just about anyone bump up their score.
"If you go after those four things, your scores will go up exponentially," Bingham told WBZ.
Now as Tennyson works toward homeownership, she feels more prepared.
"I appreciate the fact that now I know what I need to do to be able to purchase my home. Once I do it, I'm going to thank you all," she said.
Bingham told WBZ-TV he will take the next 5-6 months to work with Tennyson to improve her credit score.
