If you are thinking about buying a home in '08, you need to be be aware of the new credit score changes, because it will effect how much you pay for your mortgage. According to this article in the Wall Street Journal, "The company that cooks up credit scores for millions of Americans is changing its recipe -- and that could affect how easily you get credit in the future."

Generally the higher your credit score, the better the interest rate, allowing you to receive a smaller mortgage payment or purchase a more expensive home. The difference between a 620 score and a 660 score can mean the difference of a 1%, which on a $200,000 home loan can mean over $100 per month over 30 years, or a whopping $36,000.

If you have had some credit challenges, it can also mean the difference between getting a loan and not. For many first time home buyers, the FHA loan is a popular choice because of its low down payment and low interest rate, but many lenders require a minimum score of 580. You may qualify for that today, but with the changes to the credit scoring system, that could change. If you are unsure what you score is, have it checked out at Equifax Credit. If you want to raise your score, check out Veracity Credit Optimization, a company that many mortgage companies refer clients too.