Your decision to buy a home will have a major impact on every area of your finances—including your credit store. But according to a recent study from LendingTree, buying a home has less of an impact on your credit than you’d think.
According to the study, in the four to six months following a mortgage, credit scores, on average, aren’t likely to fall more than 20 points on average. And even if your score does drop more than 20 points, it will typically bounce back to pre-mortgage levels within a year.
The Takeaway:
So, what does this mean for you? If you’re thinking about buying a home—but are feeling a bit nervous about how the mortgage will impact your credit—rest easy. Taking out a mortgage shouldn’t impact your credit too much—and even if you see a drop, your score should bounce back fairly quickly.
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