Home prices are down and mortgage rates have gone down; this is best time to purchase a home but for most people this is not the prime time to buy a home. With a higher down payment and good credit score buyers are capable of getting lower mortgage rates. The new credit score rules requires banks to disclose to consumers why they are denied credit and the interest rate they will be charged.

The median FICO score for most borrowers is 711, approval for credit if your score is less than 680 is tough. Refinancing your home also requires higher credit scores in order to qualify, RBS states that only 12 percent applying for refinancing qualify. Education and monitoring your credit scores is vital and mistakes like closing an unused credit card may lower credit scores.