Few things are more important than your credit history when it comes time to purchase your new home. Your credit score isn’t just a number; it paints a full financial picture. We’ve mapped out a guide to understanding your credit during the mortgage process and how to start planning for successful homeownership today.
Credit scores fall within a range from 300 to 900. Your credit score directly influences which programs you qualify for and subsequent loan rates. Individuals with higher scores face fewer limits during the mortgage process and sometimes the cost of private mortgage insurance.
Scores of 780 or higher are desirable to most creditors and receive the best possible rates. Borrowers with scores between 720 and 780 also receive lower interest rates and are considered excellent candidates in the eyes of lenders. Scores within the 660 and 719 range are respectable as well and qualify for most loans; however, these individuals face higher rates.
Any score below 660 will limit you to a select few programs and while offering higher consumer rates. People with a credit score of 580 or below risk the chance of not being approved for a loan. If they are approved, they’ll most likely encounter extreme rates.
Though your credit score is not the only determining factor, a Loan Office at Assurance Financial is ready to help work with you to determine which loans are available. Whether you are a First Time Home Buyer, a Veteran or looking for a USDA Rural Loan, we’re here to help. Find a loan officer near you and see how our home loan experts can help you today!