Hi — If you are home shopping and looking at mortgage loans, you’re probably realizing the importance of your credit score. This video talks about how credit score influence the mortgage rate you’ll qualify for. To see today’s interest rate and the pros and cons of each type of mortgage loan, check out our website: www.MeetMeInThePanhandle.com/mortgages
When you start home shopping and look i look into getting a mortgage the importance of a good credit score becomes very apparent and there are other considerations that lenders use to qualify you for a mortgage loan but your credit score has the most effect on the interest rate you’ll be able to get so today i’m going to talk about how credit score affects your
Mortgage rate how credit scores are split into different brackets and labeled the scores required for different types of loans and some ideas to raise your credit score i’m jana classy and my husband and i are realtors uh here in the eastern panhandle so uh your credit score good credit reassures lenders that they will be paid back and your score is calculated
Most often from the fico scoring model and that’ll include a history of your payment habits with borrowed money and each lender sets their own standards for um what rate they’ll apply to a particular credit score and that’s why it’s a good idea to shop around for a lender but generally the lowest rates go with a credit score of about 700 or above and as a rule the
Rate adjusts each time a credit score moves up or down by about 20 points so for example if your score drops to 680 from 700 you’ll likely see a small bump in your interest rate which means your payment will be slightly higher with that drop in your credit score and here’s the breakdown of how different scores are labeled a a score of 740 or higher is considered
Excellent 700 to 739 is good 6 30 to 6 99 is fair and then below 6 29 is considered poor credit and the four types of mortgage loans uh conventional fha usda va they all require different qualifying credit scores government-backed loans like fha us d.a and va will work with lower credit scores but the loan fees are going to be more expensive fha loans are the
Least restrictive on credit scores they could work for people with a score as low as 600 depending on the lender va usda loans usually look for at least a 640 score and conventional loans place the most importance on credit score so they’ll require a higher credit score as a rule and here’s some ways to improve your credit score first check for any errors on
Your credit report and work toward fixing them of course make your payments on time and don’t let your credit card balance go above 30 percent of your limit and then when you do shop around for a mortgage do it within a short period of time uh no more than 30 days because too many spread out inquiries can lower your score so working on your credit score is a
Good idea but if you want to buy a house and right now you have a score that will qualify you to get a mortgage loan then i would go ahead and take advantage of the current low rates rather than spending months improving your score because by then home prices and rates may have gone up to a point where you won’t gain anything you’ll have a higher score which is
Good for other credit purchases but you’ll likely be looking at higher home prices and rates so my advice is to go ahead and take advantage of these historically low rates if you qualify for a mortgage loan if you don’t qualify for a mortgage loan now then make raising your credit score a priority okay thanks so much for tuning in if you’ve got any questions
About this or if you’d like a a lender referral we know some good ones we’re at 304-264-2828 and we’ve got a page on our website where you can see the current interest rates and the pros and cons of each type of mortgage so that link is meet me in the panhandle dot com slash mortgages i’ll put a clickable link in the comments below as well okay thanks so much
For tuning in and i’ll see you next week and have a great rest of the day bye
Transcribed from video
How Credit Score Affects Mortgage Rate By Meet Me In The Panhandle
