Credit Scores and Mortgages: What You Need to Know
Filed under Mortgage on Feb 11,2016 | Tagged in: bankrate.com, credit scores, financials, fixed rate mortgages, mortage lending, mortage loans, mortgages, real estate finance
The holiday gift-buying binge is over and the credit card bills are coming in. If you’re thinking of applying for a mortgage this year, be sure to pay your bills on time.
That’s because your credit score can affect the mortgage rate you may qualify for, or prevent you from getting a mortgage at all. Generally speaking, a credit score below 620 will make it difficult to qualify, while a score of 740 or more will probably help you get a decent interest rate. Sheyna Steiner, writing for Bankrate.com, notes that lenders prefer borrowers with low balances, a long history of on-time payments and a mix of credit utilization — for instance, a car loan and a couple of revolving accounts such as credit cards.
Check this helpful article, ‘How your credit score affects your mortgage rate‘ for more details. If you feel your scores are in good shape and you’re ready to start your home search, let Vanguard Realty Associates help you “score” the perfect home!