Your credit score plays a major role in your ability to secure a mortgage. Not only does it impact your qualification for a loan, but it also influences your interest rate, down payment, and other terms of your mortgage.
If you’re considering buying a house and want to be sure your credit is ready ? Here’s what you need to know.
Lenders typically use this rating chart to determine where you stand in terms of your credit score and what rates you will receive.
Excellent (Scores 780+) – a credit score rate of 780 or more will get you the best interest rates available. You also will probably always be approved for a loan.
Very Good (Scores 779-720) – This score is considered to be near perfect as well and you will probably have no trouble qualifying for a mortgage.
Good (Scores 719-680) – A credit score that falls within this range is still good and you will usually have little to no trouble getting approved for the loan or mortgage.
Average (Scores 679-620) – While this is still a good credit score, it may generate a slightly higher interest rate for a loan or mortgage.
Poor (Scores 619-580) – Scores in this range indicate that you are high risk. It may be difficult to obtain loans and if approved, you will likely be offered a higher interest rate.
Very Poor (Scores 579- 500) – Scores in this range are rarely approved for much, but your credit score can be repaired. The alternative for this credit score, is an alternative lender such as “B” lender or a private lender. You will likely be charged a higher interest rates and you will also a lender and mortgage broker fees to obtain a mortgage.
Needs Work (less than 500) – credit scores less than 500 will not get approved for new credit and you should seek credit improvement help.
Need Help getting your credit score in order, call TheMashTeam. We may be able to offer suggestions on improving you score.