Credit Score for Home Buying - What Score Do I Need?
Article summary: An explanation of the connection between credit scores and home buying success. A must-read for any first-time home buyer.
Credit is a popular topic among home buyers these days. A person's credit score has always been important for home buying purposes, but today this is even more true.
After the mortgage crisis that began last year, federal regulators began to crank down on mortgage lenders. And as a result of this, the lenders pay closer attention to a borrower's credit score and financial history.
So what credit score is needed for home buying in today's economy? Well, this will still depend on the individual mortgage lender involved and their particular lending practices. But suffice to say that a better credit score will certainly make your home buying process a lot easier. Not only will you have an easier time qualifying for a mortgage loan, but you'll also qualify for a better interest rate if your score is high.
The average credit score in the United States falls between 650 and 700, depending on who you ask. Higher is better. The higher your score the easier time you'll have buying a home and getting a mortgage.
According to leading experts, a credit score of 720 or higher is ideal for home buying purposes. A score in this range will ensure that you get qualified for a mortgage loan and that you get a good interest rate on the loan (which translates into a lower mortgage payment each month).
So now you know what the average score is in this country, and what is considered to be a good credit score for home buying purposes. The next you want to do is request copies of your credit reports and scores so you'll know where you stand.
If you request your score and find that it's low, you will want to work on improving it before buying a home or applying for a mortgage loan. On this website, you'll find plenty of tips for improving your score.
What credit score is needed for home buying success? It depends on the lender. But most experts agree that a score of 720 or above is needed to get the best interest rate on your mortgage loan. You might get approved for a loan with a lower score than that, but you certainly won't get the best interest rate.
So the key is to (A) know what your score is in the first place, and (B) work hard to improve your credit score for home buying purposes if necessary. This has also been an important step for home buyers, but it's even more important today as a result of the mortgage crisis that began in 2007. Mortgage lenders will pay closer attention to your credit history and score, so you should do the same!
======================
Learn more about this subject:
The Home Buyer's Guide to Credit
======================
Credit is a popular topic among home buyers these days. A person's credit score has always been important for home buying purposes, but today this is even more true.After the mortgage crisis that began last year, federal regulators began to crank down on mortgage lenders. And as a result of this, the lenders pay closer attention to a borrower's credit score and financial history.
So what credit score is needed for home buying in today's economy? Well, this will still depend on the individual mortgage lender involved and their particular lending practices. But suffice to say that a better credit score will certainly make your home buying process a lot easier. Not only will you have an easier time qualifying for a mortgage loan, but you'll also qualify for a better interest rate if your score is high.
The average credit score in the United States falls between 650 and 700, depending on who you ask. Higher is better. The higher your score the easier time you'll have buying a home and getting a mortgage.
According to leading experts, a credit score of 720 or higher is ideal for home buying purposes. A score in this range will ensure that you get qualified for a mortgage loan and that you get a good interest rate on the loan (which translates into a lower mortgage payment each month).
Improving Your Credit Score for Buying a Home
So now you know what the average score is in this country, and what is considered to be a good credit score for home buying purposes. The next you want to do is request copies of your credit reports and scores so you'll know where you stand.
If you request your score and find that it's low, you will want to work on improving it before buying a home or applying for a mortgage loan. On this website, you'll find plenty of tips for improving your score.
So Let's Recap
What credit score is needed for home buying success? It depends on the lender. But most experts agree that a score of 720 or above is needed to get the best interest rate on your mortgage loan. You might get approved for a loan with a lower score than that, but you certainly won't get the best interest rate.
So the key is to (A) know what your score is in the first place, and (B) work hard to improve your credit score for home buying purposes if necessary. This has also been an important step for home buyers, but it's even more important today as a result of the mortgage crisis that began in 2007. Mortgage lenders will pay closer attention to your credit history and score, so you should do the same!
======================
Learn more about this subject:
The Home Buyer's Guide to Credit
======================
Labels: Credit scores
posted by Brandon at
2:45 PM
