When Determining how much home you can afford and whether you are eligible for a home loan, a lender will look at your credit score. Typically, you need a 580 or higher to qualify, but it is recommended to have a 620 or higher. The higher your credit score, the better leading terms you may be eligible for.
Borrowers with high credit scores tend to get lower interest rates on mortgages than borrowers with low credit scores.
- A credit score of 740 or higher qualifies for the best interest rates from most lenders.
- It is difficult, but possible, to get a mortgage with a credit score under 620.
- The difference between the best and worst rates can vary by a full percentage point and a half.
Call us today and we can help you in contact with one of our preferred lenders to help you through the qualify process.