If you’re on the market to purchase a home, it’s a great idea to examine and improve your credit score. This score is
a summary of your debt history, if you’ve made payments on time and the number of loans you have pulled out.
Mortgage lenders use your credit score to determine if you financially qualify to be approved for their loan. This
score is also a huge factor on benefits you can receive during your home financing journey.
Low-interest rates
Most lenders require a credit score of at lease 620 to qualify for their loans. This score is considered to be fair
on the score gauge, but having a score falling into the good or excellent range (670 or more) can come with addition
perks.
Lenders often offer lower interest rates to those which higher credit scores, saving you thousands of dollars over
the lifespan of the loan.
More mortgage loan options
With an excellent credit score, more lenders are willing to work with you to provide you with financing to get the
home of your dreams.
With more lenders available to you, this gives you the opportunity to fine-pick through your options to choose one
best fitting your needs. These mortgage options may include:
- Lower interest rates.
- Lower down payment required.
- More term options for your loan.
- Etc.
Checking your score regularly can alert you of any changes needing to be made which can increase your score. By
paying off debt on time, checking for credit errors and paying off debt quickly, you can boost your
score.
Financing for your new home doesn’t have to be a pain to acquire. By boosting your credit score, you give yourself
the freedom of choice for home financing, which helps you have more resources available to purchase your next home.
