Common Questions: Credit Scores
Today we’re talking about two words that may make you cringe. Credit scores. Maybe you’re already wanting to click onto the next page. We get it! But we hope that by the end of this blog you’ll feel more confident, prepared, and knowledgeable about credit scores. Odds are, your score won’t disqualify you from purchasing a home. You just need to know the right process to take depending on your score.
We sat down with Molly Wright, who is an expert in all things lending, to teach us a little bit about credit scores. With over 25 years in the industry, she knows her stuff better than most, and she’s not afraid of that power-packed three digit number, either.
What is a credit score?
A credit score is a rating number that is very important to obtaining a mortgage for a home loan. You don’t have to have a great credit score, but the higher the score, the higher the loan opportunity that you have.
How can it affect your loan?
Higher credit scores result in the best interest rates. Since your credit history is clear, you can be trusted with a great loan with a lower rate of interest. You won’t be forced take hits because of bad credit. For example, in a conventional loan, if you’re falling below the 740 range, you’ll probably see a little tick higher in your interest rate.
So I don’t have to have great credit?
Here at US Lending, it’s sometimes possible to do loans all the way down to a 580 credit score. Just because you may have a lower score doesn’t mean you’re disqualified from purchasing a home! You can still get a loan with a great rate, but you may be limited to a government loan and have to get mortgage insurance for the life of the loan.
If you’re interested in getting information about a loan, or you’re interested in knowing what it would take to become a home owner, feel free to schedule a free consultation! Even if you’re just thinking of purchasing a home in the future, it is so helpful to come in and get a free pre-qualification and credit report. It’s a perfect step in the right direction. Spoiler alert: if you’re currently renting a home, it’s more than likely that you’re ready to purchase a home. If you’re not ready, we’ll help you nail down the steps you need to take in order to get there.