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How Does My Credit Score Impact My Ability To Get A Mortgage Loan?

By Stacy Williams

How does my credit score impact my ability to get a mortgage loan? Can I change my credit score to get a mortgage? Will my credit score always be the same?

When you apply for a mortgage loan your credit report will be thoroughly evaluated. This will include evaluating your credit score. Your credit score is determined by three major principals. The first is the amount of credit you have out versus your income. If you are heavily in debt you will have a lower score. Second, the score is based on your payment history. If you are late making payments your score will be dramatically reduced. Third, the credit bureaus balance out all other relevant information that pertains to your credit life. This will include bankruptcies, high credit limits, amount of requests for credit and if you own a home. Each factor gives a certain percentage to your score. If you have a low score you will still be able to get a mortgage, but with strings attached. Low credit score mortgages have higher interest rates and higher closing costs.

Can I change my credit score to get a mortgage?

When you are applying for a mortgage loan you should always check your credit first. Allow yourself at least two to three months prior to applying for the mortgage loan to review and fix your credit report. You can boost your score in that period of time with a few simple tricks. Do not apply for any other credit during this period. Applications for credit drop your score. Pay all your bills on time, but not to early. Bills paid on the due date itself get the highest score. Finally, review your report for any mistakes and dispute them. It is a proven fact that 78% of all credit report contains score damaging errors.

Will my credit score always be the same?

Your credit score will vary each month. Each time you make any type of financial transaction your score will fluctuate. Once you receive a mortgage loan you will see your score go up in points. Mortgages are considered a stable debt and increase your score tremendously.

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2. How Does My Credit Score Impact My Mortgage Interest Rate?
3. Is My Credit Score Important In Getting A Mortgage Rate
4. Should I Repair My Credit Before Shopping For A Mortgage Rate?
5. How Does My Credit Score Impact My Mortgage Interest Rate?