Is My Credit Score Important In Getting A Mortgage Rate

By Jim Micheals

Tough economic times have caused mortgage lenders to tighten their standards. Find out how your credit score can effect your ability to get a mortgage rate.

Foreclosures and Mortgages

The economy has made many aspects of life tough for many people. With so many people losing their jobs, the number of foreclosed homes has increased dramatically in the past few years. In response to this, mortgage lenders have tightened their standards, and are rejecting more and more applicants.

Credit Scores and Mortgage Rates

Your credit score will not only affect whether or not you will be approved for a mortgage, and it can also affect your mortgage rate. If you are fortunate enough to be approved, a few point lower on your credit score can change the interest rate enough to add hundreds of dollars to your monthly payment.

What can you do?

It is very important to check your credit reports and fix anything that needs to be fixed. Make sure you check all three of the major credit reporting agencies. You are entitled to a free report from each of the agencies every twelve months, but you will need to pay to get your score. This is an important step you need to take before applying for a mortgage.

To increase your score, pay off any credit card balances, pay your bills on time, and don’t open any new accounts. You also don’t want to close any unused accounts. This reduces the amount of credit you have available and can affect your score.

How Important is My Score

Your credit score is vital to your success in being approved for a good mortgage rate. Make sure you do your homework before applying so you know where you stand. You don’t want any surprises when you are sitting with a broker or on the phone with someone from your lender.

Related posts:

1. How Does My Credit Score Impact My Ability To Get A Mortgage Loan?
2. Can a Great Credit Score Guarantee the Best Mortgage Rates?
3. Does My Credit Score Affect My Mortgage Rate?
4. Does Having A High Credit Score Decrease My Mortgage Rate?
5. How Does My Credit Score Impact My Mortgage Interest Rate?