Credit scores play a big part in the mortgage world. They are used both for loan eligibility and for mortgage rate pricing.
In other words, you credit score can dictate whether you qualify for a mortgage. And also at what cost.
Good credit scores are rewarded in the mortgage industry. They can expand your available loan options and help you snag the best rate.
This is super important because that mortgage rate might stay with you for years to come, possibly even 30!
The good news is credit is one of the few things you can (mostly) control, so do your best to avoid late payments and keep balances low.
Doing so will help you obtain and maintain an excellent credit score. In short, it’s best to strive for a score of 780 or higher to enjoy the lowest rates available.
And remember, mortgage lenders pull all three of your credit scores, then take the middle score for pricing and qualification purposes. So be sure your scores are solid with all three credit bureaus.
You can learn more about how mortgage lenders use credit scores via my in-depth article on the topic.
Or browse the posts below that are related to mortgages and credit scoring.
These days, the world is full of misinformation. You can thank the Internet for that, which has led to an explosion in content, both good… Read More »10 Big Mortgage Myths Proved Wrong, Once and For All
Mortgage Q&A: “Does refinancing hurt your credit score?” Everyone seems to be obsessed with their credit scores and what impact certain actions may have on… Read More »Does Refinancing Hurt Your Credit Score?
Two new credit scores will be used if and when you apply for a mortgage backed by Fannie Mae or Freddie Mac in the near… Read More »FICO 10 T and VantageScore 4.0 Approved for Fannie Mae and Freddie Mac Mortgages
Mortgage Q&A: “Does Having A Mortgage Help Your Credit Score?” If you’ve ever pulled your credit report and/or viewed your scores, you may have noticed… Read More »Does Having A Mortgage Help Your Credit Score? Your Mileage May Vary, Here’s Why
A while back, I cautioned readers to avoid swiping the credit card before applying for a mortgage. In short, the more you charge, the higher… Read More »Two Simple Ways to Boost Your Credit Score Before Applying for a Mortgage
You may have seen commercials lately for “Experian Boost,” a program that says it can increase your credit scores instantly. Their latest ad spot features… Read More »Should You Use Experian Boost Before Applying for a Mortgage? How It Can Help
Mortgage Q&A: “Do mortgage inquiries affect credit score?” When preparing to take out a mortgage, you may have concerns about your credit report being pulled… Read More »Do Mortgage Inquiries Affect Your Credit Score? Yes, But You Can Still Shop
Mortgage Q&A: “What credit score do I need to get a mortgage?” If you’re thinking about purchasing a new home or refinancing an existing mortgage,… Read More »What Credit Score Do You Need to Get a Mortgage? Learn the Key FICO Thresholds
This morning, Zillow, the company behind the love it or hate it Zestimate, released a new study that analyzed the impact credit scores have on… Read More »Zillow: Credit Score Single Most Important Factor for Mortgage Rates
There’s been a lot of fuss about the refinance market drying up lately, and we now know it’s not just noise. Last month, purchase-money mortgages… Read More »Purchase Applications Grab Majority Share of Mortgage Market in July as Refinances Fade Away
