How Your Credit Score Can Impact Mortgage Options

Article details provided by Teresa Joseph, VP, Residential Lending Manager

Have you been thinking about buying a house?

Knowing your credit score is important because it can affect your lending eligibility.

"A strong credit history can help you toward your goal of homeownership," said VP, Residential Lending Manager Teresa Joseph. “Your credit score can affect where you qualify, as well as the type of loan and terms.”

A 620 score is the minimum requirement for conventional, VA, and USDA, while the FHA requires a 580 score.

You can still receive approval if you have a lower credit score, but it may affect your down payment, monthly payment and interest rate.

Recent bankruptcies, foreclosures, and late loan payments can negatively affect your credit score.

“We look at your complete credit history but mainly focus on the last two years,” Teresa said.

So, how can you improve or maintain a good credit score?

Here are some tips:

• Make timely credit card, student loan, auto loan, and personal loan payments.
• Set up autopayments to stay on schedule.
• Prioritize paying off high-interest debt.
• Consolidate debt.
• Identify collection and delinquent accounts and address them as soon as possible.
• Check your credit report annually.

Our lenders pull your credit score from TransUnion, Equifax, and Experian and take the median of those three scores to determine your mortgage rate.

Contact our Mortgage Team for more information.