I am often asked, "How will my credit scores effect my home loan."
With the new guidlines set by lenders the requirments are bringing greater demands on the home buyer. The definition of what is a good credit score has changed drastically over the past year. It is important to get your scores as high as possible. It can make a diference of thousands of dollars over the life of your home mortgage.
It is important for you to know where you stand on your credit scores. It is good to get professional help in reading your credit file. Lenders are looking for certain criteria before they will approve you for a loan. While your credit scores are very important they are also looking today at many other factors in considering your approval.
So what is a solid credit (or FICO) score? The aggressive new FICO classifications are as follows:
-- 740 - 850: Excellent borrowers qualify for the best financing terms.
-- 700 - 739: Very good borrowers receive favorable financing.
-- 660 - 699: Good borrowers should qualify for most loans.
-- 620 - 659: Fair borrowers may qualify but may pay higher interest.
-- Below 620: Poor borrowers will likely not qualify for a loan.
At HOPE we help our clients improve their total financial picture so they can qualify for the best interest rates available to them. If you would like to know more please call our friendly staff at 704-503-3669.