We see all sorts of situations, and we can tell you your best course of action. ![]() If you’re still weighing whether you should get a loan now or work on your credit – give us a call. Down payment – may affect the rate depending on the loan type.įinal Comments on Good vs.Property type – single-family homes get lower rates than condos.Occupancy – primary residence gets the lowest rate, and investment receives the highest.Other Factors Besides Credit That Affect Interest Rates But don’t close the account because that will lower your score. For one, if you have extra money over and above what you’ll need for a down payment and closing costs, consider paying off or paying down credit cards. Pay down credit cards – There are many ways to improve your credit cards. Here are quick fixes that can help raise your score. ![]() Our licensed loan officers can offer credit advice to improve your credit score for free. If you have a job and are open to being receptive to guidance from a mortgage professional, you should call Homestead to get pre-approved. Should you work on your credit before getting a mortgage? Ideally, you want the highest score possible but don’t want to wait so long that rates go up. As your score drops, your rate increases, and so does your monthly payment. So What’s Considered A Good Credit Score?Ī good credit score is 690 to 720. With a FICO score between 720 and 799, you’ll still get an excellent rate. A high score in this range means you have excellent credit and get the lowest interest rate. ![]() Once your score is above 780, you’re golden – and so is your interest rate. Great Credit Scores Make a Big Differenceĥ80-620: Ability to get a mortgage with compensating factors, like great income or cash reservesĦ20-680: Eligible for FHA with a great rate but has MIĦ80+: Eligible for Conventional with a larger down payment (15-20%)ħ80+: Qualify for the best rates in the market Interest Rates for Excellent Credit Here’s how FICO scores are rated for mortgage applications:įor Mortgages, Good vs. Then you can decide whether you should work on your credit first or apply for a mortgage right away.īefore the recent Loan Level Pricing Adjustments (LLPA) put in place by the government, 740 would qualify for the best rates in the market. And how rates and credit scores are entwined. great credit score impacts your interest and payments. Getting a mortgage with a rock-bottom interest rate depends on your credit score.
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