Sunday, October 1, 2023 / by Lance Kelehan
When it comes to buying a home, your credit score plays a critical role in your ability to secure a mortgage and ultimately purchase your dream home. Your credit score is a numerical representation of your creditworthiness, and lenders use this information to determine how likely you are to pay back your loan on time.
Here's what you need to know about understanding your credit score and how it affects your home buying ability:
The Importance of Credit Scores in the Home Buying Process
Your credit score is one of the most important factors that lenders consider when evaluating your mortgage application. A higher credit score typically translates to a lower interest rate and more favorable loan terms, which can save you thousands of dollars over the life of your mortgage. Most lenders use the FICO credit scoring model, which ranges from 300 to 850. A score of 700 or higher is generally considered good, while a score below 650 may make it more difficult to secure a mortgage.
Monday, May 1, 2023 / by Lance Kelehan
As a buyer, one of the most important aspects of buying a home is securing financing. There are many different financing options available for homebuyers, including mortgages, and it's important to understand these options and how to qualify for the best rates. Here's a breakdown of some of the most common types of financing options for homebuyers:
Conventional Mortgage: A conventional mortgage is a home loan that is not guaranteed or insured by the government. These loans typically require a higher credit score and down payment than other types of mortgages, but they also offer some of the lowest interest rates available.
FHA Loan: An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. These loans are designed to help lower-income and first-time homebuyers qualify for a mortgage. FHA loans typically require a lower down payment and credit score than conventional mortgages, but they also require mortgage insurance premiums.
VA Loan; ...