| One of the first things a lender will want to know | | | | For example, say your credit report from the 3 big |
| about you when applying for a mortgage is your credit | | | | credit rating companies ( Experian, Equifax and Trans |
| score. | | | | Union) give you a 670 score. This may qualify you for |
| Your credit score will have a huge impact on the | | | | a 30 year fixed mortgage at 6.5%. Now, say your |
| interest rate you'll be charged on your mortgage as | | | | score was a little better - 700. This infers you are a |
| well as the dollar amount of your monthly payment. | | | | better credit candidate, and are awarded a 5.5% |
| This is directly related to you attaining the best | | | | interest rate for the same loan. |
| mortgage rate! | | | | This decrease of one point in interest will save you a |
| So obviously you should work towards getting the | | | | ton of money -$51,760 savings, just for having a better |
| highest credit score possible, which puts you in the | | | | credit score! |
| best position to negotiate the best mortgage rate. | | | | So...the best credit score = best mortgage rate = |
| Remember! A bad credit score doesn't mean you're a | | | | lower monthly mortgage bill. So to insure you get the |
| bad person or is something to be embarrassed about | | | | best mortgage rate possible make sure your credit |
| - it's simply a number that rates your timeliness | | | | score is the best it can be. |
| regarding paying your bills, ie...revolving creditcards, car | | | | It may be wise in some cases to delay the mortgage |
| payment etc... | | | | process and repair your credit - then go through the |
| The difference in 30 points on your credit score has a | | | | application process. If you have poor credit don't |
| strong impact on you achieving the best mortgage | | | | despair! There are many ways to fix less than perfect |
| rate as well as strong financial implications that are | | | | credit - which is your ticket to the best mortgage rate. |
| worth noting. | | | | |