The Importance of Credit Scores for Home Loans
Credit Scores are an integral factor in determining loan approval and qualified interest rate. The better your credit score the better interest rate and programs you will qualify for. On a home purchase loan the minimum acceptable middle FICO score is 580. However, some lenders/banks require 620+ for loan approval to buy a home. Minimum credit score approval varies according to each lending institution guidelines.
The good thing about credit scores is that they can be improved prior to a home purchase. Here are 13 Credit Repair Tips that can assist you if you need to improve your credit scores. Buying a home is a major financial decision and obligation. Maybe one of the biggest financial decisions and obligation that you will make in your lifetime. Although a 580 credit score will get you approved for a home loan with some lenders. Having a 620+ score will qualify you for better interest rates and other loan programs. The better your credit score the better your options will be.
Written by Gerald Bouthner for www.RealtyTimes.com Copyright © 2016 Realty Times All Rights Reserved.