Are you interested in buying a home? If so, you should be concerned about your credit score. This number affects many aspects of your life, but when it comes to buying a home, your credit score will relate directly to the mortgage loan you’re approved for as well as the interest rate the lender assigns. It may feel complicated, but Premium Mortgage Corporation, serving Rochester, Syracuse, and Buffalo, NY, as well as Barre, VT, will help you sort out your credit score and understand everything you need to know about applying for a mortgage loan.
Here’s why your credit score matters when applying for a home mortgage loan and what you can do to give your score a boost.
620 – 740 Is the Range You Want
The top tier FICO score is 740 or higher. If you have these numbers, you can expect to get the best mortgage rates — meaning the lowest interest rates. In the middle are scores from 740 down to 620. The interest rates for these borrowers can differ by one to two full percentage points, depending on the lender. If your score is below 620, you might have trouble finding a willing lender. Instead, try to work on your credit score before applying.
Lower Rates Save You Hundreds of Dollars Every Month
Lenders will add points to the interest rates for those with lower scores. At first, you may be tempted to think this is much ado about nothing. After all, one point isn’t much, right? However, that single digit can amount to hundreds of dollars saved each month. If you multiply a hundred by twelve and then again by the number of years of the mortgage, it’s easier to understand this importance.
How to Improve Your Credit Score
You can raise your credit score and secure a better mortgage loan by lowering the outstanding balances on your credit cards. Be sure to pay your bills on time, every time. Avoid opening new accounts, because having too many of them can make lenders believe you are desperate and over your head in debt.
When you’re ready to apply for a mortgage loan, call Premium Mortgage Corporation at (585) 241-0000. You can also find more information and office locations on their website, and connect with them on Facebook and Twitter.
Corporate Contact Information:
2541 Monroe Avenue
Rochester, NY 14618
NMLS #3254 Equal Housing Lender
Licensed Mortgage Banker NYSDFS