On Your Credit Score And Your Mortgage
When you want to purchase a home, in most cases, you will need to get a mortgage. Most people can qualify for a mortgage and they usually need a downpayment to buy the home too. When you are looking into this process, you will want to know the effect your credit score and your mortgage will have on your life. It’s important that you understand what you are looking at so that you are not surprised when you are looking into buying a house. An Atlanta Mortgage Broker can help source the best Atlanta Mortgage Rates.
Your Credit Score And Your Mortgage
When you go to apply for a mortgage, you will find that the lower your credit score is, the higher you will pay for your mortgage. That is because the higher your credit score, the better risk you are to a lender. It will make a difference in your interest rate also. Here is an example so that you can see why it makes sense to have a higher credit score when you are looking to purchase a home: If you have a credit score of 750, you will be able to get a 30-year mortgage for $200,000 at an interest rate of 3.625%. That is really good but if your credit score was lower, you will pay a lot more in interest over the course of your loan.
What Credit Score Do You Need To Get A Loan For A Home?
You can qualify for a loan for a home when you have a credit score in the 500s in most cases. Once again, you will pay a lot more in interest over the course of your loan. This is where taking the advice of Atlanta Mortgage brokers will help. You definitely want to have a higher credit score before you apply for a mortgage so make sure that you keep your credit good and that you are keeping an eye on it. You can get a free copy of your credit report each year and it is a good idea to do so that you can check it for the correct information. If there are any discrepancies in it, you will want to look into so that you can get the proper information listed on your report. Your FICO score is so important when it comes to purchasing a home and it can affect the terms of your mortgage in a variety of ways.
Be sure that you can handle the responsibility of owning a home in Atlanta. Not only will you need to be able to afford it financially but you will also need to make sure that you are able to handle the responsibility of keeping up with the repairs that will go into it. When you know that you can afford to have a home, it can make a huge difference for you. Sit down and really look over all of your finances. You want to be in the best position possible when you purchase a home. Your credit score is a very important part of this. Look into it to make sure that you will get the best rates possible for your Atlanta mortgage.