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Home Mortgage Credit Score

Your credit score can be the biggest factor in determining whether or not you get a home mortgage. The credit score can also affect the interest rate you get, the amount of mortgage you can qualify for and the terms of the mortgage.

A credit score is a numerical rating of your credit worthiness based on a number of factors. Factors that can affect your credit score include your record of paying bills on time, unpaid debts and bankruptcy.

Credit scores are determined by the big three credit bureaus; Experian, TransUnion and Equifax. These agencies compile data about creditors and make it available to banks, credit companies and other lenders.

Why you’ll want a High Credit Score

The higher your credit score the better you’ll look to mortgage lenders. This means that you’ll want a high credit score when you go looking for a mortgage.

Generally, you’ll want a credit score of over 600 to qualify for a mortgage. Those with lower credit scores will have trouble getting a mortgage. This means that you may need to take steps to raise your credit score.

Raising Your Credit Score

It is possible for a person to raise their credit score if they pay attention to their credit. This means you should pay your bills on time, try to pay off debts and remove negative information from your credit report.

Credit scores are based on negative information about you that lenders give to the Big Three. More negative information received about you will lower your credit score. More positive information will raise your credit score.

This means you should be responsible, pay your bills on time and don’t get too much credit card debt if you want a mortgage. It also means that you should try to pay off unpaid bills or negotiate with creditors to eliminate or lower debts if possible. 

Check Your Credit Report

Before seeking a mortgage you should check your credit report. You can order a free credit report by going to the Big Three’s Websites.

Once you have your credit report go over it carefully and pay close information to negative information. If you see negative information on your report that is false or inaccurate you can challenge it and get it by removed from the credit report by reporting to the credit bureau.

Everyone should do this because surveys indicate that most people have false or inaccurate data on their record records. Removing inaccurate information can raise your credit score and improve your chances of getting a mortgage.