Can I qualify for a mortgage with my credit score?
Credit scores can range from 350 – 850 and lenders require a minimum credit score of 640 to qualify for most mortgage programs. Naturally the better the credit score, the lower your costs, rates and fees will be. The best rates tend to go to borrowers with credit scores of 740 or higher.
If you are ready to start the mortgage process, it is a good idea to gather your credit information. Know your credit score and what your credit history looks like. This will help you understand your credit profile and areas that may need improving.
All credit reporting agencies can be accessed annually at no charge by visiting www.annualcreditreport.com . The last twelve months of credit history have the most impact on approval, as well as any prior foreclosures, short sales and bankruptcy.
There are things that you can do to improve your credit score before you start looking for the right mortgage program. Settling any judgements or tax liens, removing incorrect credit information and keeping mortgage inquiries to a minimum will work in your favor to bring your credit score up.
Genisys Credit Union members can work with Accel Money Management Assistance to help improve your credit score through financial education and budget assistance. This is a FREE benefit to our members.
Accel representatives are available Monday through Thursday 8 a.m. to 12 midnight (EST), Friday 8 a.m. to 7 p.m. and Saturday from 9 a.m. to 1 p.m. To use this FREE service, simply call 1-877-33ACCEL (332-2235) or visit them on the web at www.accelservices.org.
More Common Mortgage FAQs
- How do I figure out how much I can afford?
- What is an FHA loan and how do I qualify?
- What is the difference between Fixed and Adjustable Rate Mortgage?
- How much do I need for a down payment?
- What is PMI and can it be avoided?