What Role Does My Credit Report Play in Terms of Obtaining a Mortgage?
Banks, mortgage bankers and other mortgage lenders offering conventional mortgage programs consider a prospective borrower's credit report among the more important factors in approving the prospective borrower for a specific mortgage program.
The credit report shows the borrower's current credit situation and credit history that the mortgage lender uses as one of the factors to determine the prospective borrower's eligibility for a mortgage, interest rate, and the loan amount offered relative to the property value.
Mortgage lenders consider the mortgage score in approving a potential borrower.
Mortgage lenders could potentially require a minimum credit score such as a score equal to or greater than 620.
Mortgage lenders could potentially offer more attractive programs and interest rates to prospective borrowers with higher credit scores and other favorable factors considered by the mortgage lender.
Borrowers could potentially be eligible for mortgage programs that require less equity if their credit scores are higher.
A borrower could potentially qualify for a conventional mortgage with a loan to value equal to or between 80% and 90% with a credit score equal to or greater than 720.
A credit score equal to or greater than 700 with a loan to value equal to or less than 60% could potentially help the lender provide a better interest rate to a prospective borrower for a given mortgage program.
In addition to the credit score, the lender considers other aspects of the credit report.
A potential borrower with one or more late payments in their recent past may not be eligible for mortgage programs with certain lenders.
The lender who considers offering a mortgage to a first time home buyer may place additional emphasis on the amount of, the credit limits on, the open dates for, and the payment history involving trade lines.
Any government lien notated on the credit report may be required by the lender to be satisfied and/or paid prior to the lender funding the mortgage.
Credit reports could impact a borrower's ability to obtain a mortgage or some of the favorable terms and programs offered to stronger candidates.
Some prospective borrowers participate in credit monitoring programs that keep the participant aware of any changes to the credit report.
Prospective borrowers could also work with a mortgage broker or credit repair specialist to better understand their credit situation.
A mortgage broker or credit repair specialist may be able to offer actions to the borrower that could potentially improve the prospective borrower's credit score or report.
The credit report shows the borrower's current credit situation and credit history that the mortgage lender uses as one of the factors to determine the prospective borrower's eligibility for a mortgage, interest rate, and the loan amount offered relative to the property value.
Mortgage lenders consider the mortgage score in approving a potential borrower.
Mortgage lenders could potentially require a minimum credit score such as a score equal to or greater than 620.
Mortgage lenders could potentially offer more attractive programs and interest rates to prospective borrowers with higher credit scores and other favorable factors considered by the mortgage lender.
Borrowers could potentially be eligible for mortgage programs that require less equity if their credit scores are higher.
A borrower could potentially qualify for a conventional mortgage with a loan to value equal to or between 80% and 90% with a credit score equal to or greater than 720.
A credit score equal to or greater than 700 with a loan to value equal to or less than 60% could potentially help the lender provide a better interest rate to a prospective borrower for a given mortgage program.
In addition to the credit score, the lender considers other aspects of the credit report.
A potential borrower with one or more late payments in their recent past may not be eligible for mortgage programs with certain lenders.
The lender who considers offering a mortgage to a first time home buyer may place additional emphasis on the amount of, the credit limits on, the open dates for, and the payment history involving trade lines.
Any government lien notated on the credit report may be required by the lender to be satisfied and/or paid prior to the lender funding the mortgage.
Credit reports could impact a borrower's ability to obtain a mortgage or some of the favorable terms and programs offered to stronger candidates.
Some prospective borrowers participate in credit monitoring programs that keep the participant aware of any changes to the credit report.
Prospective borrowers could also work with a mortgage broker or credit repair specialist to better understand their credit situation.
A mortgage broker or credit repair specialist may be able to offer actions to the borrower that could potentially improve the prospective borrower's credit score or report.