If you don’t have great credit, improving your mortgage credit score will be an important part of getting the best rate for your home loan in Northern Virginia. Many think that the process of buying a home begins when you step through the door of your real estate agent’s office, but the process actually begins with laying the groundwork for good financial qualifications that will give you the best loan terms possible. When you decide to buy a home, the very first thing that you should do is get a clear picture of your finances; especially your credit report.
Why Your Mortgage Credit Score is So Important
Those who are fortunate enough to have good credit find that their way to home ownership is, generally speaking, a fairly smooth process. But, for those with poor credit, it can be an entirely different story. The good news is, the number of consumers with a high credit score (high 700s or 800) is increasing.
As the credit market tightened after the recession, a buyer’s mortgage credit score became even more important. As a response to the recession, many consumers began to pay down their debt and cut down their spending. This was wonderful news for Northern Virginia homebuyers because, as an unintentional consequence, they were more than ready when the new mortgage financial qualifications were brought into play. Because of these new rules, mortgage applications are picked over with a fine-toothed comb, and the guidelines for qualifying for a home loan are much more strict.
A homebuyer with a lower mortgage credit score can often still qualify for a home loan, but they will usually have to pay a higher interest rate, which means paying more out of pocket every month for your monthly house payments.
Read Part 2 in my blog series on steps to take to improve your mortgage credit score.
Do you want to improve your credit score before applying for a home loan, but you don’t know where to begin? Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com, and I’ll put you in touch with a “no pressure” lender who will be able to chat with you briefly over phone or email to give you a few great starting steps to take.