07 Dec Home Buying Credit Score FAQ
There’s often a lot of confusion around what a “good” credit score is when you’re trying to purchase a home. Whether it’s your first home, or just the first home you’re buying after a poor financial situation, Redondo Mortgage Center wants you to walk into the bank feeling confident and cool. Here are some answers to the questions we get asked most frequently about home buying and credit scoring.
Q: What score do I need to be approved to buy a home?
A: If you’re hoping to obtain a conventional loan, you should aim for a score of at least 620. Most conventional lenders will not agree to loan money to anyone with a score lower than this. However, if you hope to obtain a special loan (like an FHA loan), you can have a score as low as 580.
Q: What is a “good” score for buying a home if I want the best interest rate?
A: If you’re buying a $200,000 home at 5%, you’ll pay $83,000 more in interest over the course of a 30-year mortgage than if you’re buying a $200,000 home at 3% interest. This illustrates how critical it is to have a great credit score when it comes to paying interest. A score of 740 + will get you those amazing rates.
Q: How do I get a copy of my credit score?
A: Head over to AnnualCreditReport.com to get your credit report. If you want your score, you can get it from CreditKarma.com, CCCO, FICO, or potentially one of your credit card companies.
Redondo Mortgage Center is an expert in the real estate world, with experience in both residential real estate and real estate investing. For more information, visit us at www.RedondoMortgage.com or call us at (310) 318-8999.