Your credit score plays an important part in the home buying process and in determining the different programs that you are eligible for. At The Chris Bonin Loan Team, we work with all types of credit scores and have numerous programs that can help those with Excellent Credit, Good Credit, & The Credit Challenged. We can also provide excellent advice and tips on how to raise your credit score for your upcoming mortgage. Please call us first for advice before you try to “fix your credit yourself”. You may do things that will unintentionally hurt or lower your credit score like payoff collections.
Credit scores are generated by plugging the data from your credit report into software that analyzes it and cranks out a number. The three major credit reporting agencies don’t necessarily use the same scoring software, so don’t be surprised if you discover that the credit scores they generate for you are different.
Below is a breakdown of the approximate value that each aspect of your credit report adds to a credit score calculation.
Credit scores (usually) range from 340 to 850. The higher your score, the less risk a lender believes you will be. As your score climbs, the interest rate you are offered will probably decline.
Borrowers with a credit score over 700 are typically offered more financing options and better interest rates, but don’t be discouraged if your scores are lower, because there’s a mortgage product for nearly everyone.