When you’re in the market to finance a home, one of the most important things you need to do is evaluate your credit rating and there are many places you can obtain a free credit report. Your FICO score, or credit score, is one of the biggest factors in qualifying for a home loan and what your interest rate will be.
According to bankrate.com the difference between the best and worst rates can vary by a full percentage point and a half. That can be several hundreds of dollars difference in your monthly payment!
Today, if you’re above 740 that is a pretty good credit score and you shouldn’t have much of a problem securing a good interest rate from your local lender, but 620 and below can be a real challenge. If you find that your credit rating isn’t where it needs to be, it’s time for a credit intervention. Nerdwallet has a helpful write-up from Bev O’Shea on raising your credit score by 100 points. The article states:
“The lower a person’s score, the more likely they are to achieve a 100-point increase,” he says. “That’s simply because there is much more upside, and small changes can result in greater score increases. It’s harder to improve scores when you already have a strong credit history.”
Read the entire article “Raise Your Credit Score By 100 Points.”
When you are looking to purchase a home, trust the experienced Suffolk attorneys at Ferguson, Rawls, and Raines to guide you with sound decisions throughout the process. Contact Us Today!
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