Mortgages and FICO Scores: What’s The Deal Between the Two?

fico passed mortgage house loanHome buying can be one of the most exciting experiences of your life. However, because it involves making one of the hardest decisions that can alter your finances and life in the long run, it can also be very stressful.

Since buying a home usually involves borrowing a huge amount of money, it is necessary that you are well-prepared to handle this responsibility, or you can end up swimming in a big pool of debt. One way to prevent financial catastrophe is to make your FICO score look more attractive to lenders.

The Role Your FICO Score Plays in Securing a Mortgage

Keeping a good credit score is one of the most effective ways to secure a mortgage with low interest rates with the help of a reputable mortgage broker. Salt Lake City lending companies agree that the higher your FICO score is, the greater your chances of finding great mortgage offers. This basically means lower interest rates and more options.

Almost all types of lenders take a good look at your financial history. This is how they can tell if you are a high-risk borrower. High-risk borrowers are those who have low credit scores. They either get rejected or are given higher interest rates because their rating may mean being unable to make mortgage payments on time.

Improve Your Credit Score Prior to Mortgage Shopping

With FICO scores being a major consideration in mortgage applications, this is the first thing you should focus on before you actually shop around for a home or a lender.

To start, get a copy of your credit report from all the major credit reporting companies. Ensure there are no mistakes or discrepancies in it. From there, start coming up with a plan to boost your score and make it more attractive to lenders.

Getting help from a mortgage specialist is also very helpful, as they can guide you towards the right path and help you make better financial decisions. Talk to a mortgage broker Salt Lake City homeowners and buyers highly recommend to find out what you can do to groom your FICO.

Posted on by Tsfp6 in Money Times

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