If you're planning to buy a house, managing your credit score is vital. Mortgage lenders use credit scores as a benchmark for qualification, and a lower score can hurt your chances of being approved for a mortgage.
Here are some more details about how credit scores affect your mortgage loan chances:
The customary loan application process requires a credit score of at least 620. It's possible to get a mortgage with a lower score, but you may have a higher interest rate as a result.
The loan officer obtains a single credit report containing all three credit report types. The lenders may use your credit score or lower middle credit score to decide if a joint partner applies.
Mortgage lenders require higher credit scores because they use it as a way to measure how well you handle outstanding debt. The higher your credit score is, the less risk you pose to their lending. You could end up saving thousands over the life of your loan and capitalize on a lower monthly payment.
It's possible to get a mortgage with a low credit score, but there are trade-offs to be aware of. With conventional loans, a lower credit score might require a higher down payment or private mortgage insurance.
Other loan options like VA loans or loans offered by the Federal Housing Administration have more flexibility when it comes to minimum credit score. However, these mortgage loans come with other specific requirements for approval.
Maintaining a good payment history and credit report will help you in more ways than just getting a mortgage. However, for a major purchase like a home, it's crucial to have the best possible financial standing before beginning the process.
Broker Profile: Pierre comes from a diverse background. His adolescent and early adult years found him working for his father, a renowned structural engineer, and his brother, an architectural designer and general contractor. His knowledge of construction design (architectural & structural) and practices is significant. He coupled his construction background with his considerable sales experience, by becoming licensed to sell real estate in Massachusetts in 1986.
Pierre is also a licensed Attorney in the Commonwealth, who formerly worked for the Massachusetts Attorney General’s office as a litigator in the Victim & Witness Assistance Division of the Family & Community Crimes Bureau, litigating cases involving victims of violent crime, and since then has had his own legal practice.
For decades, Pierre has excelled in helping buyers of real estate find that condo, single-family, multi-family, lot of lands, or commercial property they desire to buy, or by effectively marketing his clients’ properties to sell their property for the most amount of money possible. His professional background embodies the ideal combination of construction, sales, negotiating, and contract drafting, which is essential to actualizing his clients’ goals and/or dreams. He does all of this with attention to detail, integrity, and success.
Since 1995, PCR Realty has helped buyers and sellers make their transactions as successful as possible. Using a consultative approach, PCR Realty approaches each experience as a unique opportunity for its clients. As a full-service real estate brokerage firm, PCR Realty provides leading-edge services for buyers & sellers.
When it comes to successfully navigating today’s complex real estate market, you need to work with someone who has the experience and commitment to see it done right. PCR Realty excels at matching buyers to sellers. From state-of-the-art marketing to an experienced broker, PCR Realty works diligently to far exceed your expectations. PCR Realty invites you to learn more.
