What credit score should I have to get a good rate on a Mortgage?
I want a good rate, what credit score do I need?
The standard benchmark for having a average credit score that the lender needs under the underwriting guidelines is a 640 credit score for at least 2 of the three credit bureaus. So, if you fall below that rate, you will need to either lower your credit card debt or clean up some derogatory credit which may be on your credit reports. Generally, the better the credit score the lower your interest rate.
Lender’s have a sliding scale they use when underwriting credit, debt to income ratios, down payment, cash reserves and other factors to determine an loan approval. They typically follow the guidelines set forth by the FHA (Federal Housing Administration), Freddie Mac and Fannie Mae. These underwriting guidelines have consistent updates to reflect various market conditions and micro or macro lending concerns. LendPlus Financial keeps up with these guidelines and consistently trains their staff and team members to be on top of the newest information on behalf of their clients.
LendPlus Financial loan agents help clients with determining their credit score and can make suggestions to improve the score. They know strategies which can help you increase your credit score enough to get you above a certain credit score bench mark. For example, let’s say you have a credit score of 672, It would be wise to lower your credit card debt and pay off some bills to increase your credit score before the underwriter pulls your credit for underwriting purposes. Having a credit score that is above the 680 credit level can save you thousands of dollars over the term of the loan. So, it’s really worth it to speak with a LendPlus Financial loan agent. They will work with the underwriter to strategize with you go help you get the best interest rates, terms and most favorable loan program for your situation.