You have a lot to consider when you’re shopping for a mortgage. Information on your credit report can influence how a potential lender may view your creditworthiness, and it can also impact your loan terms.
Being prepared for credit related transactions may be the single more important part of a transaction. Many consumers start by discussing housing needs with a realtor, then get referred to a lender, then proceed to discuss their credit improvement options with a third party. This can work, but if logic prevails:
Backwards Mortgage Transaction: Realtor → Mortgage → Credit
Proper Mortgage Transaction: Credit → Mortgage → Realtor
How Credit Scores Affect Mortgage Rates
People with higher credit scores tend to get lower interest rates on mortgage loans. Alternatively, people with low credit scores may not be approved for loans or may need to pay higher interest rates.
How Your Spouse’s Credit Can Impact Your Mortgage Loan
Lenders usually look at each person’s individual credit report and score when making decisions about mortgage loans. Some lenders use the median when comparing a couple’s score, but it’s worth noting that lenders may decide to decline a loan offering if they deem one score too low. Others may approve the loan, but only at a higher interest rate.
Credit World Mortgage Preparation
The CreditWorld platform is designed to streamline credit improvements, eliminate borrower red flags in preparation for lender underwriting processes, increase credit scores, and prepare clients for approvals and excellent loan terms. We empower our clients to sign off on winning transactions.