You may be thinking of buying a house in San Diego but are not sure what your credit score is. There are several sites such as www.creditkarma.com or www.freecreditreport.com that you can go to that will run your credit score yearly and for free. The great thing is that you won’t take a hit to your score by using these sites and you can keep an eye on it to make sure that everything that is on it is legit. Although, if you are buying a house, the lender that you decide to work with will require running their own credit report. This will be good for up to 90 days for the purchase. Once you are sure that you would like to start the process of buying a home, have a conversation with your lender. Provide him/her with the necessary documents they ask for so you can have your pre-approval ready to go.
Typically, the better your credit score is the better interest rate you will receive for your loan when buying a house.
How Credit Scores Affect Interest Rates
The lower your credit score the higher the interest rate you will receive on a loan program. Lenders will see you as a higher risk borrower. However, they are still willing to risk it by giving you a loan. It will just cost you a little more than someone with stellar credit.
How To Increase Your Credit Score
* Paying bills on time
* Keep balances as low as possible
* Pay off a credit card instead of transferring to another credit card
* Don’t open new credit cards and don’t close any unused credit cards for now
Depending on what the score is, there are different loan programs for you. Although your interest rate may be a little higher, you will still be able to get a loan if your income is good and can show that you can afford the monthly payments.
Can Credit Score of 580 Get a Mortgage?
You can still get a loan with as little as 3.5% down if your credit score is 580. Even if your credit score is poor or fair, it’s not as hard as you may think in some cases to increase your score. We can set you up with an experienced lender that can help you raise your score very quickly so that buying a house is in your near future.
The McT Real Estate Group would love to help you with your next home purchase when the time comes. Please know that we have incredible lender recommendations for you when you are ready. It’s important that you get prequalified prior to viewing homes so we know what your budget is and so that you will be ready to write an offer when we find the home you wish to buy.
If you like we can have one of our lenders contact you and go over different options for you. Just let us know! If you have any questions and please do not hesitate to reach out to us right away.