Purchase price? Loan amount? Monthly Payment? These are in fact all important numbers, but the number I’m referring to is your credit score. This is the very first number you should be focusing on.
Your credit score is one factor that will determine the interest rate you are eligible for. The others being your loan program, and down payment percentage. A one point difference in score, say from 719 to 720, could cost you hundreds of dollars a year, and possibly even thousands over the lifetime of the loan. That one point can be easy to pick up, but don’t wait until your ready to apply for the mortgage.
Don’t Use Free Credit Scores
If you’re truly in the market to purchase a home or refinance, don’t rely solely on those free credit reports that you see online. They can be good tools to use, however, scores from free credit reporting sites often differ from the mortgage scoring systems used by lenders, so it’s recommended you find out your scores directly from your lender or from a reputable credit scoring service. Give us a call at 718-226-5300 and get a FREE mortgage prequalification and credit evaluation when you mention our blog.