Call or email me for a free credit pull and complete analysis, then I will send you a copy too!
As a general rule, interest rates are higher on higher risk loans. So, higher LTV’s and lower credit scores and derogatory credit will likely increase the interest rate and the costs you will have access to.
Of the 3 credit bureaus, the score that falls in the middle is called the “mid score” and is what lenders use to qualify your loan.
Credit scores generally impact mortgage loan interest rates in tiers of 20 pts after the lowest score tiers are exceeded. So, starting at 550 for a very difficult, but possible, FHA loan….the next tier would be 580, still very difficult to qualify.
Then 600, much easier but not great rates. 620 is a big one, getting past the 620 mark at least opens up many more lenders. 640 then is really the most generally accepted mark in all of lending. The rates, costs, risk, underwriting, etc. is all a bit more extensive at the lower scores.
From there it goes up every 20 pts until you hit 740+ which allows access to the best mortgage loan products, the lowest rates, and the lowest costs.
Tips and tricks to raise your scores:
- -Keep your credit card balances under 40% of the limit on your revolving credit debt like credit cards…
- -You could theoretically pay all of your bills 29 days late and your credit would never suffer, they cannot report to credit any derogatory information until you are 30+ days late…
- -Check your credit every couple of months, often there are little sign-up fees and medical co-pays and stuff you would never know about reporting to collection agencies in error, hurting your scores!
- -After a shortsale or foreclosure or bankruptcy, be sure to have someone pull your credit a couple months later, more often than not they don’t report those things correctly and it will continue to decrease your scores even after it’s all over with!
- -With about 15-20 minutes by phone with me, I can usually give you specific dollar amounts to pay down on various debts to increase your scores very quickly with a “rapid rescore” and I can tell you exactly what the end result of the re-score will be. I can help you do this about 2 weeks in most cases.