#where to get your credit score
Check your Credit Report Credit Score
- Inability to get a loan
- Higher interest rate if you do get the loan
- Larger down payment required if you do get the loan
You generally need a credit score of at least 660 to get a mortgage. Not too long ago you could get a loan with as little as 580, but banks are more cautious these days because of the mortgage crisis (which was caused by lending to folks with low credit scores who ultimately defaulted on their loans).
Your credit score doesn’t just dictate whether you can get a loan, it also impacts how good an interest rate you get. The worse your credit score, the higher the rate of interest. You might also have to have a larger down payment than otherwise. This bears repeating: Bad credit doesn’t just mean you might not get the loan in the first place, it means that if you do get the loan, you’ll have to pay more interest, and you’ll be required to make a larger down payment.
620 – 639
Payment based on $200k home, 5% down, PMI, closing costs rolled into mortgage, includes estimated taxes + insurance.
Loans are not generally available to those with credit scores below 660. From MyFice.com, 2009.
The higher your credit score, the less you’ll pay for your mortgage. The lower your score, the more you’ll pay. So, improve your score as much as possible, with the tips we’ll cover soon.