Bad Credit Mortgage Loans How Does Your Fico Credit Score Affect Your Loan Approval



Bad Credit Mortgage Loans How Does Your Fico Credit Score Affect Your
Loan Approval

Bad Credit Mortgage Loans - How Does Your Fico Credit Score Affect Your Loan Approval?
How bad is​ bad credit? If you​ can pull your credit report yourself and get a​ copy of​ your FICO credit score,​ that will give you​ a​ good idea .​
Here is​ a​ general idea of​ the​ FICO score breakdown:
500 – 580 - Poor Credit - you​ should be able to​ get a​ home mortgage loan if​ you​ are willing to​ make a​ down payment,​ probably somewhere between 5-20% .​
You will probably need a​ sub-prime mortgage loan with a​ slightly higher interest rate.
580 - 620 - Fair Credit - You're right on​ the​ edge .​
You may be able to​ get 100% financing or​ you​ may need a​ small down payment to​ make the​ loan work .​
Depending on​ how much money you​ put down,​ you​ may be able to​ get prime interest rate.
620 - 640 Average Credit -You should get a​ 100% home loan financing .​
You should not need to​ have a​ down payment .​
You should be able to​ get a​ low interest rate.
640 - 700 Good Credit - you​ should be able to​ be approved for a​ 100 - 125% home mortgage loan .​
You should be able to​ get a​ great interest rate.
700+ Excellent Credit - You’re in​ the​ drivers seat! you​ should be able to​ get an​ excellent rate with excellent terms .​
Of course,​ all of​ these factors vary with each borrower depending on​ the​ size of​ loan you​ want and on​ your income and other factors.
What is​ the​ FICO Score Based On? Most of​ the​ FICO score is​ dependent on​ amounts owed and payment history .​
So,​ the​ fastest and best way to​ increase your credit score will be to​ make payments on​ time and keep old accounts open.
What Should I​ Avoid to​ Keep My Score High? If you​ are in​ the​ process of​ getting a​ new mortgage loan,​ avoid applying for or​ opening any new credit accounts .​
This can drop your credit score very quickly and make it​ that much harder to​ get approved.

Bad Credit Mortgage Loans How Does Your Fico Credit Score Affect Your
Loan Approval





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