Jul 18, 2011

Significance of Credit Scores

Are you planning to buy a house where you plan to live most of your life? If you have a good credit then, obtaining a mortgage should not be too difficult. There is definitely an advantage to the person who has a good FICO score. This is the score that most lenders use to judge the credit worthiness of the borrower. A score of 640 or better will give you certain advantages such as low percentage of interest on your loan. This could be as low as 3.5% on your fixed 30 year mortgage.In the first quarter of 2011, nearly half of all mortgages went to people with credit scoresabove 750 on the FICO scale. .Back in 2005 your credit score did not really matter as much as it does today. In those days, you could get a loan by having a job and a Social Security number. Those were the days of easy credit. Mortgage lenders today are putting a lot of emphasis on the borrower's FICO score so; there is a definite advantage to having a good credit score when searching for a home mortgage. You can definitely see the advantage there of having a good credit score when obtaining a mortgage as lending has tightened. In a nutshell, a good credit score of 720 or over will help you qualify for the best interest rates. For more information, check out the link here.

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