It seems like the importance of a better credit score getting stronger as mortgage lenders tighten mortgage loan approval requirements for home buyers that I work with in Mesa and around the southeast valley. Credit scores not only make the difference between a mortgage approval and mortgage turn-down, but they also play a large role in determining your actual mortgage interest rate and discount points that you may have to pay to get the rate you want.
In the 3-minute piece, the NBC Today Show talked about 7 ways that homebuyers ruin their credit — often by accident. Some of the highlighted mistakes include:
- Closing open credit cards
- Buying appliances during the mortgage application process and just prior to closing
- Asking creditors to lower credit balances prior to closing
In general, if you have a 740 FICO or above, you will most likely qualify for the best interest rates and programs with the lowest fees. Below 740, though, every 20 points adds to the damage. Watch the video and apply what you can to your own situation. The more you know, the more you can save.
