It sure does! Your credit score is a fast pass to great mortgage rates and excellent terms. It’s essentially proof that you can be trusted to make payments if you’re given a loan of any kind. A high credit score means you’ll get access to the best mortgage rates on the market and have more flexibility when it comes to the terms and conditions associated with a mortgage. It also means you could save upward of six figures worth of interest over the course of your lifetime!
Since credit scores have become an integral part of our financial lives, it’s more important than ever to keep track of yours and understand how your actions affect the numbers.
As your mortgage broker, I am looking at the monthly living costs of your potential new home and your current sources of debt. Can you make the necessary payments regularly or will your debt hold you back? It’s important to note that you don’t have to be perfect, but if you’re strong in the areas that matter most to lenders, it can help make the mortgage approval process much smoother.
Credit scores have a huge impact on what mortgage rates you qualify for and your overall approval process. If you haven’t already, you need to learn more about your personal credit score.
If you are able to hold off on buying a home in the short term, take some time to work on repairing and improving your credit score before you start seeking out preapprovals so you can feel confident that you’re getting the best rates possible.