When you’re applying for a mortgage, your credit score, and what’s on your credit report, are a couple of the pieces that determine whether you can get a mortgage, and what rate you will pay when you get one. Not everyone knows that these are two separate things. What is on your credit report is what your credit score is based on. Higher scores show that you have a better credit history and thus giving you lower rate eligibility.
You may be able to get different rates from different sources, but mortgages are based on FICO. The Home Loan Expert, Ryan Kelley, looks at all three major credit reporting agencies – Equifax, Experian, and TransUnion to determine your score, as they can all be different.
Make sure that your credit report is free from errors before you apply, because these can really hurt your score and cost you money on your mortgage. Check your credit before you apply to fix these errors with all 3 reporting agencies or you could end up paying thousands extra. Also make sure that you don’t apply for a lot of credit right before you apply, because that can lower your scores.
The credit score is only one part of our decision, but it’s an important one.
Other factors include:
- Credit report
- Credit history with that lender
- The amount of debt you already have
- How much you have in savings
- Your total assets
- Current income
The Home Loan Expert is dedicated to getting the best loan at the lowest rate for everyone who walks through the door or applies online. Call us today at our Indianapolis office at 317-550-1515 or apply online at www.thehomeloanexpert.com right now. Nobody makes it easier to refinance your mortgage or purchase a new home than The Home Loan Expert, Ryan Kelley.