Credit score needed to purchase a home: 3CALOAN
A credit score is that little three-digit numbers which are very crucial to your financial well-being. Can credit score affect your life or not? and do you have any control over it or not? In this guide, we will clear all your doubts and find the answers to all your questions. Let’s take a look at how much credit score needed to purchase a home, how a credit score can hurt you, how to do your credit score look better.
What Is a Good Credit Score?
Credit score ranges are from 350-800. Credit score of 700 or above will be considered as best and 800 will be excellent for a mortgage. To obtain a good credit score you have to pay your bills on time so that your credit score will be high.
Credit Score Ranges at a Glance
The two credit scores are those issued by Vantage Score and Fair Isaac Corp. (FICO), and each uses a range of 300-850. If you don’t know which range is a good for you, here’s a quick look at what’s considered an excellent, good, fair, and poor credit score.
Poor Ranges: 300-650
At the point where you have a score of 650 that indicates you will have a harder time qualifying for loans. Your lender will consider you a much greater risk because of your score. In this score, you will have to pay higher interest rates.
Fair Ranges: 651-700
You will approved for credit but likely not at competitive rates.
Good Ranges: 701-759
With this score, you will possibly get approved for whatever you will apply for but there is no surety that you will get the best offer the lender has to offer.
Excellent Ranges: 760 and above
If you have a score of 720 then it will be enough for you to get best interest rates. If you have a score above 760 then it will be considered as an excellent credit score which a person can get. It will be best range to get the best mortgage rates.
Can you buy a home if your credit is bad?
There are loans programs, which are intended to help people with a lower credit score to purchase a home. Federal Housing Administration (FHA) loans have a portion of the least FICO credit score necessities at 580 with a 3.5% down payment.
What’s a good credit score to refinance a mortgage?
In principle, there is no set FICO score to qualify for a streamline refinance. However, if you replace a non-FHA home loan with an FHA loan, the lender will require a FICO score of 580. Others may ask the score to be even higher.
Final Thoughts
A credit score is a very important thing while financing a loan. It can save you money if you have a good range of score and take advantage of the lower rates/terms that are available. Think about the big picture. If you have any question about what credit score needed for your mortgage. Feel free to contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.
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