When it comes to buying a home, your credit score plays a crucial role in determining not just whether you qualify for a mortgage, but how much you'll pay over the life of the loan.
The Credit Score Threshold
Most conventional lenders require a minimum credit score of 620 for a conventional mortgage. FHA loans may be available with scores as low as 580. However, the best rates are typically reserved for borrowers with scores of 740 or higher.
How Much Your Score Costs You
The difference between a good and excellent credit score can mean tens of thousands of dollars over the life of a 30-year mortgage. For example, on a $300,000 loan, the difference between a 4.5% and 3.5% rate is over $60,000 in total interest.
Improving Your Score Before Applying
If you're planning to buy a home, start working on your credit score at least 6-12 months before applying. Even small improvements can make a significant difference in your rate.
Contact Us for Help
Frontier Credit Repair specializes in helping future homebuyers improve their credit scores. Contact us for a free credit analysis and personalized improvement plan.