How Much Does A Credit Score Count In Qualifying For A Loan?
Whether you are applying for a mortgage to purchase or refinance your home, a good credit history is essential. During the approval process, lenders must determine that you will be able and willing to repay the mortgage debt. To ensure that you will be able to pay off the debt, lenders may look at many factors, including: * Employment history * Income and outstanding debt * Savings patterns and amount of savings * The type and amount of loan requested * The amount of down payment or the existing equity in the property To ensure that you will be willing to pay off the debt, lenders typically look at your credit report and credit score. Your credit score predicts how likely you are to repay the mortgage debt. Lenders will use your credit score to help them determine: * What loan types you are eligible for * Whether to approve your loan * What your interest rate will be.
