When applying for a home mortgage loan, one of the most important items is your credit score. Mortgage lenders use your credit score to determine not only whether you get the loan, but also to decide what mortgage interest and other terms will accompany it.

Check your credit report

Before applying for a home mortgage loan, it is a good idea to check your credit report. You want to fix mistakes on your credit report, as well as get an idea of whether you will need to take steps to improve your credit score. Be aware that in the currency lending climate, you will likely need a higher credit score. Many subprime loans (they are still being offered in some places) require at least a 670, and if you want a good mortgage interest rate, you will need at least a 700. Some lenders want even higher scores. Requirements vary, so ask around.

Stay away from more debt

With economy likely headed for a recession, if you are not careful, you might find it more difficult to make debt payments. Now is the time for you to do your best to get things in order and re-do your finances to avoid more debt. Debt (and inability to pay it) can cause a great plunge to your credit score. It may be a buyer’s market right now, but you can’t take advantage of it if your credit score is ruined.

Tags: mortgage loan blog, applying home mortgage, home mortgage loan, credit score,
check credit report, recession, improve credit score

Tags: applying home mortgage, check credit report, credit score, home mortgage loan, improve credit score, mortgage loan blog, recession