QandAs: Loans

What Does My Credit Score Have to do With my Mortgage?

Answer:
Your credit score is one way in which

a mortgage company might make a decision on whether or not to lend you funding for a mortgage. Depending on the economy, even a great credit score might not clench a mortgage deal for you. You’ll need to show that your credit score is that of an excellent rating. (A credit score is often known as a FICO score.) Mortgage lenders must factor several things before they agree to lend you the money for a mortgage. Of course, the better your credit score is – the better your mortgage rate should be.

There are three big credit reporting agencies and each agency scores can vary slightly. If you’re in the market for a mortgage, it might be beneficial for you to review your credit reports from the big three credit reporting agencies: Equifax, Experian and Trans Union. Because mortgage rates are extremely volatile it might behoove you to lock in a specific rate if possible when shopping for a mortgage loan.