Good morning all. One more day until the weekend. I hope you’ve had a good week so far. Today’s post is about something that a lot of people dream of doing one day – owning a home. But before you can own a home, you want to find the best home loan rate that you can find.
I have found an article on Trib Live that gives some great tips on getting the best home loan rate. Below is one of the tips that the article offers.
SIZE UP YOUR CREDIT
Mortgage lenders consider three key factors to determine what rate they can offer a borrower: Good credit, proof of income and size of the down payment. Strength in one category can offset a deficiency in another, but having a FICO score of 740 or better out of 850 will generally qualify borrowers for the lowest mortgage rate.
You can qualify for a home loan with a lower credit score, but you’ll pay a higher interest rate.
If your FICO is below 740, review copies of your credit files for errors that may be weighing down your score. Consumers are entitled to a free credit report every 12 months from the three major credit-reporting firms — Equifax, TransUnion and Experian. Go to annualcreditreport.com.
The credit firms are required to respond to error disputes within 30 days, so it pays to do this well in advance of when you intend to buy a home. Think at least six to eight weeks.
The ratio between available credit and how much debt you’re carrying is another key element of the FICO score. A good rule of thumb is to keep debt at less than half of your available credit. Reducing that ratio alone can often bump up your score.
If you would like to get a home loan at a good rate, use the tips that are in this article to help you find the best one. I hope you have found this article helpful and that you will share it with other people who can benefit from it. I will be back tomorrow with another great post for you.