Most people never even think about their credit score until they see one of those TV commercials advertising free credit reports.
But, if you’re in the market to buy or rent a New Orleans home, it’s one of the most important numbers you have.
What does your credit score measure?
Your credit score is calculated by an algorithm to measure the amount of debt you can carry, the risk that you’ll pay or not pay back a loan and your ability to afford the particular loan you are applying for.
Understand what your credit score impacts
- Interest rates – the lower your score, the higher the interest rate can be for loans and insurance
- The amount you can borrow – based on what you already owe, some companies may decline to push your potential obligations higher
- Mortgage lending terms – while some lenders are willing to work with lower credit scores, they will often charge a higher interest rate or even require a bigger down payment
PRO TIP: Check your score before embarking on the house hunting process, since it can take as long as 60-90 days to have incorrect information removed. If your credit score is 650 or higher, you will meet the minimum score for almost every lending product.
Also read: How to improve your credit score
Need a lender to walk you through the credit process? Call us today at 504-327-5303 and we’ll match you with a loan officer experienced in working with first time home buyers.