How Important is a Credit Score Anyway?
As mortgage lenders continue tightening approval standards in Iowa and nationwide, the importance of a good credit score is extremely high. Credit scores not only make the difference between a mortgage approval and mortgage turn-down, but they also play a large role in determining your actual mortgage note rate. Seriously, this advice could save you thousands of dollars over the life of your new loan.
In the 3-minute piece, the NBC Today Show talks about seven ways that homebuyers goof up their credit — sometimes on accident! Some of the highlighted mistakes include:
- Closing open credit cards
- Making appliance buys on credit prior to closing
- Asking creditors to lower credit balances prior to closing
Generally speaking, a 740 FICO will insulate a borrower from the higher costs and/or interest rates associated with low credit scores. Below 740, though, every 20 points adds to the fees and/or rate. Watch this video and apply what you can to your own situation. The more you know, the more you can save.
If you’re currently considering getting a loan, and wondering where your rate will fall, give us a call! We’d love to help you out. Give us a call at 515-257-6729 or email me. I LOVE this stuff.
