A Real Estate Agent in Merrick Explains Why a Credit Score Is Important When Getting a Mortgage

March 3, 2021

If you are going to work with a real estate agent in Merrick to purchase a home, you will first
want to take a look at your credit score. After all, when it comes to buying a house, know that
your credit score is one of the most important factors that lenders will consider when you go to
apply for a mortgage.

Are you aware of what your credit score should be when it comes to buying a home?
We understand just how important it is to have a good credit score when getting a mortgage!
That’s why, here at Kim Holland Homes, as a real estate agent in Merrick, we have comprised
some insight as to why a credit score is such an important aspect of the mortgage-obtaining
process. So, if you are all set to learn more, be sure to read on:

● How to Begin: Before you venture out and start applying for a mortgage, you will want
to check your credit score. By pulling your credit reports from the three major credit
agencies (Equifax, Experian, and TransUnion), you can discover where you are at when it
comes to your credit, so that you can ensure that you are good to begin the process for
obtaining a mortgage, or figure out what you need to do to raise your score so that you
can be at the right spot.

● What is a Good Credit Score? First off, know that the higher your credit score, the lower
your interest rates will be when it comes to your mortgage. When lenders view your
credit score, they often use the FICO model, which grades on a 300 to 850-point range.
The higher the credit score, the better, as it will show less risk to the lender. The credit
score point range is as follows, and it’s best that you are in an exceptional or very good

o Exceptional: 800 or higher
o Very Good: 740-799
o Good: 670-739
o Fair: 580-669
o Poor: 579 or lower

● Do You Have to Have a Specific Credit Score? There is no mandatory credit score that
must be presented when trying to obtain a mortgage, as it all depends on the lender
and if they will work with you or not. However, know that in most cases, lenders
typically present borrowers with very low scores, very high interest rates, which isn’t
ideal. Therefore, if your credit score isn’t where it should be, it’s best to take the time to
repair it, rather than jumping the gun and getting stuck paying way more in interest.
A great credit score is certainly of importance if you are trying to obtain a mortgage! These are
just a few pointers to get you headed in the right direction.

Are you ready to work with a real estate agent in Merrick to buy or sell a home with? If so,
please take a moment to get in touch with us here at Kim Holland Homes, as we are all set to be