Are you thinking about getting into the housing market? Whether you are just beginning to think about buying a new home, or ready to run to the bank to be pre-approved, you'll need a good credit score in order to get a mortgage.
Credit scores range from 300-900. The higher the number the better and the more likely you'll be approved for a mortgage. If you're wondering how they determine your credit score, I previously wrote a blog about the 5 main factors in how your credit score is calculated.
For most lenders, your credit score needs to be 650 in order to be approved for a mortgage. A score of 750 or better is considered an excellent score. A credit score of under 650 doesn't mean that you won't qualify for a mortgage. It may mean however, that not all lenders will be willing to give a mortgage and an alternate lender may charge a higher interest rate, which means higher payments for the same mortgage amount.
If your credit score isn't quite high enough to secure a mortgage, here are 7 great tips to help increase your credit score.
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