Good credit is the foundation of mortgage lending. Look at it this way, if it was your money,who would you rather lend it to, someone who has a history of meeting their obligations in a timely manner or someone who doesn't?
The best rates are offered on programs insured by the mortgage backed securities, Fannie Mae and Freddie Mac. These agencies set credit standards that borrowers must meet in order to qualify for financing. The rule of thumb is that the higher your credit score, the higher loan to value (less down payment) program s you may qualify for and the better the rate available.
Other first time buyer programs like FHA may not be score driven but credit is still a consideration.
Best advice? Spend the next couple of years getting your credit cleaned up so that you are correctly positioned to take full advantage of the opportunities available.
20+ years as a direct mortgage lender
· 1 decade ago