It’s very important to check your credit as the first step in the mortgage process, as your credit history can affect what types of loan programs your lender will offer you. The type of loan will also affect the interest rate you’ll receive.
You can get one free credit report each year at www.annualcreditreport.com. If your free credit report does not contain your credit score, you can purchase your credit score directly from the three major credit bureaus:
What is a Good Credit Score?
Credit scores typically range from 300 to 850. The credit bureaus (Equifax, TransUnion and Experian) assign a numerical value to different items in your credit history, then apply a formula to calculate your score. Because each of the three major credit bureaus use a different formula to calculate credit scores, the score reported by one bureau may vary slightly from the scores reported by the others.
In general, credit scores close to 700 and above 700 are considered good. Scores close to 800 and above 800 are considered excellent. According to the Consumer Financial Protection Bureau (CFPB), you will likely pay more for a mortgage if your credit score is below 700.
Learn more about credit reports and the mortgage process. Contact Freedom Mortgage when you are ready to apply for a loan.