Good Mortgage Rates Require Good Credit

Mortgage lenders and brokers are going to great lengths to acquire business in the current market. A lot of mortgage professionals are advertising great rates, even amid all the inflation going on. But one way they can wiggle out of the “assured” rates is by a person’s credit rating. In the mortgage market, a credit rating can be the difference between a few points and a few hundred dollars on a mortgage.

Consumers should be aware of their credit score before entering the muddy waters of mortgages. The national average score is 680 on a scale of 450-850; the higher the score the better. Most borrowers that have a 680 or higher will qualify for average rates. Those with scores over 700 normally qualify for more money or lower rates. Those below a 620 may have trouble getting a decent rate or a mortgage at all depending on the lender. A good credit score can be utilized to drop a rate or qualify for different mortgages and should always be know as a negotiating tool.