Home buying process could be an easy task with a mortgage loan. These key factors to know before applying for mortgage or home equity loan can help you a lot.
If you are soon going to purchase a home without paying cash, than you need to get a mortgage loan.
Getting a mortgage to purchase your dream home is perhaps the most critical financial decisions that you will be going to make.
Therefore, it is very essential for a mortgage applicant to know all key factors related to getting a perfect mortgage at lowest possible interest rate. Here are 10 key factors to know before applying for mortgage or home equity loan:
(1) Credit Scores
It is one of the most critical factors to know before applying for mortgage. Credit scores or FICO scores play a major role in getting a loan against property. It is a number between 300 to 850 – the higher the number, the more creditworthy the candidate is considered to be.
Generally, a credit score of 660 or above is considered as prime. On the other hand, credit score of 600 or below is considered to be subprime.
If your credit score is 660 or above, than you will easily be qualified for a mortgage with a lower interest rate.
If your credit score is 600 or below, than you will be facing difficulties in getting approval for a mortgage even at higher interest rate.
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