Finding out and knowing what your credit score is can be an important step to take when looking to refinance your home or to buy a new home. By knowing what your credit score is beforehand you can have a good idea as to what type of financing you may qualify for. If you have a credit score above 800, you are among the elite of consumers. If your score is above 700, then you still should be able to maintain good financing terms. If your score is 600-700 your risk factor to a lender starts to increase some and depending on what type of mortgage program you are looking for you may qualify for the best rates or you may qualify for a rate ever so slightly higher than the best for that program. Credit scores in the 500-600 range can really vary your financing across the board from what programs you may qualify for, to the interest rates you will be eligible for to the amount of money you may qualify for. Anything under 500 and you may have some serious problems finding someone to provide mortgage loan financing for you. Therefore, contact a trusted mortgage consultant to find out what your credit score is when you begin shopping for a mortgage or go to one of the 3 main credit bureaus websites and request a credit report with your credit score on your own to find out where you might stand for home loan financing with your credit score.
It is not uncommon to see a significant variation in your credit score amongst the 3 credit bureaus. The difference between your highest and lowest score may be 60 points, and in some cases even more! Most mortgage programs will base your financing options off of your middle score to help account for some of the discrepancies.
Though most lenders are interested in your middle score, there are some that will average the three scores together or even take the highest of the three.
Everybody can get a copy of their credit report for free every year from each of the credit bureaus. These reports do not have your credit scores on them. To get your credit score, you have to pay. For about the same cost, you can contact a mortgage professional and have him or her run your credit report, get your credit score, review it with you and determine what home loans you could qualify for.
There is no need to feel nervous about reviewing your credit report with your mortgage professional. No matter how bad you think your report and score will be, your mortgage profesional has almost definitely seen worse.
Another confusing aspect of credit scoring is the fact that scores will vary depending on the type of financing you are seeking. Scores are usually higher when applying for a credit card or a car loan than when applying for a mortgage; a mortgage credit report is typically very strict and often reports lower scores.
Paying down credit cards is a good way to increase your credit scvore.