Best Mortgage Rates For Your Credit Score

While mortgage rates continue to be at all time lows, your credit score still plays a critical role in getting approved for the best possible rates. As banks have been forced to be more selective with the people they lend money to, it is harder than ever before to get a home mortgage or refinance. Getting approved for the best possible rates is even harder.



When applying for a loan, your credit score is the most important part of getting approved for a mortgage.



What used to be a good credit score is now only considered fair credit, and the standards to achieve excellent credit are even higher. For instance, while a 720 is about the average credit score and in the past it would qualify for the best possible rates, it could be difficult to get approved for a loan today.



Knowing where you stand can help you prepare for buying a new home or refinancing your current home mortgage. If you are surprised to see your score is lower than you expected it to be, there are a number of things you can do to quickly increase it to get the loan you need.



The firs step is knowing where you stand on the credit rating scale. From there you can do what is necessary to make sure you get approved for the best mortgage rates. Doing so will save you hundreds of dollars a month and several thousand dollars a year. This savings is money that you would otherwise be just giving away to banks for paying a higher interest rate on your home. Make sure you are putting more money towards owning equity in your home and paying less money in interest.