Shoppers should think twice about opening a new credit card when preparing to purchase a home. It’s expensive to have a low credit score – more expensive than the money saved by opening a card at the mall.
Mortgage approvals are based on a borrowers income, down payment or equity, and credit rating. Without all three, the best possible rates are untouchable due to risk based pricing penalties. Is it time to do something about your credit score?
The company behind the popular FICO scoring model has published a “What If?” series for common, specific credit missteps. With minimum FICO score requirements increasing to 640, you need to plan a head with an experienced Loan Officer on what steps you need to take.