Everywhere you hear “You need to get pre-qualified for a mortgage before you buy a house.” Then you talk to someone else and they say “No! You need to get pre-approved for a mortgage.”
Which is it? Well, it’s both really but for very different purposes. Continue reading
If you’re thinking of buying a home, one of the first questions you may ask is “Can I qualify for a home mortgage loan?” There are a number of factors that determine the answer, such as your employment history (including length of time at your current job), your debt to income ratio (how much you owe compare to how much you make), and the amount you have for a down payment. But perhaps the biggest factor in determining your loan eligibility is your credit score.
There are actually a few different types of credit scores. The score used by the mortgage industry is your FICO score, which for housing loans ranges from 300-850. This range is broken into categories ranging from “Excellent” to “Bad”.
Photo Credit: Credit Sesame
The obvious question is “what credit score is needed to buy a house?”
Unfortunately, the answer isn’t as obvious. Continue reading