Credit Scores Have Major Impact on Mortgages by Brad Schmett

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Brad Schmett of Luxury Homes by Keller Williams has today announced that credit scores, while always an important element of home buying, are now having a major impact on obtaining mortgages as well as on individual mortgage interest rates as the real estate market begins to rebound. More stringent qualifications for home loans are behind the trend.

Credit Scores Have Major Impact on Mortgages

Credit Scores Have Major Impact on Mortgages

A strong FICO score is absolutely essential to getting the best possible interest rate on a home loan.

Brad Schmett, Broker Associate with Luxury Homes by Keller Williams today announced that real estate professionals should encourage their clients to optimize their credit scores prior to applying for home financing packages. Stricter guidelines following the recent real estate slowdown require careful attention to optimizing FICO scores.

Building and maintaining strong credit histories has never been more important than over the past couple of years. Following a real estate market recession that affected every aspect of home buying and selling, stricter guidelines for obtaining mortgages have been put into place. Record numbers of foreclosures have left many consumers with serious credit deficiencies.

Schmett recently observed that, “A strong FICO score is absolutely essential to getting the best possible interest rate on a home loan. Even though rates are still at historic lows, lenders are scrutinizing credit reports more than ever. My team is making sure that our buyers are fully prepared with optimum credit scores prior to applying for mortgage loans. Given that many of the homes we represent are in the more expensive luxury category, it is essential that our buyers are well prepared.”

Among the criteria for home loan eligibility are credit history, amounts owed on credit cards, prior mortgage history, outstanding judgments or foreclosures, steady employment of at least two years, amount of down payment, and established lines of credit. Low credit scores will result in higher interest rates or even in denial of a home loan. Potential buyers should always access a full credit report that includes all three major bureaus as well as public records at least once a year. Correcting errors frequently and paying accounts on time are both critical to maintaining a good credit score. It is also recommended that potential buyers consult with the lender ahead of time for recommendations on how to optimize their FICO score.

To find out more about investing in La Quinta, CA real estate visit palmdesertrealestateinfo.com.

About Luxury Homes by Keller Williams: Luxury Homes by Keller Williams – La Quinta, is an exclusive, elite and sophisticated group of real estate consultants raising the bar for service in the upper-tier La Quinta and Palm Desert area residential real estate market.

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