One of the first things a lender will want to know about you when applying for a mortgage is your credit score.
Your credit score will have a huge impact on the interest rate you'll be charged on your mortgage as well as the dollar amount of your monthly payment.
This is directly related to you attaining the best mortgage rate! So obviously you should work towards getting the highest credit score possible, which puts you in the best position to negotiate the best mortgage rate.
Remember! A bad credit score doesn't mean you're a bad person or is something to be embarrassed about - it's simply a number that rates your timeliness regarding paying your bills, ie...
revolving creditcards, car payment etc...
The difference in 30 points on your credit score has a strong impact on you achieving the best mortgage rate as well as strong financial implications that are worth noting.
For example, say your credit report from the 3 big credit rating companies ( Experian, Equifax and Trans Union) give you a 670 score.
This may qualify you for a 30 year fixed mortgage at 6.
5%.
Now, say your score was a little better - 700.
This infers you are a better credit candidate, and are awarded a 5.
5% interest rate for the same loan.
This decrease of one point in interest will save you a ton of money -$51,760 savings, just for having a better credit score! So...
the best credit score = best mortgage rate = lower monthly mortgage bill.
So to insure you get the best mortgage rate possible make sure your credit score is the best it can be.
It may be wise in some cases to delay the mortgage process and repair your credit - then go through the application process.
If you have poor credit don't despair! There are many ways to fix less than perfect credit - which is your ticket to the best mortgage rate.