The basics of mortgage approval [Video]
Posted on Tuesday, October 11, 2016 at 2:21:00 PM
The rates and terms of mortgages - as well as approval of such programs - are highly defined by a range of factors both from the lender and the borrower. In most instances, though, consumers will need to have strong credit scores to acquire the most preferable mortgage, meaning that knowledge of managing scores can be invaluable.
The Los Angeles Times recently explained some of the differences in average interest rates attached to loans when either given to a consumer with a low credit score or a high one. According to the news provider, a 100-point difference - between 780 and 680 on the FICO score - can translate to a difference of 0.25 percent on the mortgage's interest rate, which means big money.
At the same time, the source pointed out that getting denied - or approved with a high interest rate - should not be taken in stride. Instead, consumers should shop around for the best deal possible.
Always consider working with a smaller financial institution to better manage credit scores and navigate the mortgage and lending markets.