Just a few years ago getting a home mortgage was easy, regardless of credit rating or income. It seemed like anyone could be a homeowner which is what triggered the mortgage crisis we are all currently going through. The greed of the mortgage lenders and banks led them to approve anyone they could, and just a few years later, the floor fell out. So, a question that is often asked today is “What is the minimum credit score I need to get a home mortgage?”

Typically, if you have a credit rating below 650, you will face more obstacles when attempting to get approved for a mortgage with half way decent terms, conditions, and interest rates. However, do not let this deter you from pursuing a home mortgage approval. Improving your credit score, even slightly, can equal big savings when applying for a home loan. Every single percentage point of interest you can save equals hundreds of dollars in savings, so it adds up very quickly. Try to pay off any smaller lingering debts that you can first, then attempt to pay down your other debts. Truth be told, a lot of people actually can pay off a large portion of their debts, but choose to make minimum payments and keep the cash in their pockets instead. This is a bad financial decision to make and is usually bad on your credit score. While making the minimum payments is technically OK, it shows no extra effort to pay down your debts. Try to pay down your credit cards to within 25% of their maximum limit, if not more. This proves you will not overextend yourself or credit and can be a responsible, mortgage paying, home owner.

So, to sum it up, getting a home mortgage, regardless of credit score, can vary greatly from person to person and place to place, but a score over 650 will help a lot and make things easier. Keep in mind though that obtaining a home mortgage with a credit rating lower than 650 is not at all impossible, it just takes a little more time and some research that can be easily done on the internet.

-M Petrone

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