Your credit history is a major factor in your ability to obtain a mortgage loan. Lenders will obtain a copy of your credit report and use your credit scores to help in the underwriting process.
Your credit score is an important factor in the mortgage loan process, especially when it comes to interest rates. A higher credit score means lower interest rates. There are services where you can get your credit score and credit report for free. To see where you stand financially, request a free credit report today.
Credit scores are numerical values that rank individuals according to their credit history at a given point in time. Your score is based on your past payment history, the amount of credit you have outstanding, and the amount of credit you have available.
Lenders use a process called underwriting, which is evaluating your ability and willingness to repay your loan. They judge your ability to repay by looking at the amount of your income, how stable your past earnings have been and your past credit history.
This helps them to determine if you can afford the loan payments. If you have made payments on time in the past and have a clean credit report to show for it, you will be judged as being trusted to make payments of time in the future.
Before trying to secure a loan, it is best to obtain a copy of your report, view the credit score, and work diligently to repair a low score. Once you have a solid credit report, then it is time to think about a mortgage loan.
Do you have more questions about the mortgage refinancing loan application process? Click on a question below to get the answers you need to make informed, educated financial decisions.
- How Should I Approach the Process of Applying for a Loan to Refinance My Mortgage?
- What Documents Do I Need to Have Available to Apply for a Loan?
- What Do Mortgage Lenders Look for in Loan Applicants?
- What Mistakes Should I Avoid in the Loan Application Process?
- Does My Credit History Effect My Ability to Get A Mortgage Loan?
- Does My Income Effect My Ability to Get A Mortgage Loan?
- What Happens After I Submit My Application?
- How Should I Approach Making a Down Payment and the LTV Ratio?
- Why Is Locking In My Interest Rate So Important?
This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.