Credit score, is an indicator that tells about someone’s financial behavior in a given time, lenders use the credit score as a way to measure the risk it represents to them when dealing with a borrower.
What is your credit score?
- Excellent Credit: 750+
- Good Credit: 700-749
- Fair Credit: 650-699
- Poor Credit: 600-649
- Bad Credit: below 600
If you have a higher credit score, then lending your represents a lower risk for the lender, therefore, lower rates can be offered to them in a mortgage loan.
However, a credit score is not the only conditions for lenders to accept and approve a request for a mortgage loan, since they must have their own measurement methods, including credit history that is also known as credit rating.
Mortgage products like cash back mortgage or zero down payment mortgage among others may not be available to lower credit score borrowers or borrowers with a poor credit history reflected in their credit rating
Many lenders offer different mortgage loans products with different guidelines and to differentiate themselves from their competition, it is the duty of the mortgage agent to search among the different lenders for one that can satisfy the mortgage lending needs of the different borrowers