As mortgage lenders tighten approval standards in Arkansas and nationwide, the importance of a good credit score is rising. Credit scores not only make the difference between a mortgage approval and mortgage turn-down, but they also play a large role in determining your actual mortgage note rate.
In the 3-minute piece, the NBC Today Show talks about 7 ways that homebuyers ruin their credit — often by accident. Some of the highlighted mistakes include:
- Closing open credit cards
- Making appliance buys on credit prior to closing
- Asking creditors to lower credit balances prior to closing
In general, a 740 FICO will insulate a borrower from the higher costs and/or rates associated with low credit scores. Below 740, though, every 20 points adds to the damage. Watch the video and apply what you can to your own situation. The more you know, the more you can save.
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David Lukas is an active loan officer and can be reached by calling 501-952-3090 or David@DavidLukas.com
David Lukas is an active loan officer and can be reached at David@DavidLukas.com or by calling 501-952-3090. Also be sure to visit www.DavidLukas.com
