| When you apply for a mortgage loan, your credit is | | | | less lightly to default on your loan, you will make your |
| one of the main factors that lenders consider if they | | | | payments on time and they will get their investment |
| are going to approve your loan or not. The other | | | | back in the long run. |
| factors are your income, savings and if you have any | | | | With a lower score, it tells them that you might be a |
| other assets such as stocks, bonds, or other assets. | | | | high risk and they might end up having to foreclose on |
| Your credit score not only affects if you will get | | | | the house, which they do not want to do. They in turn |
| approved for a loan but it is also the main factor that | | | | increase the interest rate to offset this risk. |
| determines what interest rate you will be able to obtain | | | | This is why it is a good idea to raise your credit score |
| from a lender. Lenders have a chart that have a credit | | | | to the highest possible number before you decide to |
| score and a corresponding interest rate right beside it. | | | | apply for a mortgage loan, you will end up with a |
| The higher the credit score, the lower the interest rate | | | | better interest rate which means a lower monthly |
| you will be able to secure for your mortgage loan. | | | | payment as well. There are a few ways to increase |
| Higher credit scores mean to the lender that you are | | | | your credit score and have a better credit rating. |