Important Credit Information

What lenders need to know about your credit to give you a mortgage:

 (1) Banks require you have held at least three lines of credit for the past two years.

(2) A credit score of 720 or higher indicates to lenders that you are responsible with credit, allowing you to be extended the best rate.

(3) Lenders will typically obtain three credit reports from different bureaus and use the average of the highest and lowest scores to determine the applicant's credit. This number may be different from the one that you obtain through an online credit report.

 

What you need to know about your credit to get the best mortgage rate:

 (1) Don’t use more than 50% of your credit line on any of your credit cards.

 (2) Keep your credit inquires down by not making any major purchases or applying for other loans.

(3) Don’t increase credit limits while applying for a mortgage because it can be viewed as a inquiry and may lower your score.