If you are considering getting home loans in Austin, you may wonder why your FICO score is important. Finding out your FICO or credit score can be a frightening concept. It can be like tossing your personals out on your front lawn for everyone to see. Luckily, monitoring your FICO score today is relatively easy. There are several different credit monitoring apps that can track, monitor, and report your credit score for you. While these apps are not entirely accurate, they are a fantastic tool for keeping track of where your credit stands.
How does your credit score impact your home loan options? First, your FICO score is an overview of your credit history. Credit scores range from between 300 and 850. A credit score of 300 indicates that you have significant credit issues and would likely miss or not make mortgage payments, whereas a credit score of 850 indicates that you are an excellent credit risk. A person with a credit score that high does not miss payments and has an excellent available credit to debt ratio. When applying for a home loan in Austin, you should be aware that your FICO score will be a large determining factor in your purchasing ability and in establishing your mortgage interest rate.
Improve FICO Score
There are several tips that you can follow to help raise your credit score before putting in for a home loan in Austin. Some of those tips include paying bills on time, eliminating as much debt as possible, increasing your debt to available credit ratio, and disputing inaccuracies on your credit report. There are different ways to attack credit card debt to increase your FICO score. You can begin with your higher credit card debts and reduce them down, or you can begin with your smaller debts and snowball payments from there.
Applying for a Home Loans in Austin
Once you’re ready to apply for a home loan in Austin, you should contact an Austin lending service. In many instances, it is best to determine what you are eligible to purchase before you go and pick out that dream home. When you know beforehand what you can purchase, it will help you target homes that are within your price range. Again, the higher your credit score, the better your home mortgage interest rate will be. However, if you do have lower FICO score, you can sometimes secure a home loan depending on your debt to income ratio and money available for a down payment.
Contact Signature Lending Services Now
In conclusion, your FICO score is important when applying for a home loan in Austin. If your credit score is low, you should focus on increasing your scores before applying for a home loan. On the other hand, if your FICO score is high, you will be eligible for a low-interest mortgage rate. If you want expert advice to guide you through the process of applying for a home loan in Austin, contact Signature Lending Services. We are an industry leader. To get started with a home loan, call (214)-681-3540.