Credit Score Affecting Home Purchases

Credit Scores in today's home buying market is so important. Basically anything you buy relies heavy on your credit score.

Credit Scoring is done by three agencies called Transunion, Experian and Equifax. The creditor assess you ability to pay by your credit report. There could even be a difference of 100 points between each agency. Many lenders use the middle score to decide if you will get the loan.

In the past you could obtain a loan with a 620 which was acceptable for a Fannie Mae and Fannie Mac investors. However thinfgs have changed .Youneed a 720 or better to get the best possible interest rate on you loan. Lower scores can definitely affect your interest rates, loan to ratio or loan fees. Sometimes even a larger down payment is required. In these times that maybe almost impossible.

There still are loans from FHA investors accepting as low as 600. Don't forget VA loans.

To tell you the truth if you are thinking of investing in a house obtain you credit report with scores from each of the agencies and see where you stand.Planning a budget now will definitely help.