Before purchasing your home, you may find yourself searching in the market for mortgage loans. Finding a good mortgage lender can help you solidify the funding needed to secure a home and can help to simplify some aspects of the homebuying journey.
How does a mortgage work?
So, what exactly is a mortgage? A mortgage is a loan with terms often ranging from 10 to 30 years in which a borrower is awarded financing to purchase a residential property. Monthly payments of a mortgage loan go towards the principal balance, mortgage insurance, property tax and interest rates.
Tell me the minimum credit score required for a home loan?
On average, many mortgage lenders offering conventional loans require a credit score of at least 620 to demonstrate good credit history. Loan types such as FHA loans do allow borrowers to qualify with lower credit scores; however, this often comes with higher interest rates and a larger down payment requirement.
If you’re in need of a larger mortgage, you may be considering applying for jumbo loans. Due to the higher amount of financing being borrowed, the average credit score needed to qualify for a jumbo loan is around 700.
Review methodology
As you compare and review different mortgage lenders and loan types, there are a few great factors to consider to narrow down your search:
- Do they offer lower interest rates?
- Do they have good costume reviews regarding communication and integrity?
- What fees do they charge in connection with taking out a loan?
- Do they have local servicing?
By reviewing your credit history and doing research on
About the Author
Eileen Cline
Hi, I'm Eileen Cline and I'd love to assist you. Whether you're in the research phase at the beginning of your real estate journey or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you.