Purchasing a home is a significant financial milestone, and for most people, it requires securing a mortgage. Whether you’re looking to settle down or to create a rental opportunity, mortgages can provide financial flexibility. They allow homeowners to allocate their capital to other investments or expenses rather than tying up all their funds in a property. In order to qualify for a mortgage you need to know your credit score
How Are Credit Scores Determined?
Your credit score is a three-digit number that reflects your creditworthiness. Lenders use this score to assess the risk of lending to you. The factors that influence your credit score include your payment history, length of history, and credit inquiries.
Understanding Your Score
If you know your credit score you may or may not know what it means. The higher your score, the more likely you are to get approved for loans because lenders can evaluate your trustworthiness based on your credit history.
- Excellent: 750-850
- Good: 700-749
- Fair: 650-699
- Poor: 600-649
- Bad: Below 600
Any score below 600 will have a negative impact on your credibility with lenders and can damage your financial reputation.
What You Need To Do To Get Approved
To secure a mortgage, it’s generally recommended to have a credit score of at least 620. However, the higher your score, the better the terms you’re likely to secure. To improve your credit score and increase your chances of mortgage approval make sure you pay your bills on time and avoid opening any new lines of credit.
Start Investing Today
Real estate offers a unique opportunity for investment and financial growth. Whether you’re looking to buy a property to rent or to call home, it’s a significant step towards building your financial portfolio. By understanding your credit and improving your financial health, you’re well on your way to seizing the advantages of real estate investment.
Talk With Oak City Properties
At Oak City Properties, we provide custom solutions and competitive quotes that tailor our services to what you really need. Our full property management service will work with you each step of the way when renting and maintaining your property. We believe hiring a property management company should be a transparent process built on trust and doing our absolute best to take care of your investment.