You don't have to look much further than this chart, which shows what kind of interest rates you could get - based on your credit score. The data is pulled by myFICO, a division of the Fair Isaac Corporation, with interest rates as of November 13, 2012.
FICO Score APR
760-850 2.926 percent
700-759 3.148 percent
680-699 3.325 percent
660-679 3.539 percent
640-659 3.969 percent
620-639 4.515 percent
As you can see, a good credit score can definitely work in your favor. However, Long warns that boosting your score is a long term proposition, so it may take awhile before you can reap the benefits of an improved score. "It's not just going to go up overnight, so by the time you've raised your credit score, the low rate you want may no longer exist."
Long recommends checking with your lender to find out what kind of score is necessary to qualify for the loans and rates you want - then figure out if the effort will be worth it.
Joel Lobb (NMLS#57916)
Senior Loan Officer
Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
I frequently get calls from people trying to buy a home for someone else claiming it is for themselves. Donâ€™t do that if that is the plan. Follow the rules that are in place to protect you and it will work out the way it is supposed to. Have your Realtor in Kentucky introduce you to the loan officer they trust the most and tell the LO everything about your situation, good luck,
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
By the way, some of the other conditions the Michigan court demanded were house and school at least as good as the ones she was leaving, so we helped her submitted objective data on both those issues to the Michigan court.
Before you make any firm buying or moving decisions it is essential to become pre-qualified through a rock solid, reliable loan officer. If you need referral to one, please let me know. Loan conditions have tightened dramatically in the past few years - I just had a lady with a $160,000 salary and 710 credit score rejected by a few lenders (We`ll hear on Wednesday if we have secured a loan for her. There are a few small local credit unions and banks which lends their own money on non-conforming loans).