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How much Credit Score is required to Buy a House and what are Loan options for Credit Score?

Good credit score is required to determine your repaying capacity of the loan. You need to have good credit to buy a home of your dreams. This helps the lenders rewards the maximum credit scorer with lots of choices and minimum interest rates.

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How much Credit Score is required to Buy a House and what are Loan options for Credit Score?

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  1. How much Credit Score is required to buy a House and what are Loan options for Credit Score? You need to have good credit to buy a home of your dreams. Fair Isaac Corporation score not only decides whether you are qualified for loan or not but it also decides the effect caused on mortgage terms. How much Credit Score is required to purchase a House? Mortgage is quite liable on credits. If you have 500 scores to grant a mortgage. But a good credit score is required to determine your repaying capacity of the loan. This helps the lenders rewards the maximum credit scorer with lots of choices and minimum interest rates. Options for the Loan according to the Credit score 1.If you have a score between 300 – 499 you will get few mortgage options. In this case, there are chances of getting a mortgage only if someone comes to help you out. For instance, any family member or friends. 2. If you have a credit score between 500 – 579 you will be rewarded with poor credit score mortgage schemes. You will either be advised to boost the credit score or prepared to put ten per cent down.

  2. 3.If the credit score lies between 580 – 619, you will get low down payment schemes. You will get FHA loans with a down payment of 3.5% but you must have 580 or more than 580 FICO score. 4.When the credit score lies between 620 – 699, government provide various loans and you will also be eligible for conventional loans which are not provided by the government. 5.When the score lies between 700 – 739, you will get various good credit score mortgage schemes. You can apply for high- value homes because you are already getting better and lower interest rates. 6.If you have 740 or above 740, here you will be rewarded with the best interest rates and eligible for best conventional loans. You can buy an expensive one with this credit score. Tips to Strengthen the Credit Score to Buy a House: The best solution is to keep the place on rent unless you get the best deals on mortgage. You can utilise this time to enhance the credit report. Here are the tips: A.Make sure your bills paid on time so that you don’t have delayed payment history which can seriously reduce your credit score.

  3. B.Another tip is to limit the use of credit card. Keeping its balance low helps to boost the credit score. Most of the expert suggests to use 30% of the credit limit or even lower than that. C. Check the credit report thoroughly. Look for the inaccuracies or errors in the report which contributes to the lowering of credit score. Correct them to boost the score. D.Make sure your credit cards are not closed. It can minimise the available credits in your kitty. It can lower the credit score. Tips to monitor the Credits and Progress If your credit score is not good, you can try to build it. You can monitor your progress through credit cards, personal finance websites etc. Below are some tips to monitor the credits and progress. Have a look! A.A free credit score is considered as a vantage score. It acts as a competitor to Fair Isaac Corporation (FICO). Both of them are used to track and monitor the progress report. They have the same features but slightly different in weight. B.Your older version of Fair Isaac Corporation score namely FICO 2, 4 & 5 (FICO score) is checked and verified by mortgage lenders. If you want to see your position so that you become aware of what lenders will perceive from those reports, you have to buy a comprehensive Fair Isaac corporation report. It is available on myFICO.com. You don’t have to pay monthly.

  4. You can cancel the monthly subscription after the work gets done. Make sure you cancel the subscription timely. C. If you are about to reach a good credit score, there is no need to check your Fair Isaac corporation score. That means you do not have to spend extra money. Because you already have required credits to get the best rates. Reference:https://medium.com/@cashbayworkingcapital/how- much-credit-score-is-required-to-buy-a-house-and-what-are- loan-options-for-credit-score-972e09bfa15c

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