If you are thinking about buying a home in Orlando one of the first steps you need to take is getting preapproved for a mortgage. One of the main factors of a mortgage is the interest rates, so why does 1 person get a better interest rate then another? Here is some reasons that can help you. Keep in mind with the past two years many lenders have burned so they have tightened most of their lending rules.
To Qualify for any loan you must prove that you are a low risk to get the best terms. Part of that proof is your fico score. The lowest rates go to those with scores of at least 760 out of a possible 850. Boost your score by paying bills on time, reducing credit card balances to less then 20% of your limits and correcting any credit report errors. And you must show you have steady income.
So here is the difference of how credit score effects your apr which in turn your monthly payment.
A credit score of 760 gets and apr of 5.05%, but a credit score of 670 would qualify for an apr of 5.67% which on a $200,000 loan you will pay an additional $26,000.
Heather Joubran, GRI, NRBA, CLHMS, CDPE
RE/MAX Central Realty
www.HeatherTheRealtor.com (407) 810-6304
Specializing in First Time Home Buyers, Short Sales, Bank Owned Real Estate, REO & Foreclosure Properties
Servicing Real Estate Needs in: Lake Mary, Longwood, Winter Springs, Sanford, Altamonte Springs, Oviedo, Orlando, Downtown Orlando, Thornton Park, College Park, Winter Park, Maitland, Windermere, UCF, Lake Nona, Baldwin Park, Apopka, Ocoee & Winter Garden
Thanks for the post.
Hey..MS AR..#1 in your area...I appreciated your hoonesty on the AR points..I must admit..I do the same to keep the #1 spot...
Pre-approval is a mandate...Just hope with the number of foreclosures nationally that good credit scores can still preoccupy the buyers market...Thanks for your post.