How does my credit score affect the mortgage interest rate I qualify for?

Your credit score is one of the most important factors in determining the interest rate you qualify for when applying for a mortgage in Washington. Credit scores are a numerical representation of an individual’s creditworthiness and ability to repay debt. Lenders use credit scores to assess an individual’s risk of not being able to pay back the loan. If you have a higher credit score, you are more likely to be seen as a less risky borrower, and therefore qualify for a lower interest rate. The minimum credit score for a mortgage in Washington is 620, but the rate you qualify for will depend on how far above that you are. If your credit score is above 760, you will receive the best interest rate. If your score is in the 620-699 range, you will get a higher interest rate than someone with a 760+ credit score. Additionally, the type of loan you might qualify for can vary depending on your credit score. For example, you might not be able to qualify for an FHA loan if your credit score is below 500. It is important to keep in mind that having a higher credit score is not the only factor in determining your mortgage interest rate. Other factors such as income, employment history, and debt-to-income ratio can also affect the interest rate you qualify for. If you need help understanding which factors have the biggest impact on the rate you can get, talking to a mortgage lender can help.

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How does my credit score affect the mortgage interest rate I qualify for?

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