A lender explains how your credit score affects your mortgage rate and whether you should wait to improve it before buying. The trade-off: a better score saves money on interest, but waiting means dealing with today's market instead.
It's a great idea to work on boosting your credit score to get a home loan. However, I see some people that want to wait maybe six to 12 months before getting a house because they want to work on their credit. Well, little do most people know the difference between maybe a 580 credit score and a 700 credit score is usually maybe a quarter, three, eight or so on the interest rate, which is something. But we break it down on a monthly payment, usually 50 to $75 a month. Might not be worth waiting up to a year. If house prices are going to continue increasing, interest rates in general are going to continue increasing. It very well could be something to consider to get the house now with the current credit score. Maybe refina on the road.
