Your credit score has a direct impact on your interest rate. When applying for a home loan at Lake of the Ozarks, it's important to have all of the information upfront and that's why our Osage Beach, MO mortgage lender is here to offer some advice. The better your credit score, the lower your interest rate will be.
Lenders evaluate your credit history to gauge whether you are a high or low risk borrower. If your credit score is low, you appear to be a more risky borrower, therefore lenders counteract that risk by charging a higher interest rate on the money you borrow to purchase your home.
Your credit score is a big factor in determining your interest rate. Your past credit usage showcases how responsible you are with credit. If you make timely payments and keep your debt to income ratio in balance, you are more likely to have a higher credit score. This is good news when it comes to borrowing money for a home purchase. The better the interest rate you receive, the less money overall you spend over time when paying for your home. Getting a lower rate means your monthly mortgage payment will be less. This gives you more flexibility with your home buying budget.
No matter what your credit history looks like, there are options available for buying a home. Our mortgage lender at Lake of the Ozarks is here to help you work through the mortgage application process. We can also advise you on the best steps for improving your credit if it is not where you want it to be before making a large purchase.
Buying a home is a major financial step. It's important to know all of your home buying options as you prepare for your big purchase. Team Lasson is here to help educate our clients to get them set up for the best home buying experience possible. If you're curious as to how much of a home you can get approved for, give us a call at (573) 746-7211 or visit our website at www.yourlakeloan.com. We look forward to speaking with you about your home loan needs!
Stay tuned for next week's blog in which we will cover ways to improve your credit score before you apply for a home loan at Lake of the Ozarks!
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