Your Credit Score effects your Interest Rate.. News on Current Interest Rates
Posted by UtahCribs, Real Estate, Homes on February 17, 2010
When it comes to interest rates, one of the biggest questions I get from buyers (First Time Home Buyers), is what effects the interest rate a bank will give me? Great questions, banks look at several different factors when determining someone’s elegibility to receive a loan.
One of the biggest factors is your Credit Score.
If you have a credit score under 620, good luck getting a loan. And if you get a loan, your interest rate will be a lot higher than the average..Your DTI will be the next factor in getting a loan. DTI? Debt to Income Ratio. This means, how much debt do you have and are obligated to pay on in relation to how much money you make.
Another factor is job history, if you are someone who changes jobs often and has not been with one employer for a significant amount of time. Most banks will look at you as a risky buyer. There are many other factors effecting the loan approval process, if you would like more information please let me know..