Before purchasing your home, you may find yourself searching in the market for mortgage loans. Finding a good mortgage lender can help you solidify the funding needed to secure a home and can help to simplify some aspects of the homebuying journey.
So, what exactly is a mortgage? A mortgage is a loan with terms often ranging from 10 to 30 years in which a borrower is awarded financing to purchase a residential property. Monthly payments of a mortgage loan go towards the principal balance, mortgage insurance, property tax and interest rates.
On average, many mortgage lenders offering conventional loans require a credit score of at least 620 to demonstrate good credit history. Loan types such as FHA loans do allow borrowers to qualify with lower credit scores; however, this often comes with higher interest rates and a larger down payment requirement.
If you’re in need of a larger mortgage, you may be considering applying for jumbo loans. Due to the higher amount of financing being borrowed, the average credit score needed to qualify for a jumbo loan is around 700.
As you compare and review different mortgage lenders and loan types, there are a few great factors to consider to narrow down your search:
By reviewing your credit history and doing research on
Beth is a Michigan native, who was born and raised in the Kalamazoo area and had former residences in Vicksburg, Dearborn Heights, Grosse Pointe, and Portage. Additionally, she has lived in Illinois, the Philippines, California, and Colorado. As a resident of Clarkston for over 15 years, Beth really knows the local area and is very knowledgeable of Metropolitan Detroit market. With a second home in Harbor Springs, she is familiar with the Little Traverse Bay real estate market as well.
