Chicago’s average credit score is 676, according to Experian – not bad, when the national average is 669.
Hello, and welcome to First Centennial Mortgage’s video blog. Today we’re looking at what a low credit score means for your mortgage application.
The good news is that a low credit score doesn’t always lead to a mortgage loan denial, although this is a possibility. More likely, a lower credit score for you will mean higher interest rates. Typically, scores in the high 700s and above will net you the best rates. Drop in the low 600s and below, and securing an affordable mortgage becomes more difficult.
Low credit scores can also result in a sub-prime mortgage, instead of a conventional one. These usually come with higher rates to offset the risk of a loan default.
Remember, though, your credit score isn’t the only part of a quality mortgage. Talk to the experts at First Centennial Mortgage today to learn your options.