Get a Mortgage: Advantages of Good Credit

When you plan to take out a mortgage loan, the status of your credit history is extremely important. If you have good credit, you will enjoy some advantages over those borrowers who do not have a strong credit history, including lower interest rates and more flexible options in choosing among mortgage lenders.

Lower Interest Rates

Mortgage lenders set interest rates on mortgage loans based in large part on a borrower's credit history. A lower interest rate translates to an often substantially lower monthly mortgage payment for the borrower, as well as a decreased total amount of money that will be paid over the terms of the mortgage loan. A mortgage lender will be far more willing to extend a mortgage loan with a lower interest rate to a borrower with a good credit history, because the risk of the borrower defaulting on the mortgage loan is much lower. Therefore, one of the advantages of having good credit is the ability of a borrower to pay often thousands of dollars less than a borrower with bad credit.

Mortgage Loan Options

While a borrower with a poor credit history is likely to be limited in mortgage loan choices¸ a borrower with a good credit history will have much more access to a variety of mortgage loans offered by various mortgage lenders. Therefore, a borrower with a good credit history will have his or her pick of available mortgage loans and lenders, and can perhaps obtain lower interest rates and more favorable loan terms.

Consulting an Attorney for Advice

If you need additional information and/or advice about the advantages of a good credit history in terms of obtaining a mortgage loan, you should contact an experienced real estate attorney for advice. An attorney can assist you in determining what mortgage loan is right for you, and what advantages you might enjoy as a result of your good credit history.