Mortgage Credit Preparation
Complete guide to preparing your credit for the best mortgage rates and terms
Overview
Preparation
Requirements
Timeline
Credit Score Impact on Mortgage Rates
See how your credit score affects your mortgage rate and monthly payment
Your Credit Score
Loan Amount
Down Payment
8%
Estimated Interest Rate
$1,761
Monthly Payment (P&I)
$393,973
Total Interest Over 30 Years
Credit Score Ranges & Mortgage Rates
Current estimated rates by credit score range
760+
Excellent - Best rates available
6.50%
740-759
Very Good - Great rates
6.75%
720-739
Good - Competitive rates
7.00%
700-719
Good - Above average rates
7.25%
680-699
Fair - Higher rates
7.50%
660-679
Fair - Significantly higher rates
7.75%
640-659
Poor - High rates
8.00%
620-639
Poor - Very high rates
8.50%
Below 620
Very Poor - Highest rates
9.00%+
Key Factors Lenders Consider
Positive Factors
Credit score 740+
2+ years stable employment
Low debt-to-income ratio (<36%)
Large down payment (20%+)
Strong payment history
Red Flags
Recent late payments
High credit utilization
Recent job changes
New credit accounts
Bankruptcy or foreclosure