"Mortgages can be fun!"
(said no one ever)
While some radio commercials lead borrowers to believe that “your job is your credit”, when it comes to a mortgage, the borrower’s credit score can be the make or break factor in qualifying for the loan. It can also dramatically affect the interest rate, as well as, the variety of mortgage programs that are available to a borrower. So it makes sense that this is a common topic where borrowers need info.
Here are some of the most frequently asked questions about credit scores that we’ve heard:
There are a lot of other factors that contribute to your credit score, but paying off loans should not materially lower your FICO score long term. However, there can be a temporary dip in your FICO score.
If you want to take your relative off of the mortgage, you would just need to refinance. Provided your credit and income qualifies, it should be a straightforward process for you to remain on.
PS Check out our simple eval process where you can choose whether you want to: get real rates specific for your scenario (beware of teaser rates!), see how much home you can afford, get pre-approved, or quickly submit your contact info so we can get back in touch.