How Much of a Home Loan Can I Get with a 720 Credit Score?

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    KikoffKikoff
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    KikoffKikoff
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    The higher your credit score, the better the chances you’ll qualify for a loan with good interest rates. 720 is a solid credit score, but you still have plenty of room to grow. So if you know you will be looking for a home loan soon, start building your credit as soon as possible. There’s no simple plug-and-play formula for credit scores, interest rates, and what you’ll get from a lender. The best option is to shop around and pick the best rate available.

    Lenders look at a lot of factors when you apply for a loan, these are 3 important ones:

    • Income: A higher income and a steady paycheck can help you secure a better loan. Having money coming in consistently shows you can pay back debts.
    • Debt-To-Income Ratio: The money you bring in compared to how much you owe. The lower your debt, the better. This includes debts like loans and credit cards.
    • Down Payment: A larger down payment, like 25% makes you more attractive to lenders. But it also means you’ll need more of the money upfront.

    Different kinds of loans come with different pros and cons:

    • Federal Housing Administration (FHA) Loans: These loans are typically more accessible, but come with mortgage insurance, which can add to the total cost.
    • Conventional Loans: The typical loan. You can make yourself more attractive to lenders by committing to a large downpayment (like 25%), but you’ll have to have more money in your pocket initially.
    • VA Loans: Loans for veterans and active service members. These have no official minimum required score to qualify, but as usual, the higher your score, the better. 

    Not at 720, or want to get an even higher score?

    Kikoff is a credit-building app that can help you establish a positive payment history through their Credit Builder account. Plans start at $5 a month, and even have an Autopay feature, so you can build credit in the background. Kikoff has no credit check, hidden fees, or interest. Sign up in minutes and start building credit faster.

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The information provided in this blog post is meant for informational purposes only and does not constitute financial advice. Kikoff Inc. is a financial technology company and not a bank. The Kikoff Secured Credit Card is issued by Coastal Community Bank, Member FDIC. Terms and conditions apply & individual results may vary. Make consistent on-time payments to maximize credit building potential.  Credit factors outside Kikoff, like other account balances or delinquencies, can have an impact on credit building progress.  Subject to approval via identity verifications and subject to terms and conditions. Kikoff Credit Account reported line of credit intended exclusively for credit building purposes & can be used to finance the purchase of monthly Credit Service plans and/or digital educational material via the Kikoff Store. For more information, visit our Terms and Conditions and Privacy Policy. We report to the major credit bureaus: Equifax, Experian, and TransUnion. Features, tradelines, bureau reporting, & pricing may vary depending on plan purchased. This post may contain marketing messages and advertisements in compliance with the CAN-SPAM Act. Please refer to our Secured Card and Credit Account Terms for detailed product disclaimers.

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