Credit Scores for mixed use loan

Credit Scores for Mixed Use Mortgage: What Does the Lender Expect from You?

So far, you know the positive side of a high credit score when applying for a mixed use loan. Well, the time is right for to understand the negative side as well. If your credit score is plummeting, expect a difficult loan application process.

High Interest Rates

If you have low credit scores, you will pay a higher interest rate on your mortgage. This is because the lender regards you as a high-risk case. Therefore, the lender makes you pay for this high risk by giving you a higher interest rate.

High Rejection Rates

With perfect credit scores, the lender approves your loan application quickly. However, a low credit score attracts rejection only. Every lender will give you feedback with the title “Loan Rejected”.

Predatory Lending

The lender might give you the loan, but charge you more. You find that you pay high mortgage insurance, hidden fees or even have your loan extended. This makes the loan expensive for you.

What is the Ideal Credit Score?

Lenders use your credit score to determine your ability to make consistent repayments. The ideal credit score for a mixed use mortgage is 650 FICO. FICO stands for Fair Isaac Company, which is one of the many ways a lender can determine your credit score. A credit score of 650 or higher enables you to pay low interest, which lowers your monthly payments. This leads to significant savings for you.

Why Work with Us?

At Mixed Use Mortgage, we understand what every lender is looking for. We know the importance of a high credit score when it comes to mixed use mortgages. We also know how to improve your credit score legally. So, allow us to make your loan application desirable to a wide number of lenders by calling us today.

Don’t hesitate to give us a call and discuss your options, consultation is free and never a fee.

To contact us by phone call (800) 535-0270 or email us by clicking here.