When you have a credit score ranging from 720-750 chances are you will get a nice interest rate an affordable loan overall. If you have a down payment and a nice credit history, then you will definitely get the best loan possible!

For the rest of us, we will have to spend a little time working on our credit. These days a lender has to do a lot of investigating to see if you are a credible applicant to give a loan to. Lenders will probe your credit report for late payments, missed payments and judge you based on your debt to income ratio.

You could be approved for a loan with scores ranging from 620-650 but it will not look nice on paper. You will be at the banks mercy to pay large amounts in closing costs, extremely high interest rates and usually other fees as well.

Do not worry; there are easy things you can do to quickly put you in a better loan obtaining position. First you need to get a copy of your credit report. Check for any mistakes or old information to be deleted.

Then you need to know your debt to income ration since this is vital information lenders look at. To make it better, start paying off balances or earn more income. If you can increase your pay and post it towards your balances you will be in the perfect position even quicker.

Why is there such a dramatic change with in the last few years in the housing industry you ask? It is simple to understand what went wrong and who is truly at fault for such a struggling economy.

The government gave too much control and confidence to the banks for their lending objectives. Bankers were so greedy to make money that they gave huge loans to irresponsible and unqualified applicants.

It was simply way too easy to get quickly approved for a home loan back then. As long as you could provide a viable credit score lenders would make you an offer. All you had to do after that was decide how to decorate.

Today a lot of those people are struggling to repay their home loans. This in turn has created a huge fall in our economy. People are skipping payments and are finding themselves in a foreclosure situation.

It crucial to be aware of your credit situation before you apply for a home loan, especially in today's economic crisis. Do not settle for any a loan approval.

Take the time to boost your credit score so you qualify for the best loan possible! Do your homework and you will be excited with the money you will save.