Impact on Credit Score

Applying for a mortgage results in a hard inquiry on your credit report, which might lower your credit score by a few points. However, this drop is often temporary and your score will usually recover within a few months if you continue to make timely payments.

Yes, making consistent, timely mortgage payments can actually improve your credit score over time. This is because payment history makes up 35% of FICO Score calculations and displaying responsible borrowing habits can positively influence this factor.

It depends on the lenders requirements. Some lenders may approve borrowers with lower scores but at higher interest rates or require larger down payments. Mortgage brokers are skilled at finding lenders who will work with various credit situations and can help find the best loan options based on your specific circumstances.