Qualifying for a loan in Northwest Arkansas can be tough, as many different factors go into getting a home loan. Your credit score is just one factor in this equation in qualifying for a loan. Each lender uses different methods to determine your credit worthiness. In some cases, a minimum credit score is hard to determine for conventional loans. If your loan is being underwritten or insured by a government organization, there is a minimum score, usually around 620 being the low end. For conventional loans many factors come into play including payment history, salary history, current wage, current credit, what other lenders in the area are doing plus the state of your local economy. The banks are in it to make money, believe it or not, so the local economy being strong can usually help out the home buyer.

There are two different governmental organizations that lend–FannieMae and FreddieMac. Independent mortgage companies take a lot of cues from these two government institutions.

What can my credit score get me? The better your credit score, the more likely you are to get a lower interest rate. According to the Fair Issac Corporation, a.k.a as FICO, the different rates you are offered is based on your credit score. A score of 620-639, considered to be a risky lend by most, can bring around 5.718% on a $300,000, 30-year conventional loan. If your score is on the high end, say 760-850, you can expect around a 4.129% interest on the same loan.