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CREDIT SCORES
What is a credit score?– It is a score referred to as a “FICO” score. These scores are calculations based upon your habit of paying your debts and how credit is paid on time and the number of lines of credit you pay on time. Do you ever pay debts 30, 60, 90 days late and are there unpaid debts that are charged off or turned for collection? Have you filed bankruptcy? And there are many other issues - no one knows exactly how these credit scores are figured but we know certain actions will raise a score and certain actions will lower a score. The FICO scores are time sensitive, meaning the more current the good debt or bad debt is, the more it increases or lowers your scores.
What are your credit scores? There are three credit bureaus and when applying for a mortgage loan or bad credit home loans your credit that has been reported to all three bureaus will be obtained and reviewed and each of the three of these credit scores are considered by the lenders in determining if they will loan you money to purchase a home. Each lender has different guidelines as to the credit scores and what they consider as a line of credit. Each time your credit report is pulled (inquiry) it can lower your credit score – so be very careful and do not let just anyone pull your credit. Let us get started by pulling just one credit bureau’s score so we can determine if we need to start work on your credit or if you can be financed now with any one of the 70-plus lenders that we have chosen as the very best. Are you ready to start looking for your house – today?
Why do my credit scores matter? Are your scores 850 (best) or 350 (worst)? It still doesn’t matter because regardless of your credit scores, you still want to buy your own house and get the best loan or rural mortgage possible. That’s why - with all types of the best lenders - Mortgage Makers Lending can assure you that you can get a loan to purchase a home. Your credit scores are the starting point to determine which lenders we contact in effort to get you financing. If you need 100% financing, we may, or may not, need to work with you to increase your scores. Do we use both spouses’ credit scores or do we use just the scores of the spouse that has the highest scores? If your scores are not high enough for 100% financing we might use a lender that will allow a family member or a friend to give you a gift, or we might use a lender that will allow the seller to carry your down payment as a second mortgage or after bankruptcy mortgage. There are numerous methods of using your credit scores to determine which lenders we can use to get your home financing approved. Mortgage Makers Lending specializes in finding the right lenders that have the right financing program to help all home buyers who have specific problems such as low credit scores; high credit scores but need 100% financing; the amount of income or proving income; debt ratios; little or no open credit; rural property; or, whatever reason one might have for not getting approved for a loan.
Your credit score is the main factor in a lender’s decision to loan you money. Minimum credit score for conforming loans is 620 where non-conforming and sub-prime loans minimum credit score is 500. Your credit score can be increased or lowered based upon the methods in which you pay creditors or even if you have little or no current credit. Mortgage Makers helps all home buyers who want to be home owners and need their credit scores increased.
We need to review your credit to see what your scores are and determine what type loan we can do now, or if necessary, see what we can do to increase your scores. You need to have us research all your options and the best method of financing based upon your circumstances.
If your score is in the 700’s and you have 10% to 20% down, almost any lender will loan you the money to buy a home. That is, if you can prove your income and your debt ratio is not too high, no late payments, and no bankruptcy and if you meet all other conforming guidelines. But what if your score is below 620 even as low as 500, or if you have no idea what your credit score is (those Internet "free" credit reports do not reveal the real information or your true credit scores!), and whether or not you have unpaid debts on your credit report – who will finance your home purchase?
Regardless if you have a high score or a low score, do you want to know what is the best loan you can get? Mortgage Makers knows we can get the best loan for you based upon your circumstances – why? Because of our 70 plus non-conforming/sub-prime lenders and our very best conforming lenders. Our Motto is, “Home Loans For Everyone.” There are so many things to know about a credit score – you really need someone that has worked with credit scores for a long time and knows the proper steps to help increase your scores and makes sure the proper steps are taken so you don’t further lower your score.
Sometimes the combination of your credit score and the condition of the house you want to buy is the real problem. Many times we find a lender that will loan you what money you need but does not like the house and will not loan on that house. Then what do we do? We find out what the real problem is with the lender or the property and try to solve the problem with them and if they still will not loan on the property we try some different lenders to see if they will loan to you on the house. Of course, if this still doesn’t work you have no choice but to find a house that lenders will loan on. If you are now ready to own your own home – Let’s Get Started.
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