| My daughter followed in my footsteps and became a | | | | While there are many reasons a person may fall |
| realtor, however buying a home today (or obtaining a | | | | behind in their debts (some beyond our ability to |
| mortgage), has changed radically since my career | | | | avoid), if at all possible bring any of your outstanding |
| began. During the real estate boom obtaining a home | | | | bills up-to-date prior to making your loan application, |
| mortgage was something most upstanding young | | | | this will show the lender you're serious, even if you |
| couples could do, regardless of credit history. Today | | | | don't qualify today. |
| things have changed and to be considered for a | | | | For most young couples buying a home is probably |
| home loan, you must have minimum credit score or | | | | the most important and largest financial obligation of |
| most lenders won't consider your application. | | | | your life, based on that it's wise to plan out your |
| At least one factor for this change is based on the | | | | strategy ahead of time. Here are a few steps to help |
| economy and the over extension of credit given by | | | | in your journey to obtaining the minimum credit score |
| home mortgage lenders. When the housing market | | | | for required for home loans. |
| took a downturn and foreclosures became | | | | Check your credit score at least once a year for |
| commonplace, lenders began overcompensating | | | | accuracy |
| requiring higher credit scores difficult for many to | | | | Learn to live on a budget, and do so diligently. |
| meet, and 100% financing has nearly become a thing | | | | Do not let the beginnings of good credit, be an |
| of the past. | | | | excuse to splurge. |
| If your credit score is below 640 you'll find it difficult | | | | When you do apply for a home loan, make certain |
| to find a lender who will seriously consider your loan | | | | you research different lenders, realizing there are |
| application, since most are looking for those with high | | | | factors besides your credit score that may affect |
| credit score, verifiable "proof of income", as well as | | | | the loan. |
| adequate funds for a good down payment. | | | | Realize there is a difference between being |
| Most loan officers are good people confined by the | | | | pre-qualified and pre-approved. Pre-qualified simply |
| rules placed on them by their own financial | | | | means you are someone likely to be considered for a |
| institutions; however if you talk one-on-one explaining | | | | loan, being pre-approved means you are assured of |
| your situation, perhaps asking them for advice on | | | | your loan, and can house shop knowing the money is |
| improving your credit score, when you do this, you're | | | | available. |
| building a relationship with the lender for the future. | | | | Once you've reached your goal of obtaining the |
| While identity theft is not the subject of this article, it | | | | minimum credit score for home loans, pat yourself on |
| is certainly a wise to contact the three major credit | | | | the back, but don't stray from the path of sound |
| bureaus, (Experian, Equifax, and TransUnion) and | | | | judgment and living within your means. |
| obtain up-to-date credit reports, ensuring their | | | | By diligently applying the above steps, you will no |
| accuracy and knowing in advance what the lender will | | | | longer be concerned about the minimum credit score |
| being seeing when considering the minimum credit | | | | for home loans, since your score will be well above |
| score for home loans. | | | | the required 640. |