I'm not trying to be argumentative here, rather just comply with Federal guidelines and provide the best information possible. It is a Federal crime for a lender to discourage a potential homebuyer from obtaining any type of credit for several reasons including credit. Of course that doesn't mean that everyone is approved, our job is to be consultants to an applicant on the status of their options and/or how to achieve their desired goals. We are not allowed to discourage someone from trying to obtain credit for any reason. Your previous post would violate this provision. I did not want Rico or any other potential homebuyer to read this blog and think they could not buy a home because they had less than a 680 score. In addition several programs are available for clients with credit scores below 680 that are as good or better than conventional programs available to those with excellent credit, USDA and VA are two that come immediately to mind.
NMLS # 75615/465546
If you take a few minutes to read my post again you will notice that I did not say you could not get approved with a score less than 680. I said that if you do not have scores greater than 680 you should work on improving your credit scores. Sure you can get approved but getting approved with the the best interest rate should be your ultimate goal. Loan officers are in the business of getting potential buyers approved not necessarily helping you to get the best rates. Take care.
Having your credit pulled is really not that big of an issue unless you are at or near a threshold for approval or rate adjustment, which you won't know till your credit is pulled. If you pull your own credit it doesn't count as an inquiry and doesn't effect your score, however the bureaus will charge you to get your numerical score. I do not need your score to advise whether or not you would be approved but to give you the best info as to program, down payment, and approval amount the score is very helpful. BTW regardless of what your score is now if you are looking to buy a home consulting with a mortgage professional now can put you where you need to be by your target date. The advice of 740 or 680 scores as a minimum requirement is not accurate, if it was I'd be out of work :)!
NMLS # 75615/465546
If you begin now, you should have time to clear up any credit problems and get proof of pay off of any old credit.
I do FHA, VA, Conventional loans. We have more than one type of down payment assistance program for those meeting the income and credit requirements.
Fidelity Bank Mortgage also offers many renovation programs, if the home you chose needs renovation as many do in our market now.
Good luck to you and if I can be of assistance, you can reach me at 404 644 7696.
â€¢ November 29th - Closing Date
â€¢ October 1, 2013 - Your offer is accepted by the seller and you are under contract
â€¢ 08/01 - 09/30 - You're touring homes and presenting offers
â€¢ July 31, 2013 - You're fully approved for a mortgage
â€¢ July 15, 2013 - You're working with the lender to get fully approved / interviewing agents
â€¢ Immediately - You're reviewing both your credit reports and credit scores for accuracy
â€¢ Immediately - You're registering to attend one of the local HUD-certified home buying classes
â€¢ Immediately - You're saving / arranging for the down payment of at least 3.5% down and closing costs
Here's a graphic illustration of the local home buying process
Of course, the timeline will vary based upon your desired location, type of property, budget and more. But this should provide some answers to your question.
Incidentally, lenders can approve you for an FHA mortgage with scores as low as 600, but you'd get the greatest level of benefits (down payment assistance, more competitive interest rates, etc.) with at least a 640 credit score.
Hope that helps.
Georgia Real Estate Brokers Associate, REALTORÂ®, Georgia-certified Affordable Housing Counselor, CDPE
Keller Williams Realty Atlanta Partners
"If you help enough people get what they want you will get all of what you want"....Zig Zigler
You don't need a 740 score. Can you imagine that being the cut off? We'd all be broke...lol..
Start in September. Close by Dec 15th or find yourself closing the following month.
You may have wonderful credit. You will typically need a credit score of 740 or greater. However, it is important to know if there are any issues with your credit that can be repaired prior to making an application. The lender that you are most comfortable with will need to pull your credit report. They will need to pull it again when you actually make application.
The bottom line is that it is valuable to know where you stand now. I talk with many potential home buyers who want to purchase now but do not yet qualify for the amount of the loan they think they need. because of credit flaws. As a result we agree to wait while they pay off CC debt and any collections no matter how small.
Also, I advise you to find a lender who is responsive to you. Not all work at the same level of service.
You might also want to go to a Keller Williams site and search for help for first time home buyers. This provides a beautiful guide to the entire home buying process.
I wish you success.
I would submit my documents for a full pre-approval around April or May if it's a shor sale that hasn't been "approved" by the listing bank. if you're looking for regular properties owned by the owners, then you could put everything together in mid September - October.
Fha is a more forgiving program for lower credit scores and less down payment (3.5%) out of pocket. You might want to call and get some answers on the different programs as wellas get yourself pre-qualified.
Advance preperation always make for easier and faster closings.
Steven C. Smith
Green Tree mtg
We finance FHA loans with only 3.5% down and FICO scores as low as 580.
You may apply online at http://www.rhlapps.com/kjones or give me a call.