Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:
1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, itâ€™s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, itâ€™s desirable to have more than one type of credit â€” installment loans, credit cards, and a mortgage, for example.
For more on evaluating and understanding your credit score, visit http://www.myfico.com.
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Make sure to interview several lenders not only about FHA but other first time home buyer programs like Smart Start and Live Where You Work. You can also ask them about the Mortgage Readiness Initiative which is an income eligible program where you can get up to $10k for the purchase of your home. There is also a program called USDA which can give you 100% financing in places like Williamstown, Winslow, and Mt. Laurel.
Let me know if you have any questions and good luck.
Got your email.
I understand you would like to buy a home. First step get pre-approved. You can pick your own loan officer or use one of the listed below.
Try William De La Torre at Wells Fargo Home Mortgage 856-562-2286.
or Joe McCrea at Bank of America at 856-371-2708
or Robert Kelley at Evesham Mortgage at 856-985-9944
They can help you get a mortgage so you can buy a home. Some can give you a mortgage even if your credit scores are as low as 500 if you qualify.
Ines De La Cruz
Are you looking for mortgage assistance? Send me an email I can connect you to some great mortgage consultants.
Gina Fagnani/Realtor Associate