Home Buying in Frederick>Question Details

Adrian Ordon…, Home Buyer in Longmont, CO

how much credit should you have so you can buy a house?

Asked by Adrian Ordonez, Longmont, CO Wed Jan 11, 2012

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Answers

9
how much credit you need to buy a home for 80.000
0 votes Thank Flag Link Thu Jul 5, 2012
Good job, Adrian! Credit is the first thing you should address.

If you go the FHA route, then indeed you're going to need a higher score. A score of 620 or better is what you can expect to show.

Homepath offers attractive terms. The score requirement also is 620.
http://portal.hud.gov/hudportal/HUD?src=/program_offices/hou…
http://www.trulia.com/blog/jeffhutchison/2009/09/fannie_mae_…

Other helpful information:
http://credit.about.com/od/creditrepair/tp/improvecredit.htm
http://www.homepath.com/financing/index.html
http://www.gomortgagerates.com/down-payment.html

But what if you're looking ahead to better times? For instance, you got a better paying job recently and that is helping you get your credit in better shape.
In the current market, sellers sometimes can be found who are motivated to sell.

http://www.usatoday.com/money/smallbusiness/columnist/straus…

Best,
SuZ
PML of Longmont
720 810 0683
bouldersuz@gmail.com
0 votes Thank Flag Link Tue Jan 17, 2012
As everyone has stated there are many factors involved. If your credit score is lower your interest rate may be higher, but you can still purchase a home. A good lender will sit and explain in detail how this works and what program would best fit your needs to purchase. If you are in need of a good lender I will be glad to put you in touch with one to help you get the process started. This is a great time for you to purchase as I am sure you know from all the news. Once you have the information you need I will be glad to help you in a search for a home.
0 votes Thank Flag Link Thu Jan 12, 2012
Hi Adrian:

The answer to this question is not simple. A lot depends on the home you will buy (how expensive) the monthly payments you feel you can make (interest rates vary depending on your credit score) how much you can put down on the home (lenders are more comfortable with larger down payments) your ability to pay (your income and expenses) and, of course, your credit score itself.

I would suggest you talk to more than one lender to get an idea about what is available to you in particular. Most real estate agents have a list of lenders they like to work with, so you can get referrals from agents without having to commit to anything. I would note that lenders, like real estate agents, have different approaches. Do not assume that being turned down by one lender/broker means you will be turned down by another. Also do not assume that all lenders will treat you the same way. Some will give you a quick thumbs-up/thumbs-down answer and nothing more. Others, especially some brokers, will work with you to find the right loan for you and help you make simple changes to improve your credit scores so you can get a the lowest possible interest rate.

Kind regards,
Ron Rovtar
Prudential Real Estate of the Rockies
Days: 303.981.1617
Evenings: 303.473.1926
ron@rovtar.com
http://www.rovtar.com
0 votes Thank Flag Link Thu Jan 12, 2012
Hi Adrian,

As other agents have said, there are other factors involved than just how much credit you have. I have a great lender who could review your info and get you an answer very quickly. Please contact me directly for her contact info.

P.S I'm based out of Longmont, and do a lot of business in the Frederick/Firestone area. Let me know if you need a good Realtor! Thanks!

Sally

sallygrenier@msn.com
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Thu Jan 12, 2012
Hi Adrian,

The score, down payment, and loan amount are all factors which will affect your ability to get a loan. Specifically, the higher the rate and down payment, the lower your interest rate will be.

My understanding is a 720 credit score with 20% down will net you the lowest rate. 680 is also a good number to shoot for...
0 votes Thank Flag Link Wed Jan 11, 2012
Adrian,

Your credit scores should preferably be above 640. Some lenders will still offer approvals below that number, but the selection will be greatly limited.

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Wed Jan 11, 2012
Look to have your credit scores at about a 620-640. In Frederick, you can get a home using the USDA Rural Development mortgage which is a 100% $0 down loan. However, CHFA (Colorado Housing and Finance Authority) offers a $1000 down mortgage that works if you dont have a lot to put down, and are looking in a place where the USDA loan isn't available. From there, you have an FHA loan which requres 3.5% down, and then conventional loans which usually require you to have a least 10%-20% down. Hope this helps.
0 votes Thank Flag Link Wed Jan 11, 2012
Most lenders require somewhere around a 600 credit score (your mid score from the three credit bureaus). What you will need to qualify for a loan varies from lender to lender but in general they are looking to see that you are financially responsible. On time payments to all of your credit obligations is most important. Having a good work history and showing that you save money (and don't bounce your accounts) are also things that lenders look for. Think of it from the bank's perspective and use common sense....The bank is in the business of making money, which they get from the interest you pay on your loan. If you do not pay your loan they stand the chance of loosing money. Therefore the bank lends to borrowers who show that they are responsible and pay their debts on time and in full.
0 votes Thank Flag Link Wed Jan 11, 2012
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