You will find the smartest most effective method of determining credit requirements for a home loan is consulting a seasoned experience loan officer. They work with credit every day. They know exactly what is required and in most cases exactly what will be necessary to accomplish the required credit rating.
An experienced loan officer can also explain the most effective and fastest methods to build new credit.
The loan officers have a very strong incentive to make your loan happen as soon as possible and the experienced loan officers know which credit repair people are effective.
Gather more information than move forward on your credit. There are nine articles for you to read before you select and interview a loan officer including; Your Key People and Consultation Interviewing Loan officers, at Your Road Home.com.
They will not claim to be credit experts but the experienced loan officers are continually working with their clients to accomplish the required ratings. The incentive for the loan officer is the loan. They are commission paid.
But, the loan officer must be experienced. At least five years. And work with all of the loan types.
Meeting with a loan officer does not mean you are committed to that loan officer.
And you might save some money.
Also the articles Realistic Perspective and First Read will serve you.
So bottom line is gather your credit information from a person who works with home loans so is knowledgeable of the credit requirements and has an incentive to help you, if necessary, to bring your credit to the required rating.
Credit repair agencies charge by the month to repair and monitor your credit so clarify with the loan officer exactly what is required, if anything.
And a word of caution. Hold off on doing anything that will effect your credit until you consult a loan officer. Closing a credit card account or paying off an old past due bill can sometimes cause more harm than good.
First objective; Gather all the useful objective information you can find. Than interview loan officers. The choice you make is one of the most critical in the home buying process.
Trulia is also a good source of information and when you are ready to interview loan officers you will find them from your area on Trulia offering there services.
Most important, donâ€™t let anything or anyone deter you from your goal of owning your own home.
Best of Luck, Stephen Webber Retired After 34 Years of Real Estate For First Time Home Buyers
640 and above gets you the best rate for FHA and 740 and higher gets you the best rate/fees for conventional.
I'd be happy to assist you if you are looking for a loan officer.
Have a good night.
Chad E. Bahnsen- Mortgage Originator, NMLS# 127719
Mortgage Network, Inc.- Corporate NMLS# 2668
14 E. Stratford Ave Ste 3C
Lansdowne, PA 19050
Office: 610 622-2212
An average credit score these days (in the mortgage world) is considered to be 680. That's usually the cutoff between getting approved for a Conventional vs. FHA loan. Both loans are fine, but Conventional (a.k.a. Fannie Mae & Freddie Mac) is a higher quality loan.
The cutoff for FHA is usually 620, so anything lower than that is grounds for not getting approved for a loan. If your credit score is 720 or higher, that's what's considered "ideal" to most banks. Having an even higher score can't hurt either.
Hope that helps.
Timothy M. Garrity | REALTORÂ® & Consultant
U S Spaces, Inc. | #RS314897