Will a low credit score prevent you from getting a loan to purchase a new home?

Asked by Maurice Bethea, High Point, NC Sun Sep 4, 2011

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Claudia Gonzalez’s answer
Claudia Gonz…, Agent, Davie, FL
Wed Sep 28, 2011
Hi Maurice,

Credit score is important; however, there lenders that will allow you to use alternative credit lines like rental history, utility bills, insurance...etc. to raise your credit line. Wells Fargo being one of the lenders with this types of programs. Do not discourage about buying get with a good lender that will help you prepare to be mortgage approved buyer.
0 votes
Scott Godzyk, Agent, Manchester, NH
Sun Sep 4, 2011
A low credit score can hinder you if you do not have a down payment, the only way to know for sure is to meet with a local and trusted loan officer who can look at your credit score, income, expenses and financials as a whole and let you know if there are any mortgages available given your financials and what the costs and down payment needed are.

http://www.trulia.com/blog/scott_godzyk/2011/08/how_do_i_kno…


Please see my blog for a full list of tips and advice for getting a mortgage
Web Reference:  http://www.ScottSellsNH.com
1 vote
Chuck VanHook, Agent, High Point, NC
Mon Sep 5, 2011
You will generally need a 620 credit score or higher, but it is best to speak with a qualified loan officer to find out for sure exactly how much of a loan you qualify for. Keep in mind the costs associated with buying a home also:

1. Appraisal fee - $350 - $450
2. Earnest Money - $500 - $1000
3. Due Diligence Fee - $250 - $500
4. Mortgage loan down payment - For an FHA loan, only 3.5% of loan amount.

You always want to have a full home inspection, termite inspection and even a Radon test once you have the home under contract, but those fees (approximately $400 -$500) can be paid for by the seller. When I work with home buyers, I always get the sellers to pay for at least most of by buyer's closing costs, so the cost of their inspections ends up being paid for by the seller. And of course, the sellers always pay all real estate commissions, so do hire a Realtor as your buyer agent and take advantage of their free services.
0 votes
Trevor Hunti…, Agent, Port Townsend, WA
Sun Sep 4, 2011
Scott is correct. Seek out a trusted (or well referenced) loan officer and have them walk you through what you will need to do to improve your credit rating and get you into a home. A good lender should be a happy to help you so that down the road they can help you finance your home.
0 votes
Crystal, , Greensboro, NC
Sun Sep 4, 2011
There are resources that can evaluate a low credit score along with other factors to qualify you for a loan.

Wells Fargo
Self Help Credit Union
& NACA

If you have any questions let me know and I can provide additional resources.

Have a Great Holiday.

Crystal
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