|
 |
|
|
Credit Scores
|
Your credit scores are pulled from the 3 major repositories including Equifax, Transunion, and Experian. Lenders will take the lowest of the two middle credit scores for 2 applicants or just the middle score for 1 applicant for qualifying and pricing purposes. Most lenders now want to see a minimum of a 620 in order to qualify for a FHA or conventional mortgage loan. This is not always the case, and there are still a few scattered lenders who make loans with lower scores. If the loan meets investor guidelines, it can be sold to Fannie mae or Freddie Mac after funding and the lender should be ok making the loan. |
|
Factors that influence your credit scores include many things. A few of them include the proportation of your outstanding balance to your available credit. Your payment history (i.e. # of 30, 60, 90 dys late on the accout). Other derogatory factors include bankruptcies and foreclosures and how long ago they were. Generally, as something bad gets farther and farther away, it has less of an effect on your credit scores. Normally after something like this, it's always a good idea to establish some new tradelines like secured credit cards, (Capital One, etc.) to reestablish a track record of on time payments. |
|
Things that can help to improve your credit scores include paying off accounts, and not having your credit pulled to many times. I've seen folks do this repeatedly over a short perioed of time and it can really blow it for them in terms of qualifying for another loan. Try to never let collection accounts for small bills get on your credit. These may include parking tickets, utility bills, phone bills, to name a few.
|
|
If your scores are below a 620 and you really want to get a loan, try to work on getting your scores a little higher. Often there are a few things that can be done to improve your scores and there are credit repair companies that can help you with this. Also, I have a service through my credit reporting firm which can identify possible ways to increase your scores. Please let me know if I may be of assistance in this regard.
|
|
|
|
