If you are considering purchasing a home or refinancing—you can go to quickenloans.com or lendingtree.com along with local mortgage lenders in your area—to determine what loan will best suit you—and your family. You can compare closing costs, APR's and Par rates to determine what loan will best serve your—and your family's long-term interests.
Learn how to apply the— “Keys to Success”—in your life
General Guideline of How Lenders Rate Credit Scores
Take your choice of loans at the lowest cost, including risk-based loans
such as stated Income and Interest Only. Be aware that stated Income and
Interest Only loans are more difficult now even with scores over 720.
You qualify for conforming, conventional loans. You’ll pay slightly more for
risk based loans.
You may take a FHA/VA loan or even a low-downpayment loan with desktop
underwriting. FHA/VA now require a middle score of 620 or higher.
You can qualify for a sub-prime loan, but your interest rate will be significantly higher. Expect a prepayment penalty.
Most lenders will deny your loan: but there are a few “hard money” sub-prime
lenders who will approve a loan if you have sufficient down payment. Mortgage
brokers have access to these wholesale lenders.
Only the rare sub-prime lender will approve a loan for someone with a score below 500, and a large down payment will be required---usually 25 to 50 percent. Other conditions will apply as well.
Other Key Tips:
If your home is foreclosed--5 year moratorium on purchase of another house with most lenders
After Bankruptcy Discharge (Chapter 13) you can apply for a loan if middle score is 620 or more.
Chapter 7 with no foreclosure FHA loan available after 3 years.
Judgments on your credit report. Judgments must be paid.
Judgments not paid will stop the progress of your score going up.
About This Article:
The above article was written by Thomas (TJ) Underwood. Thomas (TJ) Underwood is an active real estate broker in the state of Georgia and is the writer behind The Wealth Increaser, Home Buyer 411, Home Seller 411, The 3 Step Structured Approach to Managing Your Finances, Managing & Improving Your Credit & Finances for this MILLENNIUM and CREDIT & FINANCE IMPROVEMENT MADE EASY—FREE GUIDE.
He is the creator of TheWealthIncreaser.com where he regularly blogs about helping consumers improve their credit, finance and real estate pursuits in an intelligent, consistent and proactive manner. He’s always looking for ways to make intelligent finance improvement happen for those who “sincerely desire” success in their future.
You can contact him from a number of sources but the most direct way is to contact him through the contact us block that can be found at the bottom of this page.