Today in our Mortgage 101 series we are highlighting how you can qualify for a mortgage and how your credit score can effect your qualification.
What do lenders use to qualify a borrower?
Below is a list of the basic items lenders review when a borrower first applies for a loan. Keep in mind that additional information may be requested based on your personal circumstances.
- Downpayment & Closing Costs
- Proof of Income & Assets (Pay Stubs, W-2’s, Tax Returns and Bank Statements)
- Debt to Income (DTI)
- Your Credit Score
What is the minimum credit score I need to qualify for a mortgage?
Why do you need to know what your credit score is? The simple truth is most lenders have hard and fast rules about the minimum credit score they will accept for a borrower to qualify for a loan. Keep in mind that every lender has different qualifications, but generally the minimum FICO score is 620.
What if I have credit challenges?
- Credit Counseling: Our on staff credit counselor can take a look at your circumstances and create a strategic plan to get your credit back on track.
- Lender Programs for Low Credit Scores: At Mortgage Explorers, we are proud to work with a variety of lenders. We can take a look at the loan programs our lenders offer and see if any fit your circumstances.
Advantages to having a higher credit score
Once your score is above a 620 you may be eligible for additional loan programs that offer lower down payment options, lower interest rates and lower closing costs.
Want more information on our loan programs and how they can help you? Fill out our no obligation pre-qualification questionnaire and a representative with contact you within 24-48 hours!