Monday Morning: Answers to question during yesterday’s Open House tours…

The minimum FICO score requirement for a conventional mortgage is 620, but most approved borrowers have scores significantly higher than this threshold. In fact, the average FICO credit score for an approved conventional purchase mortgage is 752 as of January 2017. If you don’t have rock-solid credit, however, that doesn’t necessarily mean you can’t buy […]

via Can I Get a Mortgage With a Low Credit Score? | Markets & Stocks — Good Assurance

Thank you for taking the tour with us yesterday. Your interest in the properties that you enjoyed viewing and found to be very suitable for you might require additional qualifying on your part.

Enjoy the referenced article which answers some of the questions you were asking.

Do You Want a 203k Mortgage Loan

Do You Want a 203k Mortgage Loan

Move-In ready properties like those you are interested in; usually command attention from people with high credit scores. We have some methods that should show how credit companies view your records to differentiate your credit score during mortgage processing.

Would you exercise these strategies, so you can improve and even benchmark your credit score yourself?

  1. 1. Reducing Debt

Do that exactly! Pay down what you already owe as much as possible without taking away from another part of your obligations. If your income is $60,000/year; you should owe no more than $25,000 when you add all your living and household expenses (present rent included) for that same year.

  1. 2. Remember to Check Your Credit

Your 3 credit bureau scores say a lot about you. Many resources are available for you to get yours free but don’t use them every month. Once you have it; just start doing the following:

  1. 3. Get Ahead on Bills

Pay on-time – if only the minimum now and add some more later. But pay it now. Many lenders requiring the minimum on the due date can notch a few points on top of your credit score. We can help you get your free credit score now.

  1. 4. Zeroing-out Credit Cards

Getting a store credit card to establish credit is a myth. Avoid them – join a credit union and pay your savings account as if you were paying a credit card minimum payment every month. And if you’re in the market for a new home, tell your credit union what you are doing every chance you get. Example; name your account, “my new house.”

5. Hold Credit Card Accounts

If you have many credit cards and debt, don’t close them abruptly. Let them expire with zero balance then tell them they can go. They will do everything to lend you money. Let them sweat! Your debt-to-credit ratio will reduce steadily. And thus, your credit score will rise quickly. Note: their game is to increase your score to inveigle you to consume money – so become determined to win that game.

I hope you caught that?

6. Adding New Jobs

Add another pay stub to show lenders how much you’ll be bringing home going forward but you may want to stay with one of those incomes for 2+ years.

7. Making a Major Purchase

Your major purchase, and the only major purchase, is sufficient cash on hand when you’re buying a house so that you can pay for your down payment, closing costs and insurance. Anything else can wait until you are no longer renting/borrowing your shelter. Consider our Rent vs Buy blog post several months back.

8. Marrying Someone with Better Credit

Make the new home a wedding gift to you and yours-truly. Make the wedding vows together with getting a home loan.

9. Get a Co-Signer

Just getting out from college and don’t have 2 years on the job? Ask Mom and Dad or your big uncle to help you. They have more confidence in you than any institution.

Bottom line is if you are inquiring about credit requirements, it’s never too late to start. Those were principles and practices Rodwell Building Services takes much pride in working with you every step of the way. We are here to guide you into qualifying for any type of mortgage and construction loans.

Always send us your questions – we love helping you derive solutions and answers. It’s a custom world!

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About Rodwell Smith

Third generation builder and real estate developer. With a combination of real estate and construction contracting experience, I have been responsible for overseeing day to day management of property acquisitions and sales, customer developments, tenant build-out, capital improvements and base building projects including build to suit, sealed bid renovations and design build contracts.

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