Now more than ever lenders are relying on the FICO, or credit score, of buyers in order to determine if you can buy a home. Since the downturn in housing starting in 2007, more emphasis has been placed on a high FICO.
Some lenders have demanded FICO scores of 720 or higher (almost perfect credit) for their loans. This has scared many buyers out of the market, because, let’s face it, not all of us have perfect credit.
As time has gone on and the market has recovered, lenders have been more willing to bend to lower credit ratings with good compensating factors. Most people think that they must have at least a 640 FICO in order to buy a home. But, Real Help Real Estate works with lenders that can approve loans as low as 530 FICO.
Before you buy, it is a great idea to find out your credit rating really is. Contact your local real help real estate broker and you will be connected with a local professional mortgage lender will provide you a free credit report and let you know exactly what your FICO rating is.