Signs of housing recovery have been evident in rising of homes prices, sales and construction. Our guest contributor Jeremy Whilhelm of Private Mortgage Group underlines the importance of having a good credit, especially the First Time Home Buyer.
Credit: This is the strongest factor when it comes to purchasing a new home. Good standing credit can save you hundreds, even thousands of dollars in interest. Besides score, lenders also look for clients to have at least 3 trade lines “meaning credit card, installment loans, student loans etc.” These trade lines need to have at least a year history with no late payments. This can be difficult to obtain if you have current credit issues. The good news is I work with a company that helps my clients build credit and also clean past derogatory credit off their credit report so they are able to purchase a new home. For most lenders the minimum credit score to be approved for a home loan is 640. Even if you are not looking at buying for a year or so doesn’t mean you have to wait until you are buying to have a lender look at your credit. Many times clients come in well before they are ready to buy, this gives both of us time to review where their credit is at and make any necessary changes needed to help put them in the best buying position when they are ready!
Jeremy Wilhelm is a Mortgage Planner with The Private Mortgage Group. To contact Jeremy , Please Email him at:email@example.com