What's
an acceptable score to become a homeowner?
Lenders
want to be sure a person has a strong likelihood of making their
payments consistently and on-time. No lender ever wants to foreclose
on a home.
Statistics show that:
A.
Borrowers with credit scores above 800 have only a 1 in 1.292 chance
of defaulting on their loan.
B. Borrowers with credit scores between 700 and 719 have
a 1 in 123 chance of defaulting on their loan.
C. Borrowers with credit scores below 600 have a 1 in 8 chance
of defaulting on their loan.
Income,
job history, available assets, and the property are also considered
in underwriting a loan. Borrowers with credit scores below 600 usually
have to be stronger in these other areas to get approved. Underwriting
is a blend of credit score review along with the other factors.
Don't
despair if your credit score is low
- Your
credit score can be improved over time simply by making
payments by the due date.
- Consumer
disputes about information on your credit report can be resolved
by calling:
Equifax:
(800) 685-1111
Experian: (800) 831-5614
Trans Union: (800) 634-8440
- At
Cherry Creek we have a wide variety of loan programs available,
some of which are very liberal about accepting low credit scores.
- We
can also refer you to someone to assist you in working on your
credit issues and raising your credit scores.
So,
one of the things we discuss at the free "Pre-Approval Consultation"
is your credit score and how it affects your ability to become a
homeowner.
Click here for our complete credit
repair document.
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