Perfect credit score not needed to get your dream home (video)
Looking to buy a home but concerned about your credit score?
Your credit score is one of the key factors in determining what type of mortgage and interest rate you qualify for. Of course, the higher your score the lower rate and more options that you may have. However, there are lots of GMFS Mortgage programs available where lower credits scores are acceptable and you can accomplish your dream of home ownership. Some of these options even offer very little or no down payment.
Credit standards continue to loosen.
Good news for homebuyers! According to a report from the Mortgage Bankers Association (MBA), credit standards for home loan programs have relaxed further in September. We’ve seen this trend throughout the year.
The Urban Institute found that the average credit score for mortgages purchased by Fannie Mae and Freddie Mac dropped from 742 to 725 between June 2016 and April 2017 – the lowest median value since the housing crisis.
Remember, 725 is an average and there are home loan programs available that accept credit scores in the 600’s.
How do you check your credit score?
You are entitled to order a free copy of your credit report every 12 months from each of the major credit reporting agencies (Equifax, Experian, and TransUnion) through www.AnnualCreditReport.com. This site is the only one that is government authorized to provide you with FREE copies of your credit report.
Dispute any errors on your credit report and get them resolved as quickly as possible. Also, do not open any new accounts within at least six months of applying for a mortgage.