Credit Score Affecting Home Purchases

Credit Scores in today's home buying market is so important. Basically anything you buy relies heavy on your credit score.

Credit Scoring is done by three agencies called Transunion, Experian and Equifax. The creditor assess you ability to pay by your credit report. There could even be a difference of 100 points between each agency. Many lenders use the middle score to decide if you will get the loan.

In the past you could obtain a loan with a 620 which was acceptable for a Fannie Mae and Fannie Mac investors. However thinfgs have changed .Youneed a 720 or better to get the best possible interest rate on you loan. Lower scores can definitely affect your interest rates, loan to ratio or loan fees. Sometimes even a larger down payment is required. In these times that maybe almost impossible.

There still are loans from FHA investors accepting as low as 600. Don't forget VA loans.

To tell you the truth if you are thinking of investing in a house obtain you credit report with scores from each of the agencies and see where you stand.Planning a budget now will definitely help.

DO you know your debt to ratio ?

Many people do not know what debt to ratio means. Debt to ratio means the total monthly payments divided by the total monthly gross income.If the ratio is over 50 % the banks may not approve your loan.


Remember in you calculations you must include the following:

Gross Monthly Income

Salary
Child support
Bonuses
Alimony
Commissions
Spouse Salary
Other
Child Support
Total Income



Monthly Fixed Income


Rent or Mortgage
Automobile
Automobile
Alimony
Child Support
Bank Installments
Other


Before taxes Proposed Loan Payment
Total Payments


Evaluate your situation abnd see what ways you can decrease the amounts.You may even have to have a home based business to help with the income.


So what do you do ? Contact the lending institution before apply for any credit to determine what their debt to ratio polices are.

What is credit ?

Credit is defined as trust-worthiness and credibility.Getting credit is an art. It is a privilege . It can easily be gotten and easily taken away. I know from first hand experience both views.Credit repair can be a nightmare.

Credit must be handle from the minute you make your first purchase. When you use your credit card you should start thinking on ways to be debt-free. Yes debt-free. Credit can help you when you need it but it can destroy things if taken for granted.

It is never too late to start planning for being debt free. Yes it can be done but you need to want to be debt free. You need to want to have financial freedom. Yes there wil be people around you saying impossible ..but is it ?

No it is possible but you need to start with a call and say "I need helpwith my credit score.". "I need guidance" . What do I need to do to set me free ?

Do you know what your credit score is ?

Many people do not know what their credit score is until they get turned down for credit. What a devistating feeling when your heart is set to buy your dream house,a car or even start a business just to be told you don't qualify.A feeling of hopelessness or helplessnes starts creeping in.You don't know where to go for help.

I know first hand how that feels. I lost my house,my car and my job. No place to go..I did not know where to turn.I thought I could just make a few calls and repair my credit myself..boy was I wrong.It wasn't until I became a Certified Credit Counselor did I really understand what I had to do. I had to spends hours and sending letters. It was nervewracking.

I came across a wonderful company that does credit repair and gives you a personal assistant and financial assistant and so much more.I vowed to myself that if I could help people not go through what I did I would help them .

I am working with a team of dedicated,goal driven individuals who are on a crusade to make a difference in people's lives.Each has their own story to tell.I truly enjoy working from the comfort of my home and having the satisfaction of knowing I am helping others reach their financial destination of financial freedom.

My advice is to obtain your free credit report and see where you stand. Believe you me you do not want to be surprized.