Home Mortgage Loan: Clean Up Your Credit
Before you even apply for a new home mortgage, if you have credit issues it’s a good idea to clean up your credit. Otherwise, you will either end up with a higher interest rate and higher lender fees or worse yet your loan maybe denied. Therefore, do yourself a favor and clean up your credit first. When you call in to talk to a loan specialist, please be honest. You know you’ve had credit issues. So tell the truth. It makes it a whole lot easier if you just tell us from the start what is on your credit report rather than hoping and praying we won’t find out. Banks require us to pull a credit report on every single loan. Therefore, we will find out what’s on your credit report. By being upfront, we can help you clean up your credit, prior to the home mortgage loan process. This will save you money in the long run because your interest rate will be alot cheaper.
So what can you do?
First off, if you have credit card balances that exceed 50% of your available credit limit, then pay down your credit card balances. This will raise your credit scores. Secondly, pay your bills on time. If you pay your bills on time, this improves your credit scores. Thirdly, if you have liens, collections, or judgements, pay them off. This will raise your score. Do not pay them off after we pull your credit report because the banks will base your interest rate on the middle fico score that shows on your current credit report not the new credit report.
Co-Signed On A Loan:
Fourthly, if you have co-signed for someone you need to be aware that this debt is counted against you. Therefore, you might want to have the other person refinance this debt. Then, take your name off the debt prior to applying for a home mortgagel loan. However, you will need to make sure you give yourself enough time so that this information will be reported to the bureaus. Then it needs to be updated on your credit report. Remember there is a timing issue from the time a loan is paid off until it is actually showing as paid off on your credit repCoort. If an item gets paid off at the end of the month, don’t expect your credit report to reflect this payoff on the first of the new month.
What Low Fico Score Programs Do We Offer?
We offer low fico score programs for borrowers on both FHA and VA loans. We can do a 580 FHA loan with only 3.5% down. If your fico score is less than 580 on an FHA loan you will need to put 10% down. On a VA loan, one does not need to put any money down. We do require a minimum fico score of 580.
When Considering Your Next Mortgage
When considering your next loan, consider Arizona Wholesale Mortgage Inc. Experience does matter! We’ve been in business since 1998. We are now serving the state of Arizona and coming soon California. For more information go to our home page at www.azwm.com.