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My wife and myself have credit scores around 650 and are having trouble getting a home loan! our mortgage broker told us to pay down credit cards and to bring our credit scores above 620 and he could get us a loan. Since then, about six months later we have been turned down for a least four loans. what is the deal with lenders these days? the rent i have been paying for the last 18 months is only 86 dollars less than what all of the truth in lending disclosures have said would be my monthly payment!! after taxes at the end of the year i would be paying less!! what do i do?
qualifying for a loan
Hi Marksteffen,
People having credit scores generally qualify for a home loan. However, if you have any late payments reported on your credit report, that may hinder you from qualifying for a loan. Can you tell me if you have always been current on your rent payment? You can pull a copy of your credit report, and check the status of your accounts.
Hope this helps.
Regards,
Aaron
how much collateral are you able to put down?
Right now the biggest barrier to getting a loan isn't the credit score it is the amount collateral.
I have a score of 760 but I can't refi because I don't have enough equity.
most lenders don't want to approve more than 75% to 80% of the value of the home. I would concentrates on saving up a down payment.