Sunday, June 26, 2016 - Article by: Chris Arco - 1st Nationwide Mortgage -
As you move from the age of 20 into your 30s, 40s, 50s, and so on, a person's credit score will let lenders find out numerous things about you.In particular, it lets lenders find out the type of borrower you are. It will show them if you pay your bills on time the number of credit cards you have, and how much you charge on your cards.
They'll see if you may charge close to the maximum limit, charge half or charge less than 30% of the maximum limit. A quick review of your credit report will tell all.
Get A Free Credit ReportOn a yearly basis, you are allowed to see your credit report at no cost to you. It is a great opportunity to check your payment history, account accuracy that shows your credit limits and correct debt. Make sure to correct any errors that may impact your credit score and mortgage approval chances. Remember that the best interest rates and terms strongly correspond with borrowers who have a high credit score.
Credit RequirementsThroughout the great recession, the majority of lenders tightened their lending guidelines to make certain that borrowers are able to repay their mortgages. During that time, millions of homeowners owed more than their homes were worth.
However, a multitude of new loan products have recently prompted a loosening phase by lenders even for applicants with lower credit scores. While, it is true that having a foreclosure, deed in lieu, or short sale can impact your credit score for many years. In an effort to stimulate home buying activity, lenders have begun to approve y yes to borrowers. In some cases, lenders request other documents if the credit score is not very strong.
Other Ways to Get ApprovedLenders still have to determine the risks of a prospective borrower prior to approving them for a home loan. Nowadays, lenders are making use of the borrower's other financial information to buy or refinance their home.
It really means that borrowers with challenges when it comes to credit, employment, or monthly income - and who would have been denied before, could now be qualified for a home loan using alternative documentation.
Contact 1st Nationwide Mortgage to explore cost-effective mortgage options.
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