If you’re like many people, you’re wondering what kind of credit score you’ll need to get a mortgage in 2018 – and you’re wondering what to do if your credit isn’t quite up to snuff for approval on a conventional mortgage.
What Credit Score Do You Need to Get a Mortgage in 2018?
Generally, banks and other lenders will give mortgage loans to people whose credit scores are 640 and above, although there are some programs available to people with credit scores as low as 620.
Some lenders will give loans to people with lower scores than that, but in many cases, the process is grueling – and you’ll need to give detailed explanations about each item on your credit history that contributes to your lower score. With an FHA loan, many lenders will offer terms to people with credit scores of 580 with 10 percent down.
If your credit isn’t quite good enough, read on – we have some tips for you.
What to Do if You Have Bad Credit But Want to Buy a Home
If your credit isn’t good enough to qualify you for a loan, here’s what you can do:
- Start rebuilding your credit by applying for a secured credit card. Many lenders are willing to extend credit to people who provide collateral. In this case, it’s a sum of cash that ensures that even if you don’t pay your credit card bill, the lender has money to take.
- Comb through your credit report and look for errors… they happen more often than you think! If you find something that’s wrong, file a dispute with the reporting agency to explain why it’s wrong.
- Pay down your debt. The lower your debt-to-income ratio is, the more favorably lenders will look at your credit profile, even if your score isn’t as high as you want it to be.
Are You Buying a Home in Midland?
Call our team of Midland real estate agents at 432-698-0411 today.
If you’re looking for a new home, search by school district or search Midland real estate listings by price:
- Midland homes for sale between $150,000 and $200,000
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- Midland homes for sale over $1 million