What Is a Good Credit Score for Buying a House In South Florida?
While you can qualify for a home with as low as FICO 500 it is EXTREMELY difficult to qualify for a home loan in South Florida and impossible to get a great rate.
However, having a 620 or higher credit score gives you best credit options. FICO scores are calculated to determine the probability of credit users paying their bills. FICO scores have become the lending industry’s benchmark for credit-granting decisions.
No other score has the same effect on the majority of lenders.
However, not all lenders use FICO scores to determine creditworthiness. Some lenders use scores from other agencies such as Scorex.
Many lenders look to the three major credit-reporting bureaus — Equifax, Experian and TransUnion — in making their lending decisions.
South Florida Homebuying Guidelines
Credit scores range from about 300 to 850. According to Freddie Mac and Fannie Mae, which purchase mortgages from banks and resell them to investors, a FICO score above 620 is considered good. However, says Fair Isaac, “A 620 score doesn’t mean you’re going to qualify for the best rate. It means you’re going to qualify for a standardized rate, or a prime rate. ‘Prime’ is a broad category, so lenders will have different loan products that classify as ‘prime’ rates.’ ” The interest rate lenders charge their most creditworthy customers is described as the prime rate. The prime rate is based on the fed funds target rate set by the Federal Reserve.
Most mortgage applicants have things to clear up financially before being able to achieve a good credit score.
Consumers should regularly review their credit reports to make sure there are no errors on them. Any adverse-credit indications, accounts showing payments more than 30 days late, collections, judgments, bankruptcies or foreclosures will lower a credit score.
It is best to pay off old accounts, judgments and collections before applying for a mortgage. And after these accounts are paid off, wait until they are being reported on your credit reports as “satisfied” or “paid.” We have a proven and effective system to help you.
So what score do I REALLY need?
A credit score below 620 is considered subprime.
The subprime lending category is for borrowers whom the lender determines to be risky loan candidates. Scores that fall short of 620 may bring about lender investigation. Applicants will be required to provide additional documentation to prove their creditworthiness. Subprime lenders generally request bank statements and W-2s from applicants. Borrowers with credit scores under 620 will generally pay higher interest rates.
Mortgage Loan Qualification
A credit score is only part of the mortgage loan qualification process. Other factors such as employment history, income and debt-to-income ratio affect lending decisions. Ultimately, it is up to a lender to decide whether to extend credit to a mortgage loan applicant.
At Crown Credit we want to put you in a position of Credit Authority.
A position where you can buy a house car or just apply for things you need and know that you will be offered the best available choices and where YOU the consumer have buying power!