Most real estate lenders will tell you when your FICO score is in the 500’s, you are one step out of jail.
Not to fret, this can be fixed.
Also know there is no way around having a score which is lower than the minimum approval level, being approved.
For example, let’s say you need a minimum of a 620 FICO score to get a home loan.
If your FICO score is 619 – you cannot get a home loan.
These parameters are set by the home mortgage industry, in stone, and they are not flexible.
The catalyst for this loans and lender post has to do with a new client of our who reached out saying she was going to be getting a loan through one of those TV lenders.
The same TV mortgage lenders you see during FOX, CNN and MSNBC news broadcasts.
She called one and they said they would be able to get her a loan.
I asked to see if they sent her an approval letter and she told me that the TV lender said he couldn’t without a purchase agreement.
I had to inform her that we would not able to get an executed purchase agreement without a pre approval letter being submitted with it to the home seller.
In fact, if we don’t have a complete buyer’s package together, when submitting an offer to a home seller, it could cause our buyer to miss out!
The TV lender was doing it backwards. If this were a buyers market, maybe this could work. However, due to it being a hot Sellers real estate market in Santa Clarita Valley, it would be like trying to row up Niagara falls.
She was holding about 60 trees worth of paperwork that this TV lender sent her. However, she had never given up her social security number or any other information to this person in order to be approved.
With her FICO’s in the 500’s – she could not meet the minimum rung to approve for a mortgage loan.
I connected her with our proven and approved local Santa Clarita Mortgage Broker. After they pull her credit and find out what is causing the low score, they will have credit repair resources for her to use.
The one thing that I despise is people being over promised. Don’t get a person’s hopes up for no reason. There is only one way to approach buying real estate, with an expert at your side.
Reach out to me, Connor T. MacIvor, I’ll be here for you 100%. Thanks for reading and sharing with those who could use our help with real estate representation and consultation services.