“If I had a nickel…” How many times have you said that? We speak with all of our Santa Clarita Real estate clients in our offices at some point. When we do get around to the “sit down”, the issue of Credit Score always comes up. If you are watching the Big “faceless” lending organizations on the TV, you will know that they are saying you can buy a home with a credit score, Fico – of 580.
Super – Let’s go out there a buy a home. But, you might want to Hold your Horses – the rules and guidelines that are set forth by those that write the rules and guidelines, when it comes to lending money, might say that a 580 credit score is the minimum required to get financed on a home – The people that write the “rules and guidelines” are different than those that actually lend the money…”
Where does that leave you? Check with a Qualified lender to see where those that actually lend the money want your credit score to be, before they hand you the check.(when buying a home it is usually wired – but you get the point 🙂 )
Squaring away better credit is at the top of anyone’s mind who is intending to apply for a home loan or refinance and existing loan. Good, make that great, credit is absolutely necessary to acquire a loan, and there is even talk about a change that will require a credit score of 690 or higher in order to do so. What a potential borrower must ask themselves before starting the loan process is, “what is my credit score?” followed by “can I improve it?”
Some of the items that affect credit include:
- Paying bills on time
- Debt to income ratio
- Amount of outstanding debts
Reducing outstanding debts and continuing to pay bills on time is absolutely crucial before applying for a loan. The guidelines for lending are certainly stricter these days, but in addition a borrower’s finances have to be organized and display the capability to make payments. Financial questions are buzzing in the air at the moment, being that tax day just passed and income and expenses have been pored over with a fine tooth comb. Knowing how to improve one’s financial status is imperative prior to applying for a loan these days.
If you are wanting to search for homes we have built a Southern California Real Estate superpage and also a Real Estate Search page for the Santa Clarita Valley that corresponds to listings by price.