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DOES MY CREDIT HAVE TO BE PERFECT TO BUY A HOME

  • October 19 2013 - La Sierra
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Answers (9)

You have asked a very simple question, the simple answer in absolutely NOT if you are paying in all cash!!, then who needs credit. On the other hand if asked "Do I need good credit or "perfect" to qualify for a loan? Then all the answers been answered by all those professional realtors are good advice to take
  • November 08 2013
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Profile picture for DanGorfinkle
You do not need perfect credit, but you do need about 640 or higher.  In addition, you will need steady income (must show past two years of tax returns), relatively low debt-to-income ratio, some sort of savings for a down payment.  Ask around to friends and family to find a trusted and knowledgeable lender.  They should be able to explain everything in detail to you.
  • October 23 2013
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Your credit does not have to be perfect but you do have to have a good credit score to purchase a home.  You will need a 640 or better and the higher your credit score the better your rate and terms may be.  Make sure that you pay your bills on time, even if it is the minimum payment so that you don't have late payments.  This is a huge problem for many.  Also make sure that no money goes into your account that you cannot account for as this is a red flag for lenders.  Your debt to income ratio is also figured into qualifying for a home as well as a good work history.  Consult your agent and a good mortgage lender to find out what you can do if you are having some issues with your credit.  They may be able to help you bring up your score quite easily and purchase a home.  
  • October 23 2013
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Your credit does not need to be perfect, however, working with a knowledgeable lender who can review your credit with you will help in getting you the right program. Also, a good lender will put together different options for you and let you choose the one you feel is right for you and your family. I hope this helps
  • October 21 2013
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You do not need perfect credit to Buy a home.  Nowadays there are many different lenders and programs that can help overcome lower credit scores. If you have any questions about some of these programs or if I can be of any assistance please feel free to give me a call. Thank you and I hope this helped!
  • October 21 2013
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Certainly not! Although it does help to have great credit, it is possible to get a home loan without it. For example, I have been able to give out loans with scores as low as 580. So if you are in that range or above, you will have a better shot at getting a loan. Also, it is important to keep in mind that your ability to obtain a loan relies on other factors as well. These factors include income, expenses, assets, liabilities, debt, down payment, employment, as well as credit score. If you are seeking a loan I recommend that you speak with a lender like myself to see if your credit works. We would be glad to speak with you to help you get the loan that you need. Well if you have any other questions or need a loan, please contact me through the information on my profile page. I hope this helps and good luck! 

  • October 21 2013
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People with less-than-perfect credit can still qualify for a mortgage, however, they will likely pay a higher interest rate and/or points.  Folks with better credit scores and lower debt-to-income ratios not only enjoy lower interest rates, they often qualify for different types of loan products as well.

The person who can answer this question best is a reputable mortgage banker who will even be able to give you tips on how to improve less-than-perfect credit.
  • October 19 2013
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Profile picture for Scudo Realty
There are different levels of credit, which will affect your interest rate, etc. The best start to any home search is meeting with a lender. They will be able to advise you on the amount of home you can purchase with your current credit score, income, savings, etc. 
  • October 19 2013
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It is best to review your credit with a mortgage lender.  It depends on what you consider less than perfect.

Late payments in the last 12 months, collections, liens and judgements which are unpaid can impact they type of loan you qualify for.
  • October 19 2013
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