![]() ![]() Purchase entitles you to Quicken for 1 or 2 years (depending upon length of membership purchased), starting at purchase.The App is a companion app and will work only with Quicken 2015 and above desktop products. Not all Quicken desktop features are available in the App. Quicken App is compatible with iPad, iPhone, iPod Touch, Android phones and tablets. Standard message and data rates may apply for sync, e-mail and text alerts.14,500+ participating financial institutions as of October 1, 2018. Phone support, online features, and other services vary and are subject to change. Third-party terms and additional fees may apply. Monitoring alerts, data downloads, and feature updates are available through the end of your membership term.“While it’s okay to carry small balances, using too much credit is a bad sign,” points out Manier. If you are making late payments, catch them up and stop paying late. Start by ordering copies of your credit reports to look for inaccuracies - you’re entitled to one free report per credit bureau per year and you can order online. ![]() Your mortgage broker or lender can help you devise a strategy to maximize your score, but there are a few things that you can do right now. Regardless of the program you choose, the higher your credit score is, the better off you will be. To get a VA loan, you need to be an active-duty service member or veteran, while USDA loans are typically only available in rural or semi-rural areas. Both programs also have additional requirements that make their application limited. However, as Manier points out, “Both the VA and USDA programs rely on lenders to determine their own minimum mortgage scores.” That means that if you get a loan, you won’t get penalized for your score, but if your credit score isn’t in the mid-600s, you might find it hard to qualify. The programs themselves don’t have minimum credit score requirements. If you are eligible, the United States Department of Agriculture and Veteran’s Administration mortgage programs offer another way to get a mortgage - and your rate won’t depend on your credit score. “Banks can also set their own minimums, so if you’re on the borderline, you might need to shop around.” For example, as of April 2013, a major lending institution primarily serving the Southern United States had a minimum 660 score requirement for its FHA programs. “Just because your score meets the FHA’s minimum doesn’t mean that you’ll get qualified, though,” warns Manier. Lower credit scores require special underwriting and are less likely to be approved. As of January 2013, the FHA imposed a minimum credit score of 620 for “automatic” underwriting. “Since the government is taking some of the risk away from the mortgage lender, most lenders will take a bigger risk on you,” says Manier. If you intend to buy a property using a low-down payment mortgage underwritten by the Federal Housing Administration, the rules are different. “Your credit score becomes even more important if you need to get a jumbo mortgage or if you need a low-down payment conventional mortgage,” adds Manier. At the time of publication, Fannie Mae raises the rate on the loans that it underwrites if your score is below 740. While notes that a 760 credit score is usually the point at which you get the lowest rate, you might find a lender that gives its lowest rate to borrowers with scores above 700 or 720. However, the break points vary among lenders. “Typically, the higher your credit score, the lower your interest rate will be,” explains Josh Manier, a residential mortgage consultant and private loan fund manager. With a conventional mortgage, the market sets your rate depending on the risk you present as a borrower. How your credit score affects your loan terms depends on the type of loan - and the lender - you choose. However, it’s also true that while a borrower with 759 credit may pay a higher rate than one with a 760 credit score, another borrower with a 630 score might pay the same rate as one with a 770 score. It’s true that when you apply for your mortgage loan, having good credit is better than having bad credit. Real Estate & Personal Finance: What Is Considered a Good Credit Score for a Mortgage Loan? ![]()
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