The entire mortgage application process might feel cumbersome. It is difficult to understand and control every part of the transaction. That’s your lender’s job! There are some things you will need to provide your lender. Making sure your credit is in good shape is one of the best things you can do. That seems obvious but many people don’t stay on top of their credit as they should. Below are the type of credit scores you’ll need to qualify for home loans in Frisco, Dallas, Plano, and Prosper .
Not all lenders will have the exact same minimum credit score requirement. VA doesn’t have a minimum credit requirement. The lenders that do offer VA loans will have their own set minimum score usually somewhere between 600 and 640. FHA loans tend to be more relaxed on some guidelines. You can get a FHA loan with just 3.5 percent down if you’ve got a credit score of 640 or higher.
A minimum credit score doesn’t always mean you will be approved. The entire credit profile will be reviewed. Most lenders will use a automated underwriting process through their available investors. Most lenders will view your credit as fair if you’ve got a score ranging from 680 to 699. 700 to 739 would be good. Typically 740 or higher will get the best mortgage rate, and can also help you save on private mortgage insurance premium costs. The better the score and the more equity will equate to the lowest rates.
Regardless if you have Excellent credit or are just starting to work on your score, it’s never too early to connect with a mortgage lender and start taking action towards home ownership. Contact Todd Frank Home Loans in Plano, TX to talk with a dedicated expert about what you can do to qualify for the best home loans in Dallas, Denton, and Collin Counties.