Because of the recent foreclosure crisis, new credit standards for first-time home buyers (any home buyer really) have been put into place. Depending on which side of the fence you’re on, it’s either a good thing, or a hindrance to buying a home. This article will discuss FICO scores and Mortgage qualifications . Following is a look back at what credit scores used to have to be to qualify for a mortgage, and what they need to be now.
As mortgages are offered in nearly all high street banks and building societies, they are the most obvious place to look for a mortgage broker job. Often mortgage brokers have worked their way up through the company, most often starting in customer services. This form of training will be tailor made to the company that is doing the training as they will only be able to offer in depth teaching on their own way of offering particular mortgage packages, so it is important to consider how you, as a trainee, understands other lender’s packages. However, there are other ways to train for the mortgage broker job. Employers usually run apprentice training schemes where on the job learning is paid for.
So, what does this have to do with getting a mortgage? Well, who extends credit for credit cards? Banks. And, who extends credit (loans) for mortgages? Banks. Zero Down Home Loans: Get 100% Financing with a 580 or 620 Credit Score? FICO scores have to be a lot higher than they used to be to qualify for a home loan. It used to be that a prospective homeowner could qualify for 100% financing and a conventional mortgage with a 620 FICO score in most cases.
In a lot of cases in the past, a prospective homeowner could qualify for 100% financing (zero down home loans) with a credit score as low as 580. It would be a subprime mortgage, but the home buyer wouldn’t have had to come to the table with any money nonetheless. The New Reality: What Your FICO Score Need to Be to Qualify for Zero Down Home Loans. These days, mortgage lenders have raised the bar on what your FICO score needs to be to get a convention loan with a good interest rate.
Nearly every lender deals with some kind of sub-prime loans, so include
traditional lenders in your search. To use your time most efficiently,
ask for loan quotes on the particular loan amount and terms you want.
With these relevant numbers, you can determine which company has the lowest costing loan for your particular situation. Try using one of ABC Loan Guide’s Recommended Sub-Prime Mortgage Lenders. Sub-prime loan rates are usually 1-2% higher for every fifty points
below 650. It’s important though to also look at closing costs when
comparing sub-prime financing. Often a good looking rate can be a more
expensive loan because of high upfront fees. Protect yourself by carefully
reading the details of each loan quote you receive.
Learn more about Obama Mortgage Relief Plan Qualifications.