Credit Score Buying A House

hey what's going on everybody we get a lot of questions on a very regular basis

about credit score and how it impacts buying a house and your ability to buy a

house so that's what we're talking about today we're gonna get started right now

hey what's going on everybody it is Mark with my Front Range living powered by

Remax integrity and this is the Dave Oliver with community banks mortgage

here in Colorado Springs Dave thanks for being with me I appreciate it dude thank

you and so as all of you are aware I'm a full-time real estate agent here in

Colorado Springs which is exactly why I have a full-time mortgage lender with me

now because I don't know what to tell you in regards to this so Dave talked me

tell me how credit impacts buying a house it's a great question I hear it

you know all the time I think the most important thing is find out where you

stand meaning apply with a lender okay have

that lender pull your three Bureau credit report okay and get a snapshot of

where you are in regards to credit score okay which directly impacts what kind of

a loan you need to get what kind of house you can buy

if you can buy everything so tell me how it impacts what loan I could get what

loan program like again sure so I mean generally speaking the higher your

credit score is the more that will kind of guide you to a conventional loan okay

and the lower your score is you're kind of looking at an FHA loan okay so tell

me why that is FHA is kinder to lower credit scores okay and higher debt to

income ratios okay conventional loan is geared towards better credit scores okay

and lower debt to income ratios okay so you know each case will be different but

you have you have to you don't keep those things in mind as you look at

buying a house and building your plan right all right so uh say I'm a military

person yeah let's throw another loan program out there

sure credits not great what do you think I gotta do

it turns out VA is pretty lenient with credit scores okay

so it's gonna fall more in line with like an FHA setup the VA tends to be

more lenient with debt income okay and credit alright but with that you know

with that said you still have to have a decent yeah score yeah yeah it can't be

- okay but you also made a point early on hey make sure that you reach out to a

lender and get your credit your credit pulled so you know what your credit

score is and what you're working with so yeah let's say somebody's out there

right now hey my credit card company offers me my free credit score yeah

right should they be relying on that I mean it depends on yeah right it's gonna

depend a lot on because there's a lot of there's a lot of programs out there

right now hey free credit score free credit score free credit score I mean

isn't that indicative of what their credit score is? Can be. Not always so what happens this is

dave be very diplomatic what happens is that like these certain places will

advertise running your credit and giving you a score right if it's not one of the

three mainstream credit agencies they're estimating what the model is so okay you

know they don't know exactly what goes into you know the the recipe so so when

you get that score it might be high it might be low who knows so you know I

think it's it's good to reach out to like a lender myself I don't charge

someone for a pre-qualification Oh so if someone wants to apply it say hey I may

be buying now I might be buying in a few months but I want to know where I stand

right okay and so Dave you're not just specifically lending here in Colorado

Springs you can lend anywhere right yep so if they're seeing

this in Washington state still hit you up and you can help them out done it

awesome okay so so what's tell me what a good

credit score looks like roughly yeah number for a mortgage I mean generally

if you're 680 or above 680 or above you'll have access to a wide variety of

loans so 680 to seven sixty you're gonna have basically your pick of loan

programs you'll have access to them yeah and you just have to decide based again

based on time money down payment that income you know whatever the variables

are which fits best for your needs okay so had a couple hiccups in the past

things aren't going that great or I missed a payment here and there my

credit score is not 680 okay so tell me what that looks like

what's lower than six eighty where where can I still qualify in theory yeah for a

mortgage 620 okay you want to you want to hit 620 if if you're below 620 then

you know you real it's gonna take a lot of planning to kind of get into a

position where you'll have access to something decent

okay so 620 is kind of the industry mark of like hey if you're below that let's

we're probably wait we want to try to get you to to a better position and if

you're above that so say you're 620 but not 680 okay you're probably gonna be

looking at an FHA loan okay that's probably your best move but it's

case-by-case so and certainly there's nothing wrong

with an FHA loan no anything that's gonna get you in the house so you are

paying yourself instead of a landlord right it's starting to build that value

in that equity in your home right so there are still definitely options even

if your credits not 850 which I've never seen ya know don't be afraid and you

know a lot of people I think are worried about hey you know I don't want someone

to judge me I don't want that they look at my credit and don't worry about it

like I've seen every piece of credit you could imagine and I'm a professional

problem solver so my job is to help you get to where you want to get to

okay and make that happen so I mean the reality of it is give Dave a call

exactly and let you help help start helping them work through the process

right make sure that their individual needs can be met with their particular

circumstances right right right awesome well hey you heard the man hit

him up we've got his number down below in the comments and it would mean the

world if you would reach out to him ask him questions because the reality of it

is you can be further along in the process than you think or they could at

least get you on the right track to the home buying process so once again Dave

Oliver with community banks mortgage I am mark Hubert with my Front Range

living powered by Remax integrity here in Colorado Springs hope you found value

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appreciate how hope you have a great day we'll see you soon bye