How your credit will affect your mortgage terms

Do you know your credit score? Well you should, especially if you are trying to get a home mortgage. Lenders will look at your credit scores from all 3 credit reporting agencies and based on the middle of three credit scores, sometimes referred to as FICO scores, here is how you will do:

> 720 - You can basically write your own ticket and just about get a signature loan based on the fact that you have proven that you know how to handle credit and have made keeping a strong credit score a priority. It also probably means that you are blessed to have not had any unforeseeable losses such as job losses, divorce, illness, etc which often ruins the credit of hard-working people. Trust me, I know this first hand.

680 - 719 - This is an ideal credit score range for getting a home mortgage with a minimal down payment, minimal fees, and optimal loan rates.

620-679 - This is where many borrowers fall, and most borrowers won't have trouble getting a loan here as long as they are not trying to use alternative loan documentation .

560-619 - These borrowers may have trouble getting traditional loans with minimal down payments. Options are sub prime loans or government loans (FHA).

500-559 - Borrowers here will have VERY limited options, due to their poor credit histories and most will not qualify for a loan. I strongly recommend getting the credit issues fixed, rather than over paying for a home loan. See below for info on getting your credit fixed.

< 500 - The only loan options available to people with less than 500 credit are hard money lenders, and I do not endorse them. If you have less than a 500 credit score, we are not able to assist you as we do not want to be associated with hard money loans. Also, you have to think about whether or not it is the right time for you to get a loan. If you get into a home and can't afford it, you really haven't accomplished anything for the long haul.

If you don't know your credit scores, visit credit.com to get your scores and get on your way to home ownership.

If you need credit repair assistance, the only company I can recommend is Lexington Law , a nationwide law firm specializing in credit repair.

I hope this is helpful in your journey to become a homeowner. Please contact Consumers Advantage Mortgage to apply for a home loan when you are ready.