Credit is one of the 3 C’s considered when weighing someone’s worthiness regarding lending, especially the first time homebuyer tax credit, the other 2 are Capacity and Collateral. It is, however, the first thing considered by lenders when reviewing your request to purchase. It consists of many things, the first is your scores which are determined by the Big 3; Trans Union, Experian, and Equifax. These 3 scores are received when credit is pulled and the mid-score of the 3 is what is used to determine your creditworthiness and your interest rate.
Although the magic number of ‘620’ is what many lenders require as a minimum score. There are numerous lenders available that will make decisions based on scores as low as 600 – 619 depending on the program. In addition, credit repair is an important factor if your credit is currently problematic and/or thin. We have great partners we work with who do an amazing job of working with our clients, so contact us today and don’t let it be the reason you don’t become a homeowner.
Next Wednesday, we will continue our discussion on first time homebuyer tax credit and its many facets in determining creditworthiness. If you have additional questions before our next installment, feel free to message us on our Facebook Page.