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Does Anyone Qualify for a Mortgage Anymore?

Credit Scores
Credit Scores
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You would have to search back about 40 to 50 years to find rates equal to our current rates. Then why aren’t people buying homes or refinancing? Well today Fannie and Freddie have set the bar so high very few people qualify under their guidelines anymore. The lending environment has pushed the regular Joes/Janes right out of the market. Only the privileged few can qualify.

The average credit score before the melt down was 680 – 720 this was considered an excellent score. Now you will need a 760 or above to get the same pricing for your home loan. Most lenders offering FHA before would go down to 580, then 620 and now recently increase it to 640.

What’s in a credit score; You would be surprised to hear that your score is your lifeline to the best rates available, high scores, low rates. Making sure you have and keep your high score is imperative to saving money on interest over the term of any loan you apply. Home, auto or student loans rates can and are affected by your score. Credit card companies offer lower rates to borrowers with high scores.

How can you control your score?

  1. Pay all your debts on time. If you don’t know what a 30, 60, 90 day late is call your creditor and ask them to explain it. It’s important you know this. 1 30 day late can drop your score 30 to 60 points.
  2. Never go over 50% of your credit limit on credit cards, 33% is even better.
  3. Try to keep your accounts to a minimum; having multiple credit cards is hazardous. Try not to go over four.
  4. Check your credit often at least twice a year. 80% of American’s have errors on their report. Get them fixed promptly before they lower your scores.

You can get a FREE report at www.annualcreditreport.com

Get some credit repair HELP! click here

With some effort you too can get your scores up and qualify for a loan.

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