Credit
GET YOUR CREDIT SCORES
Credit is a very important factor when finding a loan. Different loans programs with different interest rates are available according to your credit score. Probably the best approach in shopping for loans, is to first go to the source and get a look your own credit reports.
THE BIG THREE!
In the Atlanta area most lenders rely on three major credit reporting companies: Trans Union, Equifax, and Experion. There are websites which will let you get copies from all three of these, including your credit scores, for a nominal fee. The advantage of doing this is that then you can then shop lenders and compare the various options without having to pull multiple credit reports or without having to pay for an application fee from each lender just to find out if they have a program for you.
WHAT IS "GOOD" CREDIT?
Generally in my experience 750-850 is considered to be excellent credit. Over 720 is considered to be very good and over 650 is considered to be good. With scores over 600 there are generally normal loans available to those who qualify, but from 580-600 FHA is the only available home mortgage at anything close to a "market rate". A credit score below 580 is becomes more expensive (with some exceptions) and below 530 is virtually impossible without going to what is called "B or C Paper". B or C Loans are at higher interest rates, and sometimes have higher closing costs or discount points and may also require a larger down payment.
Credit requirements for different loans vary over time according to a variety of economic factors. Once you know your credit scores you will be ready to proceed to Step 3 "Loan Programs"
RE/MAX of Buckhead
DAN Connolly
404-370-0050
O. 404-233-4633
Fax: 404-370-0377