Posted on: 06th Mar, 2012 12:04am
Buying a home is a long-cherished desire of many of you. However, in order to become eligible for a home loan, you need to pass through certain criteria. One important criterion is of course your credit score.
Your score is a reflection of your financial as well as psychological characteristics. If you have blemished history of defaults, late payments etc, your score gets hurt. Usually, the credit score range used by the lenders to offer you a conventional loan is at least 700 to 720. Again, for the federally backed FHA loans, the credit score demanded by the lender is at least 600 to 620.
Anyways, apart from credit score, there are many other factors such as the down payment amount, your financial health, your budget (yearly income and expenses), annual taxes that you pay on your property, monthly payments that you make on your credit cards etc matter a lot in determining your eligibility to get approved for a mortgage loan. In case you fare well on all these counts, then you get approved for the loan quite easily. However, in case you fare badly on some counts, you still may be eligible for the mortgage loan in case you fare well on other counts. Anyways, whether or not you will be eligible for the mortgage loan, finally depends upon the discretion of the lender. There is as such no hard and fast rule to determine your eligibility to get approved for a mortgage loan.
Your score is a reflection of your financial as well as psychological characteristics. If you have blemished history of defaults, late payments etc, your score gets hurt. Usually, the credit score range used by the lenders to offer you a conventional loan is at least 700 to 720. Again, for the federally backed FHA loans, the credit score demanded by the lender is at least 600 to 620.
Anyways, apart from credit score, there are many other factors such as the down payment amount, your financial health, your budget (yearly income and expenses), annual taxes that you pay on your property, monthly payments that you make on your credit cards etc matter a lot in determining your eligibility to get approved for a mortgage loan. In case you fare well on all these counts, then you get approved for the loan quite easily. However, in case you fare badly on some counts, you still may be eligible for the mortgage loan in case you fare well on other counts. Anyways, whether or not you will be eligible for the mortgage loan, finally depends upon the discretion of the lender. There is as such no hard and fast rule to determine your eligibility to get approved for a mortgage loan.
I want to buy a home. I earn around $55K per year. The home which I want to buy will cost me around $251,900. My credit scores are 688-708. Could I possibly be approved for a mortgage of this amount? Any insight would be appreciated.
The lender will consider your middle score in order to give you a loan. If your middle score is less than 700, then you won't be able to qualify for a conventional mortgage. You will have to go for a FHA mortgage in that case. You can even check out the given calculator in order to find out how much loan you will be able to borrow: http://www.mortgagefit.com/calculators/howmuch-borrow.html
You could very well qualify for the purchase.
We need more information to give you an idea what loan amount you could get.
Need to know:
1. Annual taxes on the property
2. Monthly payments that are on your credit report
If you have little or no monthly payments on your credit report, you probably qualify for that purchase as long as you have the 3.5% minimum down payment either in your accounts now or can get as a gift from a relative.
We need more information to give you an idea what loan amount you could get.
Need to know:
1. Annual taxes on the property
2. Monthly payments that are on your credit report
If you have little or no monthly payments on your credit report, you probably qualify for that purchase as long as you have the 3.5% minimum down payment either in your accounts now or can get as a gift from a relative.
Before completing a mortgage application or even strolling through an open house, make sure that you are prepared for the mortgage application process. You'll need to know these three things:
- Your credit health
- Your monthly budget (income and expenses)
- Your mortgage budget (home price and available down payment)
- Your credit health
- Your monthly budget (income and expenses)
- Your mortgage budget (home price and available down payment)
Hey Bella,
From what you've stated, it seems like you would be fine for an FHA mortgage. My advice would be to get pre-qualified to see how much mortgage you'll be able to get. Check out the calculator that 'Niicss' posted and you should be able to get a pretty good idea.
From what you've stated, it seems like you would be fine for an FHA mortgage. My advice would be to get pre-qualified to see how much mortgage you'll be able to get. Check out the calculator that 'Niicss' posted and you should be able to get a pretty good idea.
With credit score of 688-708, you may be allowed the required loan amount by some lenders. Your lender will also take into consideration your income so as to offer you the loans. However, you can easily get a FHA loan.