Greg Ricks NMLS #2075538

Did you know.....

Some predatory auto lenders will pull multiple credit scores to find your lowest score, just to give you the highest interest rate. In the mortgage industry, we use your middle score and go off that. So, if you have a 560, 679, and a 678, we will use the 678. We don’t care about your highest score or the lowest score.

What’s some things y’all have done in the past to increase your credit score? I’m no expert with credit scores but here’s some advice:

•Clean up your report by disputing and paying off any accounts under 5 years old.

•Have accounts that have been open with good payment history for 2 years or more.

•Keep your credit utilization under 30% meaning if your limit is $1000 only use $300 and pay on time.

•Be patient and play the game. It can take a couple years to get a great score.

Make this the year you work on buying some real estate. The average 30yr old has spent $100k in rent. That same $100k could’ve went into equity in your home. With home values going up since the crash, it’s possible to have more than that $100k equity in your home. If you move and sell, that’s $100k in your bank account. If you move out of your rental, you might have to fight with the landlord for your deposit back. It’s easy to fix your credit. There’s down payment assistance and programs available to go zero money down and zero closing cost. Did you know that a person on Section 8 can use their housing voucher to buy a home? Interest rates are low. Start working towards buying.

What’s a good credit score to buy a house?

Your credit score should be higher than 600. We use your credit score to determine your APR which can include your interest rate and mortgage insurance. The higher your score the lower the rate. This could be a $200/mo difference depending on the price of the home. We don’t approve you for a loan amount, we approve you for a monthly payment amount. So the least you spend on things like interest, mortgage insurance, homeowners insurance, taxes, homeowners association, the more you can get approved for based on your income. As far as credit, it’s a process to get your credit score over a 700. A 640 will get you any loan product (FHA, Conventional, USDA, etc...) or DPA out there. Waiting to get to a 700 could cost you one hundred thousand in today’s market.