The Good Enough Mortgage Loan

When people set the intention to improve their credit scores, the goal is usually to qualify for a loan that is currently out of their reach.  Home mortgage loans are the grand prize.  Owning a house gives you financial stability and generational wealth in ways that other things you can buy on credit do not.  A house is an income-generating asset in ways in which vehicles are not, even if you use the vehicles for business purposes.  Home ownership is unaffordable for most people, but your credit score is not the only factor that determines whether you can qualify for a home mortgage, or whether you should agree to it if you do qualify for it.  Paying a mortgage is a marathon, not a sprint, and which real estate property you can afford to buy depends on many factors, only one of which is your credit score.  For advice about improving your creditworthiness with the goal of qualifying for an affordable home mortgage, contact a Plantation credit repair lawyer.

Yes, It Is Possible to Qualify for a Home Mortgage Loan If Your Credit Score Is Less Than 700

Applying for home mortgage loans seems like a shining example of “how the other half lives.”  The clients of mortgage lenders tend not only to have brag-worthy credit scores, but also six-figure incomes and, as often as not, they have already owned a real estate property before, so they can sell their old house and use the proceeds as a down payment on the new house.  If you have none of those things, do not despair.  You may still be able to buy a house, even though you may end up with a fixer upper in Belle Glade, rather than a stunning beachfront property in Boca Raton.

Some mortgage lenders will lend to you if your credit score is in the “good” range, defined as between 670 and 723.  The difference is that the loan amount you can get will be less, hence the fixer upper in Belle Glade, or perhaps a condo or townhouse in one of Broward County’s less glamorous municipalities.  Your interest rate on the mortgage will also be higher than it would be for someone with a credit score borrowing the same amount of money to buy the same property.  If your mind is made up to buy the property, this will not deter you from buying it.  Your monthly payment will only be slightly higher because of your less than spectacular credit score, but you will pay much more interest over time.

The best solution is to seize the moment and buy the property.  Pay more than the monthly payment each month, lowering the amount of interest you pay over time.  Meanwhile, as you keep up with mortgage payments, your credit score will increase.  In a few years, you may be able to refinance for a lower interest rate.

Work With a Debt Lawyer About Qualifying for a Home Mortgage

A South Florida debt lawyer can help you get a home mortgage loan even if your financial history is less than perfect.  Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.

Source:

finance.yahoo.com/personal-finance/buying-a-house-with-good-credit-223044699.html