With today's more stringent lending requirements, it keeps getting harder & harder to get many potential home buyers approved for a mortgage.

   HVCC appraisal guidelines, income & down payment verifications are just a few of the many issues that can trip you up along the way in the process from application to closing.

  But the one place that we know is good enough or not from the very beginning is your Credit score, commonly referred to as your FICO score. All lenders and loan programs are credit score driven. Within reason, if your credit score hits a predetermined number, then you will probably be able to get a home loan. It has been set up this way, so that a software program can pretty much approve or deny your application.

So many a prospective buyer will have a credit score that is too low to qaulify because they had a joint account with a ex-spouse ,that was suppose to pay but didn't. Sometimes a person would co sign for a family member to get a loan, never considering the negative consequences when they are late on payments.

FICO score

 

   Today I had a prospective buyer who inquired about getting a loan although he had never borrowed any money or had any credit issued to him in his name. In our conversation, as I am inquiring about anything and everything that might be a positive, he indicated to me that although he had never used it, he was put on as a authorized user on one of his mother's credit cards. A authorized user is just that, someone that has permission to use the card, but they are not liable for the debt. With that I pulled his credit report and behold. His mother had a $8000 high limit and only carried a monthly balance of around $400 and because she had been very timely with all her payments over the 38 months that he had been an authorized user, he was able to piggy back on her credit and get the positive benefits from this. His three credit scores were 730, 748 & 758. Amazing, but he  qualifies for a FHA loan. He is in the process right now of negotiating the contract price for his new home.

Moral of the story is, don't be so quick to assume that you wouldn't qualify for a home loan.

Call me today to discuss how I might help you.

Greg Miller

Loan Originator

Ruoff Mortgage

gregm@ruoff.com

www.ruoff.com

 

574- 268-9033

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Greg Miller   
Mortgage Loan Originator 
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com
574-268-9033


 
Post is included in group: 1st Time Buyers
Post is included in group: Bartender, Make it a Double
Post is included in group: Christian Mortgage and Real Estate Professionals
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11 Comments on 748 FICO & Never borrowered a dime ?? Yeah ,you're good to go !!

FEB
15
2011
170,234 Points

Good blog.  Lets of people think they can not get into a home when they can.  Good luck and I hope it closes quick!

 

Adam
10:35pm • #1
165,042 Points 1 Featured Post Outside Blog Called Shot Master

Cautious use of credit is a good thing in today's market.
10:39pm • #2

Great story! I've had a client say they have excellent credit and it's crap and then i've also had it happen the other way around. Some clients just don't understand credit.
10:58pm • #3
FEB
16
2011
873,612 Points Outside Blog Called Shot Master

Greg - Your client is a very responsible person. Thanks for the information.
12:10am • #4
103,261 Points 2 Featured Posts Localism Sponsor

Adam - So True,they just need to try. Even if they can't , we can guide them how to correct.

Laura - I totally agree,many have so much negative credit to overcome by they time I see them.

Andres - I agree many seem to be oblivious to their bad credit. Get a few , but not many the other way.

John, Seems he is benefiting from being a wise saver.
7:22am • #5
1,518,070 Points 112 Featured Posts Localism Sponsor Outside Blog Called Shot Master

My husband and I guard our credit scores as if they are made of gold.  But we get great interest rates and never get denied for loans. 
12:31pm • #6
161,261 Points

Had a similar situation a few years back; the guy went from a 580 to a 740 credit score in 30 days and we were able to place him in a conforming product at an interest rate  a lot lower than the one we quoted him to begin with. Good stuff!
2:02pm • #7
FEB
22
2011

Great job and good diligence here, Greg. Obviously you're experienced in this field and know how it works. So, the buyer/borrower had that one open/active as the co-member on Mum's credit card. Being an FHA loan did they use non-traditional credit for the other two open/actives required in FHA lending or has that guideline changed? 

Awesome job.

- Jamie
4:44pm • #8
FEB
23
2011
103,261 Points 2 Featured Posts Localism Sponsor

Chris - Good for you on the great credit scores. Does makes things cheaper doesn't it?
7:16pm • #9
103,261 Points 2 Featured Posts Localism Sponsor

Thanks for commenting Jim. Sometimes there is just no rhym or reason. Just go with it.
7:18pm • #10
103,261 Points 2 Featured Posts Localism Sponsor

Jamie, I have investors for FHA that do not have tradeline requirements, only 3 scores. Thanks for commenting.
7:19pm • #11


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Greg Miller/ Warsaw Indiana Home Loans - Conventional, FHA,USDA

Warsaw, IN

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Ruoff Home Mortgage

Address: 310 Enterprise Dr., Warsaw, IN, 46580

Office Phone: (574) 268-9033

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