Shazaam! Kaboom! OK, enough pseudo-expletives. It's time to revisit the Ten Commandments of Lending as I see them from the top of Mount Mortgage. Wow, it's apparent I've had too much coffee this morning. Let thee read on!
II - HONOR THY FICO AND KEEP IT 620
THE SIN: I've pulled hundreds of credit reports and it seems like it's a case of the haves and the have nots these days. Either folks are near 800 with flawless credit, or they are closer to 550 with a report that's riddled with judgments, collections, and late payments. If you don't know what your score is, call a mortgage broker and we'll be glad to run a FREE REPORT. Or you can hit www.annualcreditreport.com once a year to get your free credit report. There are a lot of simple things you can do to get your score up, but it comes down to getting rid of the bad stuff and adding good stuff. Most government loan products require at least a 620 these days, so don't be left behind with a sinful score.
THE WIN: Fix your credit! Mortgage brokers and realtors, can I get an AMEN? There are reputable services out there that can improve your FICO score hundreds of points in a couple of months. True story. I had a client with ONE judgement from our friends at Verizon. It was only $144, but his score was a 696 because of it. Not bad you say? If he had at least a 720 FICO score, his rate would improve by .5%! He called Verizon, settled the matter once and for all, had it removed from his report, and 21 days later, his score was a 790! Amazing! It can make the difference between a RATE and a GREAT. A deal or no deal.
So honor thy FICO and you'll be walking on holy ground!