Buyers: You DON'T Need Perfect Credit to Buy a Home!

Real Estate Broker/Owner with Erica Ramus - Ramus Realty Group - Pottsville, PA RM420589

Buyers: You DON'T Need Perfect Credit to Buy a Home!

One myth out there that I hear over and over is that a home buyer must have absolutely perfect credit to buy a home today. That is not true, although there is a grain of truth in there. You need GOOD credit but not PERFECT credit.

A home buyer without PERFECT credit may still qualify for a mortgage, although perhaps at a slightly higher interest rate, or the lender may require more money down.

Credit scores range from 500 to 850, but most of us fall between 600 and 700.

It is very possible to get a loan with these scores, if you shop around talking to multiple lenders. First, start with the bank that holds your current mortgage or where you do your banking in town. Sit down with the lender and explain your situation and ask him if you would qualify for a loan with that bank -- the bank that holds your accounts and knows you. They may give you a good rate to keep your business with them.

I also have been successful getting buyers loans online, specifically with Quicken Loans. Call them and see what a loan rep there says.

If you have blemishes on your credit report -- late payments, collection accounts, etc -- the bank may ask yout clear these up or explain them. It is best to know what these are before you walk into the bank, so go online and pull up your credit report from one of the three credit bureaus and know what is on your report. If you find errors, fix them before applying for your loan.

None of us is perfect. And when buying a home you don't have to have perfect credit. 

We work with many Schuylkill County lenders to help our buyers get into houses. If you want lender recommendations in our area, or want help from one of our Schuylkill County buyer's agents, please call our office. We'd be glad to help!


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Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Erica,

You are absolutely is a myth out there that a buyer must have perfect credit..good message to broadcast!

Oct 09, 2011 02:30 AM #1
Rebekah Radice
Imagine WOW! Digital Marketing Agency - Burbank, CA
Social Media Marketing, Coaching & Training

Hi Erica - VA and FHA fortunately still allow for less than perfect credit so those that aren't perfect (and no one is that I talk to these days in regards to credit) can still buy a home.  It's a great fact to get out to all of your buyers and sellers.  Hopefully together we can all debunk that myth!

Oct 09, 2011 02:42 AM #2
John McCormack
Albuquerque Homes Realty * - Albuquerque, NM, Albuquerque Homes Realty

Hi Erica -

Thank you... Thank you!  Buyers need to know GOOD credit can work for them.  The media has pushed PERFECT CREDIT so long most buyers have no clue they are actually good candidates to buy a home!  Suggest

Best regards from The Q

Oct 09, 2011 02:52 AM #3
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

This is so true Erica, so many have bad credit, but those with good credit can get loans....

Oct 09, 2011 06:43 AM #4
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Erica - THANK YOU!!!  THANK YOU!!!  THANK YOU!!!  It's true that so many consumer hear so much crap about what is needed to get approved for a loan.  So many of the people I talk to are actually scared to talk to a lender because of what they have heard.  I too just blogged about how a borrower does not need to have a perfect credit history.  There are programs out there for those with less than perfect history and even a couple of blemishes.

Oct 13, 2011 06:50 AM #5
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

actually even slightly below avearage will get it done in some cases. good post.

Mar 29, 2012 01:40 AM #6
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Erica Ramus

MRE, Schuylkill County PA Real Estate
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