Mortgage Myth # 3 Perfect Credit is Needed to get a Mortgage
Credit is very important when applying for any loan especially when it comes to buying your dream home. One of the most common mortgage myths is that only borrower with perfect credit can get a mortgage, WRONG! IF a home buyer has a credit score of 450, getting a mortgage will be highly unlikely, but a home buyer with a 580-credit score might still be able to obtain a mortgage.
Credit scores will impact the interest rate and the loan program a borrower is offered and also whether a borrower is approved for a home mortgage, but a 760+ credit score in not necessary. There are many home loan programs that exist to help potential borrowers with 580 to 660 credit scores.
It is important that when getting a home mortgage, you only work with credit scores created by FICO as this is the only credit agency used by home loan providers Fannie Mae or Freddie Mac. Presently Credit Karma is not an accepted credit agency by home mortgage providers.
Potential Home Buyers who believe they do not have perfect should not completely give up on the idea of getting a mortgage. Your first step is to see what your credit scores are through FICO and you can do that by checking your credit score here.