Buying a home requires having some cash on hand, steady income, and a good payment history for at least the past year. However, you don’t have to have a perfect credit score. Having a blemish or two on your credit report will not automatically disqualify you from a mortgage loan.
Know Your Number
If you are thinking about buying a house, you should be working to reduce your current debt and know where you stand financially. Examine your credit report and check your credit score. Look for errors and inaccuracies on the report that could be hurting your score. If you do have blemishes on your credit report, you will need to explain what happened, why it happened, and why it won’t happen again. If your credit issues all stem to a specific time and incident, you should not have a hard time proving to a mortgage underwriter that it was due to a situation out of your control, such as job loss, pay cut, illness, etc.
Find a Solution
We’ve all made mistakes in life, but financial mistakes can have a negative impact for long into the future. Work on ways to improve your credit score, such as staying well below your limit on credit cards and making it a priority to pay all bills on time. If you do have a low credit score, you may still be able to finance your dream property by bringing more cash to the table or demonstrating that you have a sizeable amount in your rainy-day savings.
Speak to Your Advisor
The best thing you could do is speak to a financial service representative regarding ways to finance your mortgage when you have less than perfect credit. The more individualized your service, the more helpful they can be to recommend the best path. Multiple factors influence the mortgage options available to you and having someone dedicated to helping find the best mortgage loan for you and your financial situation could save you money in the long run and potentially get you in your dream home sooner.
Applying for a mortgage loan is a big milestone, but an exciting one as well! While traditional mortgages are still a great choice for a lot of families, (Eastex offers up to 95% financing with approved credit), you do have other options available to you. For the best rates and mortgage plan, trust Eastex Credit Union. If you’re ready, click here to apply for a mortgage loan with Eastex today!