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

By
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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Topic:
Real Estate General Information
Location:
Pennsylvania Schuylkill County
Tags:
schuylkill real estate

Comments 6 New Comment

Rainmaker
270,853
Rebekah Radice
Social Media Marketing, Coaching & Training
Manager of Industry Engagement, Better Homes & Gardens RE

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!

October 09, 2011 09:42 AM
Ambassador
776,034
John McCormack
AlbuquerqueHomes.com
Albuquerque Homes Realty * www.AlbuquerqueHomes.com

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

October 09, 2011 09:52 AM
Rainmaker
675,823
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605

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

October 09, 2011 01:43 PM
Rainmaker
598,544
Donne Knudsen
CalState Realty Services
Los Angeles & Ventura Counties in CA

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.

October 13, 2011 01:50 PM
Rainer
332,837
Paul Gapski
619-504-8999,#1 Resource SD Relo
Berkshire Hathaway / Prudential Ca Realty

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

March 29, 2012 08:40 AM
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Erica Ramus

MRE, Schuylkill County PA Real Estate
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