Do Not Let Your Credit Keep You From Homeownership

Whether you defaulted on a student loan or forgot to pay your credit card bill, you might be afraid that your low credit score will keep you from ever achieving your dream of owning a home. Do not fear, though; you are not necessarily excluded from the mortgage application process just because you have a credit score of less than 700.

Your credit score is only one factor that a lender will consider when deciding if you can qualify for a home loan. Ellie Mae, a mortgage software provider, reports that in 2014 33 percent of the mortgages that closed were for people with a credit score that was lower than 700. This is exciting news for people with poor to fair credit, as it is an increase from the 27 percent that were closed for people of the same credit score in 2013.

There are some steps you can take to make it easier to get approved with a low credit score. First, send your lender a letter explaining why your credit score is low. If you can show them that your low score was caused by loss of a job or death of a family member rather than just because you were being financially irresponsible, this will help your lender see that you are less of a risk. Also, verify that you have paid your rent on time for the past year.

If you are looking for a mortgage lender who can help you overcome your low credit score so you can get into your dream home this year, contact the Ranch & Coast Mortgage Group Inc. today. Our Solana Beach, California team is committed to helping you get the home loan you need. Do not let your credit score hold you back; call us today!