Credit

Credit has become more important in the last three (3) years as the mortgage industry has seen foreclosures flood the market at record breaking numbers.  As a result, the mortgage lenders have revised credit requirements within many loan programs.  They are now taking the precautionary steps to ensure you can afford your home, and your credit score plays an essential role in their decision.  Fannie Mae and Freddie Mac (overseers of the mortgage industry) have raised the credit score requirement to begin at 700, where it was previously at 600.  Additionally, the FHA (Federal Housing Administration) has also raised their credit score from 580 to 620.

What does all of this mean for you? Now more than ever, it’s imperative to be mindful of your credit score.  Knowledge is power.  Understanding your credit and knowing the information that is being reported to the credit bureaus is essential to maintaining a good credit score and improving your chances of receiving a loan for your first home. 

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