Know your credit score (FICA):
When applying for a loan, your credit rating is very important and will determine the approval or denial of your loan application. In most cases the credit rating is broken down into three categories:
1- Excellent You must have an established and clean credit history(i.e. no late payments on any accounts, no tax liens, no previous bankruptcy or foreclosure) you may qualify for the best rates. Examples of disqualifying factors may include balances that are too high (e.g., credit cards are all at the limit), credit history too short (<2yrs), or too many accounts with balances. Credit Score greater or equal to 700 (>=700).
2- Good If your overall credit history is good, but you have one or two minor issues (e.g. one 30 day late payment on a credit card or too many credit cards near the limit) you may qualify for these rates. Credit scores greater than or equal to 660, but less than or equal to 699 (>=660 to <=699).
3- Average If you have had a few credit issues in the past, however, your credit score is greater than or equal to 620, but less than or equal to 659 (>=620 to <=659).
WHEN YOU APPLY FOR A LOAN, A CREDIT REPORT WILL BE ISSUED TO REVIEW YOU CREDIT WORTHINESS.
As you mortgage lender, I will walk you through the process. I will also, assist you in fixing your credit if need be. I have helped hundreds in the past qualify for loans that without my direct intervention with the lenders would not have qualified.