My fiance and I are considering buying a bank/ lender owned home that totals no more than $70,000 asking price, I have a great credit score but not much on it, just a small loan and credit card. He has his credit full and not the best score in the world. Just curious if anyone knows how likely it is that we will be approved for a home?
4 Comments Already
May 31st, 2010 @3:01 pm
You also need to consider income, down payment and total credit-to-limit ratio.
May 31st, 2010 @3:18 pm
It should be easy for you to get approved, especially with a great credit score. It is very likely you will be able to do it with very little out of pocket expense. The location of the property and your income picture will determine that. The small lan and credit card will only serve to make you a more viable financing candidate.
The big deal is your good credit, any mortgage pro worth their salt, should be ble to help you structure this one. I would even ask the lender that has it now to see if they could work with you on financing it. If not, you should still have many options.
May 31st, 2010 @4:10 pm
Your application will probably be approved. However, the credit score is not the only thing they will look at. They will more likely dig into the whole credit history. For example, payment information, collection and/or delinquency problems, amount owing on accounts, proportion of credit lines used to total credit limits on revolving accounts, proportion of installment loan amounts still owed, length of credit history,etc.
In todays market if you have 20% down and closing costs and the income to debt ratio needed to purchase then you should have no problem. If you are high in debt, with low income and no money for down and closing, then would pretty much give up on it, not going to happen