Paso Robles Real Estate

How Important is Credit?

In this age of financial turmoil, bank failures/bailouts and foreclosures, having good to great credit has become even more important.  Mediocre credit scores may not prevent you from purchasing a home, but your other qualifying factors better be great.  And be prepared to have to accept a higher interest rate than that afforded to A+ borrowers.

Credit scores will affect which loan programs are available to you.   VA or FHA programs may be more forgiving of credit scores and allow for a smaller down payment than conventional programs.  The fact that the interest rate might be a little higher may be offset by tax benefits and hopefully increased value of the home after some period of time.

Credit is only one of the 5 major issues considered by underwriting when deciding whether to approve a loan or not.  The other 4 are:  down payment, qualifying ratios, job history and reserves.

If you have any questions about whether you are qualified to purchase a home, be sure to visit a loan officer to run your credit and discuss the other four qualifiers of down payment, qualifying ratios, job history and reserves.  Strength in these additional categories can enhance and shore up your credit score allowing you to qualify to purchase your first home or maybe the home of your dreams…

If you would like to search the MLS for listings in and around Paso Robles, visit my website. If you have any real estate questions or general questions about Paso Robles or San Luis Obispo North County, please contact me via email or call me at (805) 235-0234 for more information.

It starts with a dream…

Tags: bank bailouts, bank failures, credit, FHA, financial turmoil, foreclosures, paso robles, underwriting, VA