Hope Business Solutions Group Newsletter: March 2024

Andre McIntosh • April 5, 2024

How Your Credit Score Impacts Your Home Loan

Your credit score can impact the structure of your loan, and can change your whole home buying process. If you have a good credit score, your interest rate will be lower than other buyers - allowing you to afford more for your money! You also could be approved for a lower down payment if you have good or exceptional credit. And, of course, if you have a good credit history, you will have more options for lenders who are willing to fund you - which allows you to 'shop around' for the best mortgage deal.


How Does Your Credit Impact Home-Buying?


When it comes to getting a home loan, your credit score is the most important factor, second only to your income. But what exactly is the lender looking for? Although we can't guarantee all lenders follow these guidelines, here are some major factors they will be looking at when they review your credit report...


  1. Overall Score: For the most part, lenders expect you to have a "Fair" credit score (usually the minimum is around 600 FICO score). If it is lower than this, you probably will not get approved.
  2. Payment History: Late payments and delinquent accounts will reflect very poorly to a home lender. They want to know you have a history of paying your bills on time!
  3. Debt-To-Income Ratio: Lenders will look at what percentage of your income goes toward paying debt on a monthly basis. The debt-to-income ratio analyzes how much money you have vs how much money you spend. If you are carrying credit card debt month-to-month, this could hurt your approval odds! If you spend less that 35% of your income on bills each month, that is considered to be an 'healthy' debt-to-income ratio.
  4. Derogatory Accounts: These are items such as collections accounts, foreclosures, repossessions, bankruptcies, and other MAJOR negative items on your credit report. It will be very difficult to get approved for a mortgage if you have any of these items, especially if it was recently added, on your credit report.


Become a Homeowner! Get Up To $30K Toward Your First Home!


HOPE BSG is focused on helping our clients become homeowners. We have a new program with access to experienced professionals to help you get your finances in order and get approved for a mortgage. PLUS with our new program, first-time home buyers can get over $30K in grant funds toward their home loan. These funds are available for conventional, VA, AND FHA loans. For more information on this program, visit our website and contact us today! We look forward to helping you enjoy the upcoming season in the house you deserve.


Want to Know How to Take Your Personal Credit to the Next Level?

We hope this information was useful to you, but if you want to take the next step in improving your credit score and your financial health, we have some additional resources for you....


If you would like a more in-depth guide to improving your credit, we have an amazing new e-book, "The DIY Credit Restoration Guide", including, "The Shocking Truth of What LexisNexis Has on YOU!" You can use it to take your credit to the next level. VISIT OUR ONLINE STORE for more information.


Thinking About Starting A Business? Want to Know More About Business Credit?

We provide a comprehensive assessment and consultation to discuss your best path toward financial success for your business. Complete our Business Assessment today and get a jump start for your business! CLICK HERE to complete the assessment.


And we have a NEW E-Book to help guide you through the process of establishing business credit and obtaining funding for your business, "The Business Credit and Financing Guide" by HOPE BSG now available in our online store!


Whether you are a self-paced learner and want to take each step of the process at your own rate, or you just want to learn more about the world of business financing and how to take your business to the next level - this book is for you.


One more thing...

We deeply appreciate all of our clients and affiliates, it is our sincere pleasure to serve you and be able to interact with all of our prior class attendees, contacts, and clients. Please consider leaving us a review on Google if you have enjoyed our services or one of our classes.

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