12 months to a 720 Credit Score

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Dear Lori ,

If you are just joining our newsletter Welcome!

This monthly newsletter will give you a little taste for What it really takes to get Qualified for a Mortgage.

Diane Miller will be our guest speaker this month for the FREE Classes we offer our tenants.  She will be giving a thorough presentation on what it takes to get a mortgage at this month's meeting .

This month's newsletter will give you a little taste of what getting a mortgage involves.

But first, Let's review a few things from previous newsletters that needs to be repeated....the basics about your FICO score:

Remember that  are 5 factors that are the most important when evaluating credit scores. As we have discussed in the past a credit score is a formula of factors that are ever evolving and changing. They depend on things you have purchased, paid for, pending or in default. At any one time from the 3 credit bureaus your score will vary.

So...about those 5 factors in a FICO score. They are:

1.     Your Payment History

2.      The Amount of Money that you Owe

3.     The Length of Time you have had Credit

4.     The Type of Credit that you have

5.     How Many Credit Inquiries

When you meet with the finance/mortgage specialist they will have you fill out a ton of information, get you to bring in copies or W2's, identification, maybe even taxes....it is all for the purpose of fulfilling what their lender requires in order for you to get qualified for a home loan.

It is not a difficult process, just takes some time. But, once it is done...then all your info is on file and you work on improving your credit or build up savings, develop a solid on time payment history and it will all fall into place.

You will not be in the dark as to what mysterious things are the Lenders looking for??

You will be well acquainted with the criteria after you read this newsletter and come to the class this month.

How S-A-Py are you?

S=Stability           A= Ability       P=Probability

So what does that mean??

Well, these are the general benchmarks that give a general idea whether you would be able to handle a mortgage.  Each benchmark is made up of general questions to determine someones likeliness to succeed.

S  Stability

How long have you been at the same address? Getting into a rent to own now and working on the 1 to 2 year plan is a great way to show Lenders that you are stable and make your payments on time.  How long have you been on the same job? They want you to have 2 years or more in the same career. Better still; the Lenders like to see 2 years at the same job. How much money do you have in savings? Ideally, an Underwriter wants to see at least 6 months of mortgage payments in savings.

A Ability

How much do you make and how much of that is used to pay bills? Your income is important, but maybe not in the way you think it is. Lenders want to so you have a reasonable Debt to Income Ratio, they like a maximum of 45%. For example: If you make $3,000.00 per month, you should not have more that 3000 x .45 = $1,350.00 in bills THAT SHOW ON YOUR CREDIT REPORT per month.

P  Probability

Need more information on the following topics? Just Click on the topic of Your Choice:

Rent to Own Options

Budget Introduction

Why You Need Good Credit

Still Looking for a Home?

Available Homes at EZQualDreamHomes.com

Got a Friend that would benefit from this information or that is looking for a home? Link below.