In spite of all the negative media hype, there are plenty of good lenders that are ready, very willing and able to approve mortgages for qualified first time or move up buyers.  If you focus on the news, you would think that it is near impossible to get a mortgage.  This is just not so.

What has really changed is that lenders today are requiring some money down, a verifiable income, a credit score close to our national average and a reasonable ratio between your income and the amount you want to mortgage.  Imagine  that……..You’ve got to have some savings, you have to have a job and you have to be able to make the payments.

According to FAIR ISSAC, the credit score creators, the median Credit Score is 723. 

Here is what I am finding: For conventional financing, a down payment of 5% will get the job done.  A credit score of 720 or above will get you the best interest rate available.  A credit score of 700-720 will cost a only about a 1/8% bump on the interest rate.  To put this in perspective, on a mortgage of $315,000, the monthly payment difference is only $35 per month.  And still, at a 680 credit score, a mortgage with 5% down and appropriate ratios is certainly doable with a rate of 1/4% higher than the best.  NOT A BIG DEAL!

If your credit score is below 680, you are still not out of luck.  There is mortgage money out there for you with more money down or FHA has become much more flexible on credit scores willing to approve buyers with credit scores starting around 600.  FHA rates are very competitive and the down payments required as little as 3%. 

Don’t  believe everything you see, read or hear.  Bad stuff makes good selling news.

If you need help or have any questions, feel free to contact me at Dean@PrimeAnytime.com or 708-354-7355.

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