Wednesday, December 16, 2009

Who cares about your credit score?

EVERYBODY…credit is everything…it is the DNA of your life, so take it seriously, particularly if you ever want to own a home.

Things have changed; it used to be that if you had 20% down and were breathing, you could get a loan…not so, no more. Lenders are tightening their belts at home buyer’s expense.

Previously you only needed a 580 credit score…now even with your 20% cold hard cash down payment, you will need a credit score of 620. In addition, if more than 45% of your monthly income goes toward debt, you will need to come up with more cash to put down, risk a mortgage denial, or be lucky enough to just pay a higher interest rate.

So, if you want to become a homeowner, do not go out and buy something that you do not need…no new furniture or no new car…or at least do not buy it on credit.

Banks are getting picky…very picky.