Credit Approval Process

Credit Approval Process

Hello everyone Brian Stites with Remax
Results and Twin Cities real Estate Guide. Today we have a series on the four
ingredients to a loan approval and we’re talking about Credit Score today. So Jeff, how important is credit
when getting a mortgage? It’s extremely important! Hi, my name is Jeff
Pappenphus, I’m a licensed mortgage loan originator with Mortgages Unlimited my
nmls ID number is 230856 and i’m here today to talk with
you about the difference between an FHA and Conventional mortgage loan and
really what that leads into is a discussion about what determines what
type of a loan someone would get qualified for. There’s four key
components that are going to help determine the level of risk associated
with you and determine what that likelihood is. Those four key components
or the ingredients of a mortgage loan approval are your credit score your debt
to income ratios the loan to value and your cash reserves. Now first and
foremost, the most important thing in determining the level of risk is your
credit score. Your credit report is a record of what you’ve done in the past
and it’s also therefore the best predictor of future behavior. So if
someone wants to know how you’re going to pay your bills in the future they
generally look at your track record, well let’s see what they’ve done in the past.
Now ideally they’d like to see a 740 plus credit score that would be
excellent. 722 – 740 would be good. 680 – 720 would be average. Below 680, 660 – 680
would be relatively good and then below that you start running into maybe some
issues with cautionary measures and so that’s why you might lean more towards a
an FHA mortgage if you have a credit score of 620 or below, So, what determines
which direction you’re going to go with your mortgage loan approval is really
determined by the ingredients of a mortgage loan approval and determining
what is the level of risk associated with lending money to someone that wants
to purchase a home. If you’d like some more information
about how to improve your credit score or the components of a credit score go
ahead and message me below or my number is in the description box below feel
free to give me a phone call or text, Thanks. So one way that you can
compensate for a lower credit score is by putting more money down. Well thanks
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11 Replies to “Credit Approval Process”

  1. Good information – I like how you partnered with a local mortgage professional to bring this information.

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