The time is long gone when you could get a home mortgage with no down payment and bad credit. At one time you could get a house mortgage even if you could not provide any documented proof of sufficient income. Times have changed and for many, the lender's money has tightened in many aspects.
Many lenders are now asking for verified income, a good down payment and higher credit ratings. The minimum credit score for home mortgage Texas allows Leahy, is that you should have a score of 640 or better, and earn income to obtain financing for the home you want. Anyone having over 640 credit score may land a mortgage with low rate and zero down payment. Having a low score may still leave you some options in financing.
Your mortgage broker can review options with you. There are still programs for homebuyers with less than perfect credit. Many prospective homebuyers must spend some time improving their credit score before they can obtain a mortgage. A good first step to improving your financial rating would have to obtain your file from all three credit bureaus.
In the event that you are falling behind on any of your payments would mean that now is not the right time to apply for a home loan. This would also indicate that you need to work on your budget and raise your rating up to the minimum credit score for home mortgage Texas allows. Review your credit reports carefully and if you see any errors request corrections from the credit reporting company. Do not be afraid to challenge any information on your credit report that you feel is in error.
To help improve your credit, you can obtain a secure credit card by making a deposit with the card issuer. Consumer loans are usually easy to obtain and should also help you improve your score. Reduce your credit card balance to 30% or less of the card limit. You should wait two or three years after foreclosure or bankruptcy before applying for a loan.
Accounts in the hands of collection agencies and accounts that are "charged off" you should try to get deleted from your report if possible. Call the company to ask if they will delete the listing if you pay them in full. Ask them to put it in writing, if they agree, before you make a payment. If they will not delete the item, paying them will not improve your score much.
Ask your mortgage broker to help create a plan to improve your score up to the minimum credit score for home mortgage Texas allows and a credit score enough to qualify for a home loan. Sometimes it takes just a little effort to boost your credit score.