In this climate of an improving housing market, it can be a challenge to get a home loan. To add to the challenge, many prospective home buyers aren’t aware that they may need a credit score from 3 major credit bureaus to qualify for a home loan. At Marimark Mortgage, we work with our clients to help them position their finances to qualify for a mortgage that best fits their needs.
Fox Business reports this week that home buyers are typically required to have 3 credit scores. The problem is that some credit companies only report to 1 or 2 credit bureaus, which could create a problem when home buyers apply for a home loan.
If You Don’t Have 3 Credit Scores
If you don’t have 3 credit scores for any reason, it could be difficult to qualify for a home loan in certain circumstances. As Fox Business reports:
Your lender is going to want to understand why you don’t have three credit scores, but the fact remains if you don’t have three scores, that alone will not necessarily deny your ability to get a mortgage. Lenders have standard lending guidelines set forth by Fannie Mae and Freddie Mac, and individual company guidelines, which are their interpretation of those basic guidelines.
Be Ready to Make Your Case for a Home Loan
Your finances may be in such good order that you rarely borrow money, and you don’t have a credit score from 3 major credit bureaus.
That’s a great position to be in, but you’ll have to explain this to a lender while providing additional documentation. And, more emphasis could be placed on your income, liabilities, assets, and debt-to-income ratio.
Use a Mortgage Company to Help
A mortgage company like Marimark Mortgage helps manage the process of getting a home loan.
It starts with an initial consultation to review your finances and pre-qualify you for a home loan. And if issues like credit reporting needs to be addressed, a plan is mapped out to reach your goal of home ownership or refinancing.