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> WHAT IF I HAVE "BAD" CREDIT? Contrary to popular belief, good credit does not necessarily mean perfect credit. It is understood that bad things, such as layoffs, divorce and illness, happen to good people. How you used your credit in the past and the reasons for your past financial difficulties are two factors that figure into your ability to qualify for a loan. In most cases, a credit report that isn't perfect won't keep you from getting a reasonable home loan. The fist step is to determine if you are considered a credit risk. You may obtain a copy of your credit report by calling, writing or going online to any of the three credit reporting agencies:
There is an $8.00 - $9.00 cost in most states for your credit report. The cost is $8.00 in California and free if you live in Colorado, Georgia, Maryland, Massachusetts, New Jersey or Vermont. Credit reports are also available from independent companies authorized to issue them. Most lenders use a single credit report complied, or "merged," from all three agencies that can also be purchased. Your credit report shows a FICO score, the statistical method of assessing risk factors such as past delinquencies, derogatory payment behavior, current debt level, length of credit history, types of credit and number of inquiries, used by lenders to determine your credit worthiness. Generally speaking, credit scores above 700 rate as "Excellent" and scores from 650 and above "Fair" to "Good." Scores of less than 650 require review, however, there are many lenders and loan programs to accommodate lower scores as well as reputable companies that may be able to repair your credit to improve your FICO score. After talking with you, we will better understand your personal situation and be able to offer you a choice of options to qualify for a home loan.
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