Over the years another common Real Estate question we’ve had from our clients is “how important is my FICO score when buying a home?” and the answer to this question is your FICO score is actually very important because, a FICO score means you may be able to qualify for a better mortgage interest rate, while the lower the FICO score you have means you may qualify for a mortgage loan with a much higher mortgage interest rate.
Can I Buy A Home With A Low FICO Score?
There’s no denying that after the recent recession many people saw their FICO scores take a hit after they lost jobs, declared bankruptcy or lost homes and as of today some people who once had perfect
FICO scores now have FICO scores that are 700 or lower.
The good news is that you can still buy a home in 2015 with the FICO score as low as 625 because, there are some mortgage loans out there including HUD and FHA loans which don’t require high FICO scores but the catch is that you may ultimately pay more for a mortgage loan when you have a lower FICO score so it’s always a good strategy to take the time to work on boosting your FICO score before you actually apply for a mortgage loan.
How Do I Boost My FICO Score?
At Fred Sed Realty we don’t just specialize in helping buyers and sellers with their Real Estate transactions, we start working with many clients 2 to 3 years in advance of them buying homes by
referring them to our partners who can help them to repair credit and boost their FICO scores.
If you’re planning on buying a home within the near future, and you know that you have a low FICO score, you owe it to yourself to take the time to work on boosting your FICO score before you apply for a mortgage loan because this could save you tens of thousands of dollars during the time that you own a home.
To learn more about how you can boost your FICO score, or to view homes for sale in Southern California, contact Fred Sed Realty today by calling us at (800) 322-4643.