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Reasons Why You Might Not Be Pre Approved For A Mortgage
Bad Credit Score
One of the things a loan officer will look at when starting your pre-approval process is your credit score. You can get an FHA loan with a 580 credit score, but that's generally the lowest most lenders are comfortable going when lending money. Lenders want to make sure that you will pay back the loan. When you have a lower credit score, it means that you may have missed payments, had a bankruptcy, too many credit cards open, or haven't had them open long enough.
How to Fix it
Changing your credit score is a process, but the first thing you should do is to check your credit report. Not only will this show you what is causing your low credit, but if there's something incorrect on the report, you will be able to work on fixing it. It will also give you some suggestions of what you may want to do to get your credit score up. This will most likely mean reducing some of the debt that you owe and ensuring you pay it back on time.
Incorrect Credit Report
Everyone has the ability to get one free credit report from the government every year. If you're going to be buying a home, it's a great idea to use your one free credit report to check up on any incorrect information and get it fixed before trying to apply for a loan. However, if you don't look at your credit report, if you are not pre-approved, you should look at your credit report to see if there are any problems. If you simply have a low credit score because of the reasons above, you will have to take the steps necessary to fix them. However, if there's something on your credit report that isn't accurate, you can dispute them.
Since everyone's time is precious nowadays I would appreciate if you take what we do as Realtors very seriously, because we understand and believe in the fact that buying or selling a house can be the....
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Bad Credit Score One of the things a loan officer will look at when starting your pre-approval process is your credit score. You can get an FHA loan with a 580 credit score, but that's