Mortgage professionals understand that having a client with a good credit history can improve your chances of qualifying for a mortgage loan because it shows the lender that you’re more likely to payback and on-time.
Nevertheless, understanding the meaning of a credit score, how it’s calculated, how it can influence the eligibility of mortgage loan – and the interest rates to be paid is not as easy as it sounds. Below, we break down all of these topics.
Is There an Exact Credit Score Needed to Purchase a House?
Unfortunately, there’s no exact answer for clients who are wondering what the actual credit scores they need to get preapproved. Of course, there are several factors that go into qualifying for a mortgage besides having a high credit score.
Due to this little fact, there’s no particular credit score number required to qualify.
Some guidelines, however, are listed below:
Conventional Mortgage: 620
FHA Mortgage: 580
Veteran Affairs (VA) Mortgage: Certain Mortgage lenders requires a 620-credit score on all VA loans, although, there are no minimum requirements for VA loans, generally.
Higher credit scores generally qualify you for lower rates on your mortgage loans i.e. saving you money.
Better Credit Scores Lead to Greater Odds of Getting Approved
It’s important for you, as a mortgage professional, to make sure certain your clients know their credit scores and understand what impact it has on them before they begin the mortgage process.
Once you get them to understand this, you can help them start positively impacting their credit score or maintaining it, so they can have the best chance at getting preapproved for a mortgage loan and getting you PAID.
In this day and age, it is clearly possible to qualify for a mortgage loan with a relatively lower credit score. Nevertheless, there’s a catch. You MUST have a high income and cash flow with low levels of debt.
It’s also possible to be turned down for a mortgage if your score is relatively higher when reverse is the case i.e. Low income and cash flow with high levels of debt.
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Mortgage Professionals should ALWAYS use credit scores as guidelines, to measure debt levels, client’s income and down payments since it will, typically, be taken into consideration when determining your mortgage eligibility.
Credit scores directly impact mortgage interest rates. Just 100-points could cost, or save, your thousands. Since you know that without a high credit score, your clients won’t qualify for the best mortgage rates available, WHAT ARE DOING ABOUT IT?!
You owe it to your clients to help them tackle this obstacle and that is, preparing them to get into that lovely home they so desire. Clients end up paying more money over the term of their mortgage loans if their credit scores are terrible. For instance, the difference between 4% and 4.25% is 0.25%. We know it seems small, but it can add up especially over a 30-year fixed-rate mortgage.
To lenders, a client with a high credit score shows that they’ve been good on meeting their obligations, whether it be credit cards, car loans or other home loans in the past. It means that the client’s more likely to want to pay back the loan on-time too.
If a client’s credit score drops from 780 to 760, then they’re more likely to see a small bump up in the rate they’ll be offered. This is called “Loan-level pricing” in the mortgage industry and every time this happens, there’s usually an increase in costs.
The lending industry carves up the credit score scale into 20-point increments and adjusts the rates it offers borrowers each time a credit score moves up or down 20 points. Even a 100-point can make a world of change with your client’s mortgage rates.
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Assuming we have a client with a 780-credit score looking to purchase a home worth $300,000. The client is typically required to give a 20% down payment as they apply for a 30-year, fixed-rate loan of $240,000. Based on their very good credit score, they will end up getting a mortgage rate of 3.875% rate i.e. $1,129/mo. (not including homeowners association, taxes or insurance fees).
These clients have come to you. You should be able to help them with all these i.e. credit restoration (if they have bad credit) and getting into their homes with great rates.
Why not do that?!
In this article, we’re going to hand you that key to use. It’s up to you to use it to assist your clients. We have a solution for you. We all know how expensive companies charge for “Credit Repair” these days. We’ve heard $1,500 or $2,200 or $3,500. We could all learn quite a bit from that.
Are you losing prospective clients due to bad credit score? You’ve got the Power to change that.
Do you want to be more than just a mortgage lender to your clients by adding services that will keep your clients coming back to you and referring you clients?
Are you tired of being called into the office to explain why you lost a sale?
Do you want to keep your clients in the pipeline and close big when they’re ready? Here it goes… You NEED a System!
What if we could provide you with this system that will enable you to help virtually all of your clients to establish an excellent credit score while securing their personal and financial affairs, along with purchasing the home of their dreams, all at the same time?
What will that be worth to your mortgage lending business?
What If you could get paid for helping those same clients of yours get an excellent credit to get preapproved for that family home they desperately desire? Would you want that?
To make your clients exceptionally happy with all of your services, you MUST have a system that could help them get into that home. A system like credit restoration for deletions of inaccurate items, credit builder for maintaining positive habits in adding impactful tradelines, credit monitoring for tracking the progression of their credit scores, a credit attorney available at their fingertips in case of difficult and emergent disputes, a debtzero to help them pay down some of their debts in a timely and effective manner in order to boost their credit limit ratio in a significant way.
This system could be worth $10,000 or perhaps $50,000 or more and you won’t be too far from the truth. Well, this system will be worth about $3 per day to your clients and not the $3,500 they would get charged elsewhere? We want to provide you with that system TODAY.
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https://www.diamondethical.com/start-your-credit-repair-business
What is a client worth to you?
On average, let’s assume a client is worth $3,000 to you. If you lose just 4 of those clients per month due to bad credit, you would have lost $144,000 in a year. You must engage this with precision using tools like we’ve highlighted to you to keep your clients coming back to you and sending you referrals from all corners.
Why not have that in your arsenal and earn money with it as well?!
There are NO overheads (i.e. other people you pay, office space, software etc.) and NO need for a “Credit Repair” mastery course either, in order to use the tool. All that has been done for you, so you can easily focus on the actual services that you’re best at which is servicing clients.
It doesn’t matter whether your clients have great credit or not, many parts of your business will be affected i.e. from closing a mortgage sale to getting referrals and creating a network of satisfied clients. You MUST understand credit (not credit repair), and how you can use this weapon to close more sales and help your clients get the home they deserve.
Be rest assured that we do the “Restoring” for your clients, not you. Nevertheless, you get a website portal that enables you to place them in the system for the Credit Restoration process. They can be in your pipeline for the period of completion of their home purchase. And you earn while their credit is being restored.
Add Credit Restoration to Your Mortgage Business Today >>>
https://www.diamondethical.com/start-your-credit-repair-business