How important is it to have a good credit for a home-loan?

My credit score is less than 620. Right now I am renting for 1500 a month and am looking to buy a house. I have around 5k income per month. Will I stand a chance to get a house loan?

How important is it to have a good credit for a home-loan?
its very important and a score of 620 is not what i call good, get it above 680 and u can say its above average 700 and up is good, it depends on what caused the 620 score, your debt ratio, and what u have to put down, and length of employment, yes there are lenders out there who will work with you but probably not a local bank unless you can go fha, especially in todays world of tight credit, and the banks i am sure are checking everything before making a mortgage, the days of easy credit ended about 6 months ago and it sounds like the boat sailed without u. sorry, work on getting the score up pay everything on time for 12-18 months, square away any derogatory accounts, and get you account balances down under 30% of the credit line before trying to buy and your score should go up substanially, gl
Reply:You are going to need to contact a loan officer in your area to see what your chances are. WIth that amount of income why is your credit low? Do you have late payments? Maybe you should work on your credit so that you can get a good rate because right now things wont be the best that you can do. You have the income to fix your credit if needed. Good luck.
Reply:Right now the score they are looking for for a good loan is around 720. Your score is still good but with all the foreclosures going on and all the defaults the score has gone up. With your income you are good depending on the amount of your recurring debt. It also depends on how long you have been in your current line of employment. It is free besides usually and tri merge credit report to have a loan officer review your chances. Good luck.
Reply:To most as you have read think and believe through know fought of their own you most have a great credit score. Well that's partially true in conforming and or traditional loans. There are loans or programs if you know where to access them that can and will give you a home loan today....the criteria being based on other components of you existence and other financial parameters and the rates aren't in the stratosphere either. Just find someone competent about total home financing and you will and can buy a home with that current score.
Reply:You can get financed for a home.. but with your score you would probably need a substantial down payment-- possibly 30% of the sales price!! Ouch i know... Money talks though! I guess it really depends on your living standards... $75,000 home or $250,000 home! But you can get it done with the right anount of money. You should get prequalified. It will tell you what price range to look in! Good luck to you.
Reply:Your scores aren't an obstacle if you consider using a FHA loan.





You could finance up to 97.75% of the purchase and still get rates below 6% based upon last week rates.





Regards,





Scott Miller