How to define what fair credit is? Is it decent enough or OK or simply good? It means that it should oscillate somewhere between 650 and 700. Fair credit will be considered as good enough if a lender see it this way so your judgement could be somewhat premature. With a variety of loans and abundance of offers, however, a borrower with fair credit is easily seen as desirable especially in those trying times. Then again, any missed payment could mean a drop in your credit score at the least expected moment. The ability to reach the heights and the category of top borrowers does not have to be removed from reality but requires plenty of self discipline.
Meet the Criteria
Mortgage loans for fair credit come with a similar set of criteria as in other cases. Fair enough, you could land a great offer with a down payment that could go well below that relentless mark of 20%. It is probably possible with the score you will present but you will also need to support your application with some job information. The longer you stayed in your current job the better it will look to the loan officer and underwriter. In other words, the more proof you can present that the job stability is intact the higher your chances of getting a shot at the best rates available. Surely not as great as those reserved for the most wanted borrowers but at least at acceptable rates.
Check Your Credit Report
Fair credit issues aside what is the next step in getting closer to your aim? You could apply for preapproval to see if that would be enough of leverage in your talks with a real estate agent, which it would probably be. At the very least you will have to shop around inquiring about the lender’s offers for fair credit to see how much you can qualify for and also take it into account when deciding on the house. It is obviously a two way street. Ironically enough, if you have not paid much attention previously to your financial moves, now it is time when everything matters and any missteps have to be carefully analyzed to not to repeat them in the future.
One idea, many people fail to consider, is to order a copy of your credit report for a detailed analysis item by item to check for any inaccuracies that might have sent the score down. Even a few points might make a difference during the process of homebuying.
Choosing a Mortgage Loan
When it comes to monthly payments you face yet another choice. The simplest piece of advice would be simply to opt for the safest bets that is FMR loans with a rate that remains stable throughout the life of the loan.