Helping Home Buyers in Livermore Valley!

One of the most common questions I hear from Livermore Valley home buyers are, “What does it take to qualify for a mortgage these days?

Good question! Here’s an answer…

Each bank and loan program has its own set of criteria.  There is no one-size-fits-all when it comes to mortgages.  While the underwriting process is more exacting than it was a few years ago, good mortgages at great rates are available.  Banks are lending money for home purchases in Livermore Valley!

That said, it pays to have your finances in order.  Prepare yourself for financing your Livermore Valley Home by reviewing your credit report before the bank does.  You are entitled to one free credit report per year.  You can obtain it by visiting annualcreditreport.com.  As an option, you can also obtain a copy of your credit score.

Once you have a copy of your credit report, look for any negatives like late payments or collections and address any errors in reporting.  If you disagree with a reported item, you can file a dispute.  The FAQ’s on annualcreditreport.com can help you through the process.

If there’s a legitimate blemish on your credit history, don’t let it stop you from moving forward.  The nature of the negative item, along with the age of it, and any mitigating circumstances, are considerations that your lender will review during underwriting.  Just be prepared and have an explanation ready.

It’s also worth noting that some aspects of your credit history have more impact than others.   While the credit bureaus won’t tell us how they calculate a credit score, here are the basic categories:

  • Payment History: 35%
  • Amounts Owed: 30%
  • Length of History: 15%
  • Types of Credit: 10%
  • New Credit: 10%

As you can see, paying your bills on time, and using your credit wisely, are big parts of the picture.

Knowing your credit history is only one  factor in the mortgage process, but it will help you prepare financing for your Livermore Valley home purchase.

The best place to start your Livermore Valley home buying experience is right here.  Simply contact me for help with your home buying questions.  Let’s get past the initial requirements and find you the perfect home in Livermore Valley!

John Kurtzer
Your Livermore Real Estate Expert
RE/MAX Accord

Livermore Real Estate
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