Checking The Pulse Of The Kansas City Real Estate Market
If your credit score is over a 800, you’ll be in the drivers when getting Pre-Approved to purchase a home in Kansas City, Johnson County Kansas or the surrounding area. The mythical perfect credit score is 850 but in reality, even if you could obtain that score, there’s virtually no difference between that and an 800 credit score. More or less, if your credit score is over a 770 you’re considered an excellent credit risk and financing will likely be readily available to you.
Often times, a credit score of 750 is also considered excellent and may help you obtain the same good financing options that an 800’s credit score borrower gets. But dip below 750 and you’ll likely fall below what most lenders consider an “A” paper borrower. Still, there’s many lenders that consider a 720 or even a 700 credit score to be a solid credit risk. But dip any further, such as the 700’s to 720’s and lenders are likely to be scrutinized on your likelihood to repay the loan. If your score is in the 680’s or 690’s, you will face even more scrutiny, though you are likely to still be able to obtain a home loan.
If you’re in the 640’s to 680’s range, you may find lenders are unwilling to give you the most favorable terms and low fees. If you’re below 640, it’s possible you’ll get rejected for the loan. More or less, a mid 600’s presents lenders with a so-so credit risk, so you’re not going to get the most favorable terms. If your credit score is below 620, your ability to get a loan will certainly be in question with many lenders. Anything below a 600 could require you to check around for a lender willing to take on the credit risk. Once you find a lender willing and able to give you a loan, you should definitely expect a higher interest rate and/or higher fees to be charged.
If your credit score is in the 500’s, you are definitely credit score challenged and you should probably make plans to rent or move in with the in-laws. You’ll surely need to spend time improving your credit to raise the credit score and be able to purchase a home. Although I play one on TV, I’m not a mortgage lender, so be sure you contact a local mortgage lender to discuss your options in getting Pre-Approved to purchase an area home. It costs nothing to do so.
Posted by Jason Brown
