With so many homes for sale and mortgage interest rates so low, never has there been such great opportunities for existing homeowners to move up or for first time homebuyers to buy.

There are many programs available. Conventional loans are available again at 95% financing w/PMI; FHA loans only require 3.5% down. VA is 100% financing. Of course you have to be a veteran. USDA offers 100% financing, but remember, borrower and property must qualify. Construction-Perm Loans are available and Polk County just waived the impact fee for the next few months which should result in huge savings for those that want to build.

Most lenders have a minimum credit score requirement of 630- 640 and the credit score is one of the things that will get you the best interest rate. On conventional loans, it is loan-to-value and score and if you have a score of 720 and 20% down you will likely get a pretty good interest rate!

There are a number of people that cannot qualify for a mortgage because of their credit scores. Many people do not realize that opening too many credit cards can show negatively on your credit report. Too much revolving debt. Some folks decide that they no longer want to stay in their cell phone contract so they decide not to pay. Oops, there’s an infraction on your credit report.

Before applying for a mortgage, pay down your revolving debt, but do not close the account. Unless of course you have way too many. Review your credit report to be sure that there is nothing reported on there that you may need to clean up, i.e., car insurance, cell phone company, old apartment that you lived in years ago and still owed some rent, but also to be sure that you do not have any fraudulent activity going on.

Just remember, the market to buy is wonderful right now for qualified borrowers. Take a close look at your credit report. If you are not sure of how to read it, take it to your banker. Let them help you. Or, bring it to me, Sharon Casey and I will be glad to help you!

At Community Southern Bank, Roxanne Noling is our Residential Lending Specialist