Lisa Caron - REALTOR® GRI, ABR,LMC,CDPE - Exit Real Estate Executives


If you’re hoping to buy a home in the near future, there are a number of financial factors you’ll need to consider.

One of the factors that all lenders will consider when determining whether or not to approve you for a mortgage is credit score.

In this article, we’ll lay out the minimum and ideal credit scores that are needed for getting approved for a home loan.

Determining Your Score

As you may guess, credit reporting is a complicated business. There are three main reporting companies that lenders use to determine your credit: Experian, TransUnion, and Equifax. These companies largely collect the same data about your finances, but can have minor variations. Lenders will take these scores and use the median or middle score to determine your credit rating.

Thanks to the Fair Credit Reporting Act, Americans have the ability to confirm the accuracy of their reports.

If you want to find your credit score, there are a number of online reporting agencies that will show you your report for free on an annual or monthly basis.

Minimum credit scores

Depending on the type of loan you’re applying for and which lender you are pursuing, minimum credit scores vary.

For those seeking first-time homeowner (FHA) loans, you’ll need a credit score of at least 580 to qualify for a 3.5% down payment. A score lower than this amount and you will need to put at least 10% down.

Since FHA loans are insured by the government, you are more likely to be approved if you have a low or “poor” or “bad” credit score (usually anywhere from 300 to 650).

Another type of loan that could help people with low credit is offered by the Department of Veteran’s Affairs. These loans, known as VA loans, are guaranteed, in part, by the government. However, the loans are still approved and distributed by lenders who all have varying minimum credit requirements. A good benchmark is that you’ll need a score of at least 620 to be approved.

Minimum isn’t ideal

While you may get approved for a loan with a low credit, this isn’t always a reason to celebrate.

Lenders use your credit score, among other things, to help determine the interest rate of your loan. A lower score often means a higher interest rate.

While 1 or 2 percent can seem like a small number, it can mean paying tens of thousands of dollars more in interest over the span of a thirty-year loan.

To illustrate the importance of one percent, consider the following. If you owe $200,000 on a home and intend to pay it over 30 years, you will pay $103,000 in interest at 3% and $143,000 at 4% - that’s a difference of $40,000.

Rather than shooting for the minimum credit score, a better approach would be to build credit while saving for a down payment. Someone with a credit score of 740 or higher will be seen by most mortgage lenders as an ideal person to lend to.

Of course, life doesn’t always allow for the ideal situation. So, do your best to save and build credit, and be sure to shop around for the best rates when you’re ready.



35 Fiskdale Rd, Brookfield, MA 01506

Single-Family

$278,000
Price

10
Rooms
4
Beds
2
Baths
Tastefully remodeled, renovated cape conveniently located on Rte 148. Desireble tantasqua school district. 4 bedrooms, 2 full baths on 1.5 acres. First floor master, open floor plan, front to back living room, first floor laundry, updates include newer hot water heater, septic and windows throughout, new forced hot water boiler, floors, walls. appliances. 2nd floor is another full bath and 3 more bedrooms. Nice size yard. Absolutely nothing to do but move in. Quick close possible
Open House
No scheduled Open Houses

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This Single-Family in Spencer, MA recently sold for $300,000. This Cape style home was sold by Lisa Caron - Exit Real Estate Executives.


1 Whittemore Cv, Spencer, MA 01562

Single-Family

$289,500
Price
$300,000
Sale Price

6
Rooms
3
Beds
2
Baths
Highest & best Offers by 3pm Sunday April 5th. Absolute Meticulous Cape on private lot - sit on your farmer's porch or out in the yard with views of Lake Whittemore. Open floor plan with kitchen/dining area, cabinet packed, lots of counter space and pellet stove in corner that helps warm the house nicely. First floor laundry, huge living room with hardwood floors and french doors. First floor bedroom can also be used as office, den or playroom. Second floor has 2 very large bedrooms both with hardwood floors. Double closet in the master. basement has a finished office area and workshop area. Central Vac, Security system, water filtration system. 2 lots make up the acreage of 1.31 acres. 2 car detached garage and plenty of parking in the expanded driveway.

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Getting your home ready for sale is a long process that will require some patience and hard work on your part. However, if you’re successful, you’ll be able to market your home to the best buyers and get top offers, making the whole thing worth it.

There are potentially an endless number of things you can do to prepare your home before listing it for sale. So, in this post, I’m going to talk about some of the most important steps you should make before selling your home to get the best results from your listing.

1. Make simple fixes

Before you start thinking about making bigger renovations, take a moment to make any small fixes around the home that you’ve been putting off. That door that gets stuck in the winter time, the blinds that creak when you open them… the little things add up and can give buyers a negative impression of your home. 

2. Get a professional home inspection

Serious buyers will get the home inspected before making a purchase. However, if there are any issues with your home, you’ll want to know for yourself long before selling time. Take the time to get a home inspection by a licensed professional so that you’re aware of any big renovations you’ll have to make in the near future.

3. Depersonalize (pack away those family photos)

Potential buyers want to be able to imagine themselves in your home. Having all of your personal belongings laying around can make that difficult. Neutralize your home by removing things that are unique to you and your family.

While this step can be tedious, you can also look at it as a good way to reduce the amount you’ll need to pack when it comes time to move.

4. Rearrange and declutter to open up the rooms

As homeowners, we accumulate a lot of stuff over the years. All of that stuff can easily make a home feel cluttered. Before you put your home on the market, it’s a good idea think about some ways to make your home ready for photos and visitors

5. Taking the best possible photos

How well-received your real estate listing will be will rely heavily on your photos. To get the best results, choose your photos wisely.

First, start by making sure your house is impeccably clean. Then, if you plan on doing any painting, get that done first.

Next, plan your photos for a nice day and take photos of the inside and outside of your home at different times of day. Since the Sun will cast shadows on different parts of your home throughout the day, it’s best to experiment with various lighting.

Finally, don’t be afraid to take a lot of photos. The more photos you have, the better the chances are of having a few really great ones that will portray your home in the most positive light.



35 Fiskdale Rd, Brookfield, MA 01506

Single-Family

$282,900
Price

10
Rooms
4
Beds
2
Baths
Tastefully remodeled, renovated cape conveniently located on Rte 148. Desireble tantasqua school district. 4 bedrooms, 2 full baths on 1.5 acres. First floor master, open floor plan, front to back living room, first floor laundry, updates include newer hot water heater, septic and windows throughout, new forced hot water boiler, floors, walls. appliances. 2nd floor is another full bath and 3 more bedrooms. Nice size yard. Absolutely nothing to do but move in. Quick close possible
Open House
No scheduled Open Houses






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