Several months ago, just about anyone breathing could get a loan to buy a home in the Fishers Real Estate market.  Fast forward to today and you might have to give up your first born to get that same loan.  It is definitely harder to get a loan than it was, but there are things you can do to help improve your chances.  If you have credit score issues, you can have your credit repaired in the next six months and still cash in on the $8,000 first time buyer credit.

Distressed Property DefinedFirst let’s identify what a FICO score is.  It is an abbreviation for Fair Issac Company.  It is a measure of borrowers credit risk commonly used by mortgage people when determining loan worthiness.  It is typically between 300 and 850.  It not only determines whether you get the loan, but often will also dictate the terms of the loan.

Last year a good credit score was between 680 and 720; fast forward to now and it really needs to be in the mid 700’s. 

The score is comprised using the length of your credit history, your payment history, the types of credit you use, the amount you owe and the amount of new credit you have obtained.  These things work together to determine your FICO score.

If your credit score is low; consider doing the following things:

  1. Check your credit at https://www.annualcreditreport.com/cra/index.jsp ; this will allow you to check your credit for free; if you want your score there is a nominal charge of around $9.00
  2. Fix any errors as quickly as you can by providing the needed documentation to the requesting party.
  3. Reduce what you owe, pay on time and do not apply for credit you do not need.

Also, be aware!  Credit card company’s are reducing limits of lots of people, even those with high scores.  It is in the fine print.  If you have a large balance, watch your bill.  If you had a limit of $20,000 and you have a balance of $15,000; they could drop you to $5,000 limit and start adding fees and penalties to your bill. 

Most of this information was provided by Jeff Wills, who works for STAR Financial Bank at 116th and Allisonville.  He is very knowledable about the lending industry and provided insight into the FICO score for me.

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 Cindy “in Indy” Marchant - Fishers Real Estate Agent
Keller Williams Realty Indy Metro NE
Fishers IN Real Estate Website
317-290-7775