Ask George & Chuck

View Housing TrendsYouTube ChannelFollow Me@george5139View My Profile
(832) 485-1800

Answers to real estate questions as appearing in the Houston Chronicle
STEPHENS PROPERTIES
        EMAIL ME        1800 Augusta Drive Ste. 100, Houston, TX 77057     Phone: (713) 978-6673     Fax: (713) 978-6684
Credit scores, parking problems
MAR
16

Dear George: I'm single and have worked at the same job for the past six years. I don't earn much, and my credit score is in the low 500s. What are the chance that I can get approval for a mortgage as a first-time buyer? Should I get a co-signer?

Answer: Working for the same employer for six years shows consistency, which is in your favor. However, most lenders will balk at a credit score in the low 500s. Here's a rough outline of what FICO credit scores mean to lenders:

  • 700+: Excellent.
  • 680-699: Good.
  • 620-679: OK. You likely won't be denied a loan, but the terms may not be generous.
  • 580-619: Banks and lenders are probably able to get you a loan, but it will be very expensive for you.
  • 500-580: You're in trouble. You'll need some credit repair before you get a loan.
  • Below 500: You need to repair your credit now.

You should enroll in a credit-repair class with an organization that belongs to the Better Business Bureau. Try this before you enlist help from the co-signer. Raise your credit score before taking on more debt.


ARCHIVE
Zip code
Location


TOOLS
View subdivision price trends for the past 13 years, and create comparative subdivision analysis reports online.
View a list of my sold listings.
Search for information on Houston and Texas schools based on the county, district, campus and/or zip code.
Golf Course Finder allows you to search for Houston golf courses and to view properties on or near a golf course.
Search for Houston area highrises and see their comprehensive list of features and amenities.
Includes residential home sales statistics for residential properties and new homes listed by REALTORS®
Online resource center for affordable housing information
Information source for mortgage info, lenders, refinancing and more!
Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®
Copyright© 2014, HOUSTON REALTORS® INFORMATION SERVICE, INC. All Rights Reserved.