Have you already been pre-approved for an FHA or a VA loan but you haven’t found the right Spring Texas home yet? The bad news is that as of November 1st, 2010, you may no longer be pre-approved.
Why?? Because many investors are increasing the minimum credit score requirements on FHA and VA loans from 620 to 640. It was just earlier this year that minimum credit score requirements increased from 600 to 620.
Can the lenders / investors cancel your loan pre-approval? They certainly can and will. A loan pre-approval is just that pre-approval. It is NOT full loan approval.
Before you go spending money on option fees and home inspections, you better give your lender a call and ask them if you meet the new minimum credit score requirements. The last thing you want to do is spend money on a Spring Texas house that you will not be able to secure financing on.
The increase in minimum credit scores for FHA and VA loans is bad news for potential home buyers but is good news if you are a landlord. As some tenants who had ideas of becoming home buyers will have to put those ideas for a while longer until they improve their credit.
The days of the minimum requirement for loan approval was that you could fog up a mirror are long gone. As good credit has become important once again.
Jill Wente is a phenomenal realtor!!! She recently sold our home that had been a difficult listing. Not only... read moreJill Wente is a phenomenal realtor!!! She recently sold our home that had been a difficult listing. Not only would I not sell a home with any other realtor, I would not buy a home with anyone else. Why? Jill is a Five Star realtor. One has to perform at the top of their profession on a consistent and lengthy basis to receive such a designation. Jill has done so and received this award year after year after year. At our meet and greet get together she offered two transformative suggestions for our home. She continued to propose ideas that led to the sale of our home. Her work ethic was exceptional. She held open houses very frequently. She even picked up leaves when I was busy on another task for a showing. Jill is a wonderful person that really cares about selling your house. Her advice with negotiations and closing was all we could ask for and resulted in us getting our asking price. Trust her. We did and could not be happier. read less