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.
We entrusted Jill Wente with the sale of our current home and purchase of a new home. From the beginning... read moreWe entrusted Jill Wente with the sale of our current home and purchase of a new home. From the beginning she was extremely up front and honest about exactly what we would need to do to get our house sold. We had an incredibly tight timeline, that she explained would be difficult to make - but she helped us make it happen and our house sold in 2 days! She had recommendations for all our home repair needs and they were all professional and fairly priced. She worked hard to really sell our offer for our new home - she was able to pull off the tight timeline, securing a rent back from our old house so we had time to move out, and a contingency for our new home. Definitely exceeded our expectations. She was so helpful along the way - as first time home sellers we really relied on her and we feel lucky to have worked with her! You will not regret working with Jill! read less