Credit Questions

What credit score do you need to buy a home in Michigan? The answer depends on the type of mortgage you’re using, your overall financial situation, and the specific loan program you qualify for. We can go down to a 500 credit score! However there are specific qualifications to make this happen, and a larger down payment is required. Not everybody will be approved.

Your credit score can affect more than whether you qualify. It may also impact your interest rate, mortgage insurance, down payment requirements, and the loan options available to you.

And if your credit isn’t perfect, don’t automatically assume you can’t buy a home. There may be options available, and sometimes having a plan to improve your credit can put you in a better position to become a homeowner.

I’m Shelby Weller, a Michigan mortgage loan officer helping first-time homebuyers and experienced buyers throughout Michigan understand their mortgage options and prepare for homeownership.

📞 Wondering if your current credit score is enough to buy a home? Reach out to me directly and I can do a soft credit pull, which doesnt hurt your credit score at all, and we can see if you qualify now OR create a customized plan to get you ready to buy.

General Minimum Credit Scores Needed: This is just a rough guide to follow and isnt a gaurantee as there are other qualifying factors than just your credit score. However, these are the minimums allowed.

0: Theres still loan options for no credit score, reach out for the specifics

1-499: Not available with me, however we can work on creating a customized credit plan to get your credit score higher to qualify

500-579: Conventional with 20% down OR FHA with 10% down

500+: VA loans

580+: FHA loans

580+: USDA Rural Development loans

620+: Conventional loans

640+: MSHDA down payment assistance loans

#CreditScore #FirstTimeHomeBuyer #MichiganRealEstate #MortgageTips

A mortgage credit check can create a hard inquiry and may have a small, temporary effect on your score. Shopping multiple mortgage lenders within a limited window generally groups those inquiries for scoring; the CFPB describes a 45-day window. We can start off with a soft credit pull which doesn’t hurt your score at all, and sometimes pre-approve you based off of that. Otherwise I can give you a pretty good idea of whether you would qualify based off just the soft credit pull before actually doing a hard credit pull. When doing a hard credit pull it could lower your score a little bit, but the amount depends on your full credit profile.

Pay every bill on time, review your reports for errors, and consider reducing revolving card balances and keeping your credit utilization low. Avoid opening or closing accounts solely to chase a score without checking the effect. If youre interested in more credit tips reach out to me and I can send them to you.

Maybe, but do not automatically use all your savings. Paying down selected balances may improve credit or DTI, while cash is needed for closing and emergencies. Reach out to me first to compare scenarios before moving money or paying anything off or down. Sometimes paying them down wont help very much, and sometimes paying them off in full could actually hurt your credit score. So talk to me first before paying more than the minimums.

I can do a soft credit pull which doesn’t hurt your credit score at all, and we can see if you can qualify now otherwise create a customized credit plan to get you ready to buy which could include paying off or down some debts.

Closing a card can change your available credit and credit utilization, and it may not remove a balance or monthly payment. Keep payments current while your loan is in process. Closing a card could actually hurt your credit score because it lowers the credit limit and your average age of credit.

We typically obtain a try-merge credit report from all 3 bureaus. Typically mortgage lenders pull Experian fico score 2, Equifax fico score 5, and TransUnion fico score 4. Then we use the middle of the 3 scores to qualify you. Your app's consumer score may differ because most use a newer fico score model 8/9 or a vantage credit score. These scores are different than the models used for mortgages. If you go to buy a house, buy a car, open a credit card, or open a new bank account, they will all show different credit scores. Doesn’t mean one is right or wrong.

Credit Karma and mortgage lenders may use different scoring models, bureau information, and report dates. Credit karma or your banking app shows scores that are different than the models used for mortgages. If you go to buy a house, buy a car, open a credit card, or open a new bank account, they will all show different credit scores. Doesn’t mean one is right or wrong. Most use a newer fico score model 8/9 or a vantage credit score, where as mortgage lenders typically pull Experian fico score 2, Equifax fico score 5, and TransUnion fico score 4.