725 W. Elliot Rd., Suite 101-7 Gilbert, AZ 85233
The better your score, the more likely you are to get a great interest rate. But even if you don’t have perfect credit, contact me.  Geneva Financial has home loan options for everyone and we can provide credit bureau approved methods to improve credit scores so you can get a better rate in the future.   You may qualify for a home loan even with a low credit score!
Here are the steps you need to take to get a home loan:
STEP 1: Call me to do a credit application
This will help us determine if you can get pre-approved NOW or if you will need to do some work to improve your credit score.


STEP 2: Look for errors on your credit report
Once you have your credit score, you need to go through it to see if there are any errors. If there are any items you do not recognize, I can help you navigate through the process to remove the errors.
STEP 3: Pay down your credit card balance
Pay down the balances on your credit cards. The ratio of the balance on your credit cards compared to the credit limit is called your credit utilization ratio. If you have a $1000 limit on a card with a $600 balance, your credit utilization ratio is 60%, which is considered very high. You want to pay down the balances on all of your cards as low as possible. The lower the balances, the higher your credit score will be.

GOAL: To be less than 30% on as many cards as possible.


Bad Credit Home Loan Tips

STEP 4: Look at your DEBT to INCOME Ratio
Your debt-to-income ratio (DTI) compares how much you owe each month to how much you earn. Specifically, it’s the percentage of your gross monthly income (before taxes) that goes towards payments for rent, mortgage, credit cards, or other debt.  GOAL: DTI = 43% but some loans allow higher.


Once our plan is in place for a month or two, give me a call so we can check credit score and see if you are ready to get pre-approved…Once you are pre-approved, we can help you find the perfect Realtor partner for you and start house hunting. We can recommend some great agents in your area, just ask.


Credit Score Rating:

720+ = Excellent credit
680-719 = Good credit
620-679 = Fair credit
580-619 = Poor credit
579 and lower = Bad credit


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