It's a lot more difficult for homebuyers to get a loan today.  The National Association of REALTORS® reports that 18 percent of their members reported contract failures in recent months. Even homebuyers with good credit are finding it hard to secure a loan.

Getting a loan IS POSSIBLE, though, if you know what criteria is necessary and know what to expect with the newest mortgage lending restrictions.

"A REALTOR® can help educate buyers on how to improve their credit score, including things to do and avoid, such as paying all bills on time and not taking on new sources of debt before applying for a mortgage," says the National Association of REALTORS®.

Plan ahead before you buy to find a reputable lender and get approval before you find the home of your dreams.

The average FICO credit score for homebuyers looking to obtain a new mortgage rose to 760 in 2010, up from 717 in 2007. A good credit score falls in the 700 range.

"Weighted average FICO scores for conventional loans purchased by Fannie Mae and Freddie Mac eased a bit in the second quarter of 2011, declining to 755, but remain well above historic norms." reports the NAR.  "Less than one percent of loans were offered to buyers with credit scores of 620 or below, and 70 percent of loans were provided to borrowers with credit scores of 740 or higher."

To check your credit report for free, go to FREE Credit Report.com.

Read more about How a REALTOR can help you overcome tight credit restrictions.

photo credit: ourmanwhere

Posted in Buyer Resources, Headlines

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