Myrtle Beach Condos For Sale - The Hoffman Group Is A Myrtle Beach Real Estate Company Specializing In Oceanfront Condo Sales and Oceanfront Condo Foreclosures

Myrtle Beach Condos For Sale - South Carolina

Buying season is upon us and many are wondering if they could be in the market for a new condo or residential property. With the economic recovery gaining some traction, mortgage lenders are beginning to accept and approve loan applicants that only a few months ago were declined due to borderline credit risk.

On March 20, Ellie Mae, Inc., a private-sector supplier of internet technology systems to the mortgage industry, showed in their monthly report that average FICO scores of borrowers was down four points from the previous month. Meanwhile, the average down payment was lower, and debt-to-income ratios were higher, all of which are indications that mortgage loan underwriting standards have shown actual signs of easing. This is also validated by a recent story in The Los Angeles Times that reported a loosening of lending standards.

Slow … but progress

The New York Times on April 12, published a story under the headline Signs of Easier Money for Mortgages. The article stated that you still need a great credit score with a lower down payment, or good credit with a larger down payment to get the best lending programs.

Of course, there are VA and FHA loans available for those with spottier credit and that desire lower down payments. These loans do come with additional closing costs but for borrowers who are of the opinion that today’s low mortgage rates won’t last much longer, it is a viable option.

Getting the best home loan

To qualify for the best mortgage rates possible in the market there are some simple things you can do that will help you qualify.

Following are five of the steps FICO, the company behind America’s largest credit-scoring system, recommends:

1. Get a copy of your credit report, and have any errors (they’re more common than you may think) corrected.
2. If you’re behind with any accounts get — and stay — current.
3. Pay down your credit cards as much as you can. Ideally, your total balances should be 20 percent of your total credit limits — or less.
4. Don’t apply for any new forms of credit during the run up to your mortgage application. That includes auto loans, consumer accounts and credit cards.
5. Paying off a collection account won’t make it go away unless you get the creditor to agree to remove it. It’s best to pay off collections as soon as they appear — new activity on an old collection causes the derogatory information to be weighted more heavily and could drop your credit score.

If you’ve had difficulty in the past getting approved, there’s a good chance lending standards will continue to loosen, and it may only be a matter of time before you get the keys to that new Myrtle Beach condo or home - especially if you follow the five rules prescribed by FICO.

To further understand credit scoring and why your scores matter, get this free booklet fromFICO - you can download here.