If you’re looking to move to Maricopa County in Arizona, or you already live here and want to own your home, you will need to apply for a mortgage. For many prospective homeowners, this process can be daunting, yet filled with excitement. However, if you want to secure a home loan in Arizona and have less than ideal credit, then you’ll be met with a series of challenges.

Get Your Credit Report before Applying for a Mortgage

The federal government ensured that everyone could have a copy of their credit report for free once a year, from all three credit reporting agencies. If you aren’t sure about what’s on your credit report, it’s time to find out. You can receive your free annual credit report if you go to www.annualcreditreport.com

Knowing your score is not enough. While most lenders require a minimum score of 620 (there are other factors that go into determining whether you qualify for a mortgage), that doesn’t mean you would be disqualified if your score is, for example, 600 or even 570.

Did you earn that score? Perhaps there is negative information on your credit report that should have been removed. A closed account (such as a credit card that was charged off) should be removed from your credit report after 7 years. Is there any inaccurate information? If so, you should address them and have it corrected before applying for a home loan in Arizona.

Plan on Placing a Larger Deposit

If you have a low credit score, plan on putting down a larger deposit and paying higher interest rates. If you can prove to a lender that you will be able to make the monthly payments on your mortgage, then you might be able to secure on with a low credit score.

Contact a Reputable AZ Mortgage Broker

It’s always a good idea to contact a local AZ (Arizona) mortgage broker because beginning the process of applying for a home loan in Arizona. A qualified broker will be able to discuss your unique situation and how your credit score will affect your ability to secure a mortgage and what you may pay for having a low score.

Maricopa County in Arizona is a great place to live. The sun shines almost all year round and the people are extremely outgoing and friendly. When you’re ready to live here and need a home loan in Arizona, don’t let a low credit score quash your dreams. Take charge and find out what you can do to buy the home of your dreams.

If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to team@azmortgagebrothers.com or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

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Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.

Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.

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