Metro Business asked Tim Estes, president of Professional Mortgage Corp. in Richmond, about how difficult it is to get a mortgage:
"Today, your credit report and credit score are more important than ever in helping you qualify for a mortgage with the best terms.
"The credit-score bar has been raised considerably. Credit scores under 600 are generally no longer acceptable. Many lenders have credit-score minimums of 620 or even 640.
"Lenders are also charging higher fees for borrowers without excellent credit, which today is defined as having a credit score of at least 740.
"If a business has requested your credit report in the last 120 days, you may be required to document whether or not new debt was obtained. Lenders may also run a new credit report just prior to your loan closing to look for any new debt.
"If any of your accounts in your credit report are listed in a disputed status, you may need to have the dispute removed from your report. Your credit score is viewed as potentially inaccurate because disputed items are not part of the score calculation.
"Your licensed mortgage broker or lender can assist you with these and other credit issues, but since the process takes from a few weeks to several months, you should meet with your mortgage professional well before you begin your search for a new home or shop for a mortgage refinance."
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