Forget the myths surrounding low credit scores. People with low credit scores can also apply for mortgage under some conditions. Generally, a credit score above 680 is considered good enough for approval. However, credit score between 620 and 680 also has good chances to get approved, even though it is considered low. Under 620, the approval chances are very low. Here are expert legal tips to qualify for mortgage even with low credit.
The first step to improve your credit profile is to identify the red flags which may cause lenders to reject the mortgage.
When seeking a conventional loan, a seven year old foreclosure date is required with no flexibility in down payment. These conditions are very strict and if your profile lapses in any of these, then your application has high chances of being rejected.
If you have a low credit score and you want to qualify for the loan, then discuss it with a legal advisor. Generally, we have three techniques to fix a low credit application.