When you’re applying for a home loan, one of the most important factors lenders will look at is your credit score. Having a good credit score means you’ll have an easier time getting a mortgage and that you’ll qualify for more favorable rates. But, even if your credit score isn’t perfect, there are still plenty of options out there to help you get a home loan. If you need to improve your credit score to buy a home, participating in a credit education program might be the right fit for you.
Now more than ever, lenders are offering helpful programs and flexible types of home loans to help buyers qualify for financing options and buy their dream home. Many lenders offer types of home loans that have flexible credit and down payment requirements. But, for buyers with a limited or negative credit history, these loans can still be hard to qualify for and often have higher interest rates. Many buyers are choosing credit education programs to help them raise their credit score to qualify for a home loan. Credit education is the first step to your financial freedom.
What is Credit Education?
Credit education can help you take control of your future by helping you to raise your credit score. Having a negative credit history not only affects the possibility of obtaining a mortgage approval, but also has a direct effect on your quality of life, from something as important as employment, to something as simple as having your phone connected.
Credit education is a step-by-step program that will help you raise your credit score to buy a house. K. Hovnanian® American Mortgage offers credit education to help buyers improve their credit to buy a home. If you can’t qualify for a loan from K. Hovnanian American Mortgage, credit education will help you increase your credit score and bring you close to getting a loan approval. You’ll be making memories in your new home before you know it.
The information in your credit report affects whether you can get a loan – and how much you will have to pay to borrow money. With credit education, you’ll be able to qualify for a home loan with interest rates that you’ll be able to comfortably afford. When you participate in a credit education program like ours, you will:
- Raise your credit score
- Improve your debt to income ratio
- Increase your likeliness of qualifying for a mortgage
- Lower your loan’s interest rates
Four Easy Steps to Improve Your Credit Score
With K. Hovnanian® American Mortgage’s Credit Education program, you’ll be on the road to financial recovery in four easy steps.
1. Complete an Online Loan Application
After you complete an online loan application, a pre-qualification interview will be completed by your account manager. At that time, it will be determined if a loan program is available based on your credit history.
2. Map out the Steps
If a pre-qualification cannot be issued and you are a candidate for Credit Education, you will begin the program. K. Hovnanian® American Mortgage will establish a blueprint, outlining the necessary steps you need to follow to increase your credit score and improve the overall health of your credit reports.
3. Keep Track of Your Progress
There will be periodic check-ins by the account manager to discuss your progress. We will not begin construction of your new home (if a contract has been written) until there is evidence that you credit is improving based on your participation in the program.
4. Close on Your New Home
Once the desired outcome is achieved and a loan approval is granted, you are ready to close on your new home! It’s more than buying a home, it’s about staying in the home. So that’s why with K. Hovnanian ® American Mortgage’s Credit Education Program, we don’t say “no” we just say, “not yet.”
To learn more, visit www.khovmortgage.com or contact us at (800) 232-0351.