Step Two – Credit

Credit is one of the first barriers to getting a mortgage for most borrowers, it is a requirement that if the borrower is not “credit ready” today it may take a little or a lot of time to become ready. The amount of time depends on how far “out of scope” the borrower’s credit is, for example is the issue due to a few minor late payments or has the borrower had a major event such as a bankruptcy. Step 2’s focus is to make sure the borrower meets or exceeds all the program requirements for credit.  Here are some of the items that will be reviewed in this step

  • Does the score meet the minimum requirement
  • Are there any major events (BK / Foreclosure / Short Sale)
  • Open tax liens, judgments, or collections that may require additional action
  • Fraud warnings and mismatched information
  • Credit inquiries in the last 120 days