I often get asked questions regarding today’s mortgage accessibility and how credit scores comes into play. Perfect credit is not required to obtain a mortgage loan.

Yes, it is true that underwriting guidelines have tightened and your credit should be good to qualify for a mortgage, however, it is still a good idea to talk with an Albuquerque mortgage professional that can assess your situation and inform you of what you need to do in order to qualify. The solution to a poor credit score may be as simple as reviewing your credit report and having any erroneous information corrected. A good Albuquerque mortgage professional can also refer you to an agency that can assist you in correcting your credit report and teaching you the ins and outs of how credit scoring works. Education about how to properly utilize your available credit may be all that you need to improve your score.

Interest rates for mortgages are still historically low in Albuquerque. Conventional 30 year fixed rate loans are hovering around 5% and FHA/VA loans remain around 5.5%. Mortgage rates do vary depending on your credit score, down payment, and loan amount. The better your credit the better mortgage rate you will qualify for! If you are a first time home buyer in Albuquerque, you can also take advantage of an $8000.00 tax credit when you file your 2009 taxes.

The New Mexico Mortgage Finance authority is an agency that has programs to help first time home buyers with down payment assistance and “HERO” loans. The HERO program is designed to serve households in which at least one member is a safety worker, health care worker, educator, or an active member of the armed forces. You do not have to be a first time home buyer to qualify for a HERO loan. To find information about the New Mexico Mortgage Finance Authority programs and to access a good mortgage payment calculator.

Please e-mail additional questions regarding mortgage issues to Allyson at: Allyson@nmmortgageadvisors.com.