Take steps to build credit score before applying for mortgage
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Q: I have no credit history and cannot figure out a way to establish any and therefore have a good credit/FICO score. I don’t have any debt, and I listen to Dave Ramsey and Suze Orman for financial advice. Dave doesn’t think your FICO score is important, but I think not having a good FICO would make buying a home very difficult. Do you agree, and if so, would getting a prepaid debit card like the one Suze Orman is offering be helpful?

It’s good that you listen to financial shows, but you may want to add Clark Howard to your list of financial planning gurus. It is very difficult to obtain a mortgage without a good credit score let alone without any.

According to Dave Ramsey’s website, you can get a mortgage if you have 20 percent for a down payment, choose a 15-year conventional loan, have a strong employment history with a good income, demonstrate 18 to 24 months of paying recurring expenses and can find a lender willing to use manual underwriting. That sounds great in theory, but not everyone can come up with a 20 percent down payment, afford payments on a 15-year loan and have a strong employment history when they want to buy their first home.

Ramsey offers a lot of good advice about getting and staying out of debt, but I disagree with him concerning…………… continues on News & Observer

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