FFS Mortgage

Bad Credit

If you're here you must have some credit questions. Right? Okay then, let's get started. There are many things that affect your credit. These include: recent inquiries, high credit, amount of credit, number of credit references, and of course payment information. All of these items plus how long at present address and how long at present work place effect the most important part of your credit, "The Credit Score" (maybe called the FICO Score or a Beacon Score). The FICO or Beacon Score is looked at first. This score is derived from all the variables above and gives you an overall score which lenders and creditors base their decisions on. The score you hope to obtain is 620 or higher. If you have a 620 or lower score you are in the "Bad Credit" column and you will probably have take a higher interest rate or a lower LTV ("Loan to Value", based on percentage of loan amount against the value of the property) loan.

Frequently Asked Questions

What can I do before I apply for a loan to help my credit score?

There are many things you can do to help your credit score. These include:

Make your payments on time.
If you have collections or judgements, pay them off or at least make payment arrangements before applying for a loan.
Don't let eveyone and their brother pull your credit report. Each time you get an inquiry within a 90-day period this decreases your credit score. If you must shop, just ask for the rate do not let each lender pull your credit report. Or better yet, call First Financial Services first, we will shop over 40 lenders for you while only pulling one credit report thus minimizing the decrease in your score.
If you have a copy of your report and there are accounts on the report that are not yours call the reporting company and get these removed immediately.
Don't co-sign loans for others. This effects your credit score if payments are late and limits your purchasing power. If you have already co-signed for someone ask them to refinance their loan out of your name.
If you have NO Credit you should go out and apply for department store credit cards. Be careful here, you don't want to start charging little items before making the biggest purchase of your life.
Call First Financial Services and let our Loan Consultants help you figure out the best way to impove your score.

I've had a bankruptcy in the past. What can I do?

Bankruptcies are not the end of the world. The first thing you need to do is establish new credit. Try your local department stores or maybe Visa/MC. After, make all of your payments on time. Also, make sure your mortgage/rent and utility payments are all on time. Usually lenders would like to see this bankruptcy aged to at least three years in the past before lending on a home purchase or refinance, however, First Financial Services offers programs for people who are still in bankruptcy. You see with so many lenders to choose from we have programs for people in all situations. You may incur higher interest rates if your bankruptcy is recent.

I have had a foreclosure in the past. Can I still get a loan?

If you have been through a foreclosure this gets a little more complicated. Lenders like to see foreclosures aged at least seven years before lending on a purchase or refinance. However, First Financial Services does have programs which shrinks the aging needed tremendously. You should call a FFS Loan Consultant for specific program details.

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As always we welcome you to phone us with any questions or comments that you may have and if you're in the area please stop by and say "Hi".

First Financial Services, Inc.
130 Scruggs Road, Suite 203
Moneta, VA 24121
Phone: (540) 721-0010 or Fax: (540) 721-0285
Toll Free: (800) 804-0808