Credit Score in Birmingham>Question Details

kristydreams…, Home Buyer in 35126

My credit score is 605 and I want to know what to do to raise the score so we can purchase a home.

Asked by kristydreamsbig1, 35126 Fri Nov 30, 2012

I just received my credit score from a mortgage broker and I would really like to know what steps to take to raise my score so we can purchase a home. I'm a first-time homebuyer and we have seen a few homes in our area that we like.(price range 64,000-71,000.)

Help the community by answering this question:

Answers

13
I work with a lot of people who have less than perfect credit. I tell all my clients that need a pre approval to visit The Lenders Network, I have seen loan approvals from them even with scores under a 600. So if anyone can get you a loan they can...

Good luck!
3 votes Thank Flag Link Mon Nov 11, 2013
I am in the office today, just finished a loan application for a young person that first contacted me on 7/15. I know the date because I still have that credit report. I just ran DU and the application was approved, first mortgage and DAP, 100% financing. And not one illegal step taken to boost her credit score.

I don’t lend in your area, and my site is for people that are buying a home in Kentucky, but the section on credit reports, scores and repair may be of interest to you. The link below will get you started, follow the link on legal credit repair until you reach the Legal Credit Repair Guide on the second page, authored by yours truly. It is a step-by-step guide that will get you from here to there. Good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
3 votes Thank Flag Link Sat Dec 1, 2012
Kristy, I have learned a lot from this article, you should check this out: http://online-today.com/credit-score-range/. Good luck with your home!
1 vote Thank Flag Link Mon Dec 10, 2012
Just to add to the sugestions - one thing that many consumers don't realize is........even if you pay your credit card bill on time, all the time, if you've used up more than 50% of the credit line on your account, you will be penalized.
Simply payig on time isn't enough to raise the scores.

So......try to pay down any outstanding balances to below 50%..and do NOT close out any accounts! Contrary to what many think, closing accounts can lower your scores, too............its better to leave them open, and just not use them.
1 vote Thank Flag Link Sat Dec 1, 2012
Always paying all of your bills on time is the starting point. From there, you need to make sure that you do not have any outstanding collection accounts/liens/judgments.

For an FHA mortgage, most lenders require a 640+ credit score for the last 3+ years now. Prospect Mortgage is one of the few direct lenders to offer an FHA 580-639 FICO loan program. Credit profile is a major factor in a mortgage approval. Generally, there should be no late payments, new collections accounts/charge-offs/liens/judgments in the last 12 months. It is required that all open collection accounts must be paid in full if their cumulative balances exceed $1,000.

The 3.5% down payment can be from the borrowers own funds or it can be gifted from a family member. Getting Pre-Qualified is the only way for you to find out your options.

Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing
1 vote Thank Flag Link Sat Dec 1, 2012
Hello Kristy, I have two options for you. Contact NACA by visiting there website at http://www.naca.com read the section for purchaser. NACA is not credit score driven, they will evaluate your current credit report and advise you in a direction to purchase and save to buy a home. They can give you a lot more details on their program, their number is 205-942-8111 (Zell Brown).

Or contact Michal Ali at 205-283-0977 with the The Mortgage Company, he can give you some directions on getting your score to a 620 to purchase.

There are first time home buyer program available to assist you in downpayment and or closing cost, for more details contact me at 205-215-7323.

Russell Realty & Associates
1 vote Thank Flag Link Fri Nov 30, 2012
Did the loan officer offer to run a what if simulator in order to determine what accounts could be addressed in order to raise your score?
0 votes Thank Flag Link Thu Dec 27, 2012
Good morning kristydreamsbig1,

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website. http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE. http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.


Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
NMLS#3528
0 votes Thank Flag Link Thu Dec 27, 2012
This is Kristy again. I got a letter in the mail with 3 different scores on it. The scores are 626, 605, & 598. How much do you have to raise them to purchase a home? I have no credit cards or anything. The only thing on the credit report is unpaid medical that is being paid down.

Also, thank you for all the advice!! It is greatly appreciated! We have been praying for direction for our lives and praying for a place to call home. All you guys help and advice will get us one step closer. Thanks!

Grace & peace,
Kristy
0 votes Thank Flag Link Fri Dec 7, 2012
Kristy,

Give me a call or send me an email. It sounds like I can get you approved for a loan with 3.5% down. Most lenders require several open trade lines, but I can accept alternate trade lines like your car insurance, cable, phone, utilities, etc.
K.C. Jones
214-432-0486
kjones@rhlending.com
Flag Tue Jan 8, 2013
Did your mortgage broker not give you suggestions on what you can do to help raise your score? I would start there. If they dont know what you can do, I have one that can definitely tell you what you can do and help you through that process to get you there. Saying all that, there are some programs out there that you can get a mortgage with your current score. If you would like to talk about this and get you in a home, please give me a call and i'll be glad to help get you in your first home..

Thanks
0 votes Thank Flag Link Fri Nov 30, 2012
Kristy,I have resources available to help you.Please call me at 205-337-1963.Kind regards,Darrell Sloan.
0 votes Thank Flag Link Fri Nov 30, 2012
Kristy,

I am working with a lender right now that has a program that you could qualify for now without having to raise your credit score. Call me for details. 205-461-2370.

Thanks!

Adam Cox, Realtor
Coldwell Banker Preferred Properties
0 votes Thank Flag Link Fri Nov 30, 2012
What else did your CREDIT REPORT say?
Did it show some old reportings that said you still owe them?
Did it show creditors whom you are slow paying?
Did it show accounts that you owe more than your LIMIT?
Did it show people that gave you bad marks because you owe them money?

This is a list of projects for you to attend to.
0 votes Thank Flag Link Fri Nov 30, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer