If you have any credit cards that are maxed out, or near their maximum, start to pay them down. If they are currently over the limit, make sure you pay them below. Also be vigilant about paying every account by the due date. If for some reason you miss that date, pay immediately, do not wait to pay 2 months together. If many of your accounts have been closed, and you still have open ones, look for cards with zero balances right now. Use them for very small amounts, like $10, and pay them immediately when the bill arrives in the mail. After about 6 months, your scores will increase.
A number, roughly between 500 and 850, that summarizes a consumer's creditworthiness.
The higher the score, the more able and willing a consumer is to repay a loan, lenders believe. The best mortgage rates and terms go to borrowers with credit scores of 740 and higher. Generally, a "low" credit score is in the "fair" to "poor" ranges below. Hope this helpful
750 and higher = excellent
749 to 700 = good
699 to 650 = fair
649 to 600 = poor
599 or lower = bad
We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.
It is unlikely you could be approved for mortgage financing with that credit score at this time.
Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.
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.
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.
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services
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Now that you know how much of a loan you can qualify for and you have your prequal letter have a great time house shopping. Start online and narrow down the homes you really like, then do a driveby to see the area. In todays market many homes are being sold by multiple offers.
I would check to find the best realtor in your area and get an appointment. Be ready to fall in love and buy a home. You will know the home when you walk in the front door.
Keller Williams- Central Oklahoma
ERA Courtyard Real Estate
Best of Luck,
Josh Barnett, Realtor
Metro First Realty
One place you could seek a mortgage that is more flexible would be a local credit union if you are either a member or have access to becoming a member.
The best first step would be to sit down with a local mortgage lender and have them pre-qualify you. They can then tell you whether they can work with you or not and many (though not all) have people on staff who can assist you in raising your credit score over time if you're interested.
Wishing you the best of luck and hopefully some happy house hunting.
The steps you are going to need to take are:
1. Go over your credit with a specialist, many lenders have credit building tools that are out of the box, but can raise your scores 30 or 40 points quite rapidly. Also, in some cases there are small collections that can be paid at which point your scores may increase. This is definetly something to discuss with the person you are working with because there will be instances that paying a collection can actually reduce your credit score.
2. Your options are really to continue renting until your credit is strong enough and you have saved enough to buy your home or, search for homes that are for sale and available for owner financing. These are more and more common and are a great benefit to buyer and seller when terms are put together right.
Bill Williamson, ABC Mortgage Lending Services
Good luck and if I can be of assistance please call me at 405-550-6004 or email me at firstname.lastname@example.org.
The best advice I can give you is to work on your credit. It may take a year maybe 2 but you can get your credit scores brought up. You will need a credit score of a minimum of 620.