Home Buying in 19151>Question Details

Smitty, Home Buyer in Hyattsville, MD

what credit score do I need to buy a house. My median score is 610 high is 650.. low 550. What can I do to increase my scores. Thanks

Asked by Smitty, Hyattsville, MD Tue Jul 27, 2010

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Your best bet is to contact a mortgage loan officer who can guide you through the pre-qualification process. They should be able to help you streamline your finances to best prepare you for a loan qualification. Be sure you can document your income to your loan officer as today's financing is all about proving your income is legit.

The higher your credit score, the lower your mortgage interest rate may be. This will result in lower payments for your mortgage each month. Rates are the lowest they have been since the 1950's. Do yourself a favor and get that credit cleaned up ASAP!

As far as increasing your personal credit score, consider paying all bills on time, keep credit card balances below 50% of the max amount, don't open new credit, pay off old debt, pay down debt, dispute any negatives with the 3 credit reporting agencies. This should help you raise your scores.
0 votes Thank Flag Link Fri Aug 3, 2012
The best thing to do is to sit down with a lender who will guide you . You can go to http://www.hud.gov for resources for buyers and list of hud approved lenders and credit couselors.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Fri Jul 30, 2010
Hi Smitty,

You'll need a 620+ median score these days so you're almost there.

Here is a blog I wrote about ways to improve your credit scores that should really help you out.

http://www.trulia.com/blog/john_burke/2010/04/do_it_yourself…
0 votes Thank Flag Link Tue Jul 27, 2010
The better your score, the better the interest rate--not knowing why your credit score is low-- consider pay all bills on time, keep credit cards below 50%, pay off old debt, pay down debt, dispute any negatives, utilize a secured credit card if needed to establish credit--also keep in mind that your loan officer may have great suggestions as to improving your score in the fastest time, based on all your information--consider asking him/her the question as well.
0 votes Thank Flag Link Tue Jul 27, 2010
Smitty:
The closer your credit score is to 700 the better your interest rate will be and the easier it will be for your loan to go through underwriting.

- Make your payments on your credit cards early and over the minimum payment amount.

- Keep your credit card balances no more than 50 percent of the limit. If you Credit card limit is $2000.00 then pay it down to at least $1000.00 and keep it there.

- Get a small personal loan from your bank and make it a secured loan if you need to. Then use it but pay it off the next month. (This way you will have a paid off personal loan showing on your credit).

Don't close all of your credit cards. You will need at least three loans and or credit cards showing up on your credit report to have a healthy score. Many people close their accounts and have whats called a "Thin Credit File", that does not have ENOUGH credit.

Good Ludk!

___________________
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Tue Jul 27, 2010
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