Rent vs Buy in 30097>Question Details

Brittany, Home Buyer in Atlanta, GA

My credit score is a 602 currently What are some smart ways to boost my credit score to get the best rates?

Asked by Brittany, Atlanta, GA Sat Nov 10, 2012

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Answers

10
Rodney Mason’s answer
Hi Brittany,
For an FHA mortgage, most lenders require a 640+ credit score for the last 2-3 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.

To start improving your credit, you would need to contact each of your creditors directly to see what your options are. Paying off derogatory debt will help improve your credit score in the long run, but not immediately.

With collection accounts, most of the damage is done when they are initially placed on your credit report. Some collection companies are now reporting you are late each month the debt goes unpaid. This continues to drag on many people’s credit scores each month until the debt is paid in full. Until you do that, your credit score has little chance of improving.

To build positive credit, you typically need to have 2-3 trade lines reporting for 12-24 months. There should be no late payments or other derogatory items reported in the last 12-24 months.

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 Sun Nov 11, 2012
my score is now a 620.
Flag Tue Feb 12, 2013
If I have student loans that are not paid off but are current does that count as collections?
Flag Tue Nov 13, 2012
Good Job Brittany!! Keep on working at it....if I can be of help let me know.

Chuck
770-714-7077
0 votes Thank Flag Link Wed Feb 13, 2013
Good job. Just let me know if you would like to get Pre-qualified.

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
0 votes Thank Flag Link Wed Feb 13, 2013
Brittany,

Congrats! Give me a call & I'll get you pre-approved for your home loan. :)

K.C. Jones
RH Lending
214-432-0486
kjones@rhlending.com
0 votes Thank Flag Link Fri Feb 8, 2013
My credit Score is now a 620!
0 votes Thank Flag Link Thu Feb 7, 2013
Brittany,

Great question....anwered so far as determining what you need to do in regard to raising your score. Talk with Rodney he is very knowledgeable or call one of us for addtional lending sources to determine what your specific needs will be to raise your scores.....

one other thought is where will rates and home prices be in the next two years....is it an advantage for you to consider a purchase now versus one to two years down the road financially....no one knows for sure where rates and prices will be....

though we are seeing some price jumps in desireable areas now due to the lower level of available quality homes and as financial markets improve rates wil go up as they typically do when lending frees up and are not supported by federal reserve intervention as they currently are now....

Best Regards,

Chuck Green, Realtor
Keller Williams Realty
Chattahoochee North
678-578-2788
chuckgreen@kw.com
Web Reference: http://chuckgreen.com
0 votes Thank Flag Link Tue Nov 13, 2012
As the previous folks have said, you need to contact a mortgage broker to have them make specific recommendations to you about fixing your credit. I will also add that since you want to find a townhouse or condo and since it looks like you will need to do an FHA loan, be certain to work with a good Realtor that can advise you on which condo's are eligible for FHA financing. Not all of them are. I would be happy to help you on that front and explain the process. Let me now how it goes with the mortgage broker. Good Luck!

Rick Musto, Managing Broker
Buckhead Home Realty
770-480-766
rmusto@buckheadhomerealty.com
0 votes Thank Flag Link Sun Nov 11, 2012
I have a lender that can give you an FHA loan with a good low rate.
Right now!

If you want to boost your score even more purchase a secure credit card.
This will give you a positive trade line.



Isabel Elsesser, Realtor Full Service
First United Realty
Save Time & Money!
http://www.isabelsnewhomes.com
http://www.Buford.georgiamls.com
Direct 770-307-8751
Fax 888-799-3184
Over 25 Million SOLD

Free Buyers Agent!
0 votes Thank Flag Link Sat Nov 10, 2012
My suggestion would be talking to a Mortgage Lender, Brittany, and letting them tell you what should be polished up in the next few months to take advantage of these current rates-the lowest we might see in your lifetime. Please call, text or email if we can provide further assistance. Good Luck!

Michael Hammond
SellsRealty@gmail.com
404-538-5499

http://www.georgiamls.com/agentsite/index.cfm?SiteID=HAMMONDJOHNM

http://www.chapmanhallprofessionals.com

http://www.SellsRealty.org

http://www.city-data.com/

http://www.greatschools.org/
0 votes Thank Flag Link Sat Nov 10, 2012
I make close to 60k annually.
currently rent an apt for $900 monthly
Have a car note of $402
I am a first time homebuyer looking for a 3+bedroom townhome/single family home.
My target areas to live would be: johns creek, alpharetta, and sugarloaf (30043) I am not opposed to suwanee.
I plan on waiting no longer than 2yrs max depending on how soon I can boost my credit score.
0 votes Thank Flag Link Sat Nov 10, 2012
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