Good morning Wolf2,
In the current lending environment most Lenders want a minimum 640 credit score to qualify for mortgage financing. With a score of 630 you are not far off the mark, but it sounds like you have some work to do to improve your credit before you consider undertaking the obligation and responsibility of a mortgage loan.
I'd recommend meeting with a Local Mortgage Banker for a complete review of your Prequalifications. If there are minor issues you can address to help improve your credit in a short time, your Mortgage Banker can advise you properly on the steps to take. If this is a long term problem, you'll at least be advised correctly that you are not qualified at this time and what steps you can take to prepare for homeownership.
Here's my Primer on improving credit in order to become a Homeowner:
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.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm
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.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services