how do i clean up my credit to buy a home?

Asked by shayharris21, Simpsonville, SC Mon Jun 17, 2013

Help the community by answering this question:

+ web reference
Web reference:


Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Tue Jun 18, 2013
Good afternoon shayharris21,

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.…

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

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
1 vote
Andrea Jones, Agent, Joplin, SC
Tue Jul 16, 2013
This is free and it works.
0 votes
Jewel Swinton, , Greenville, SC
Mon Jun 17, 2013
Hi. You will need to get a copy of your credit report. You are can get one free report per year from Equifax, Transunion, and Experian. Try to get your copies. Once you have them, check to see if there is anything that you don't agree with on them. If you do, put your dispute in writing to the credit bureaus. Sometimes you can contact the creditors and work out payment arrangements to begin paying down the debt. Just a suggestion, but start paying the smaller accounts first. Collection items can remain on a credit report for 7 years. Bankruptcy will stay on a credit report for 10 years. Remember every time you apply for credit, your score goes down. If I can be of any help to you, contact me at (864) 363-7808.
0 votes
Kim Eisen, Agent, Twin Cities, MN
Mon Jun 17, 2013
A good loan officer may help you with what you can do or I have had clients that used credit repair attorney's that really helped them. I'm not saying it's for everyone, but their credit score did go up so they could buy. This is not a recommendation but you can check them out.
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Mon Jun 17, 2013
There are only two legal ways, file bankruptcy or pay off existing collections and don’t miss any payments. Disputing accurate information just because it is negative is lying, and that is a very serious crime if you do it in order to get a mortgage. Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes
Search Advice
Ask our community a question
Home Buying in Greenville Zip Codes

Email me when…

Learn more