Lee, Home Buyer in Cincinnati, OH

is it possible to get approved for a loan with a score of 549? I have some money save, been at my job for 14 yrs, been at my residence for about 5yrs?

Asked by Lee, Cincinnati, OH Tue Feb 28, 2012

I've been thinking about paying off the existing debt but i was told that may lower my score even more, I'm confused? just trying do the right thing..

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Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Tue Feb 28, 2012
640 is the minimum threshold in my shop, I doubt the amount of debt is pushing your scores down, I have seen credit reports with crazy amounts of debt, one example the monthly payments equaled the applicant’s gross income, yet she had a very high credit score.

It isn’t the amount of debt, but how you manage it that bashes the score. Most of the people I help make the mistake of focusing on one or two “light issues” and ignore the elephant sitting on their chest. Having said that, high balances on credit cards will lower scores and they are accumulative, with the first that goes above the magic line doing the most damage. Start with the small limit high balance cards and pay them down first, below 25% of the limit on the account, keep it open but the balance very low. Work you way up from the smallest to the largest because you get as many points tweaking a small account as you do a large one and it takes a lot less money to do a little one.

The info about credit repair I linked belwo may keep you from harm. Good luck,
1 vote
William Dawes, , 44460
Tue Feb 28, 2012
Good advice from Mr. Simms as always below. You will need a 640 score. Be proactive and aggressive and you will get there.
Web Reference:  http://www.honestlending.net
0 votes
Ron Adams, Agent, Loveland, OH
Tue Feb 28, 2012
There are mortgage professionals who can look at your current credit score and advise you as to best get your score up. FHA minimum is 620. You can easily move your credit score higher by doing a few simple things. First call should be to a mortgage professional in your area....he or she will be happy to help you improve your score.
0 votes
Elliott R. O…, Agent, McLean, VA
Tue Feb 28, 2012
Paying off old collections may bring your scores down. Paying down revolving debt like credit cards will have a positive effect on your scores. Just depends on your overall credit profile.

Please take a minute to read this about credit: http://www.trulia.com/blog/elliott_r_oliva/2011/07/credit_10…

You would need to get your scores up to at least a 620 or better for FHA and 680 or higher for Conventional financing.
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