What is a good credit score to have when trying to purchase a new home?
alloure2001 asked:
How long does it take to go from poor credit to good credit? Are there some specific things that can be done to expedite getting to a good credit standing?
How long does it take to go from poor credit to good credit? Are there some specific things that can be done to expedite getting to a good credit standing?
It can take quite a while, my is in the 660′s and I just bought a $111k house for 6.35%
About 760 and above is considered A+ credit, entitiling you to the best rates available.
650 & above = very good credit
620-650=good credit, but possible potential trouble areas
might need additional documentation for loans
Below 620=OK but will have a lengthier loan process due to
being a credit risk
680 is average, so anything over that is good. I don’t know how long it takes to go from poor to good, but to expedite it
pay off any overdue bills and then pay all your bills on time. If you’re going to apply for a mortgage in the next six months, do not do the following: apply for credit cards with high lines of credit and then don’t use them. It will show a lot of available credit which increases your credit score, but recent credit applications hurt you. The best credit cards to have are ones you have had a long time, so never cancel those, just pay them off. Do not have credit card balances (on any card, not altogether) that are more than half of your available credit. Good luck!
yes,
Get ahold of the creditors that have posted bad reports.
And talk with them. Explain why you had to do what you did,
and now that u are back on your feet things are getting
straighten out. So ask what can u do to have them fix the bad
credit report they attached to your file.
Also U can have the Morgage Company who is doing the
credit report for Your loan contact U so you can explain
what went wrong. Everyone come on hard times in their life.
So U are no exception. Just tell then that was then and this is now.
Hope this helps?
Ben
PS
726 aand up is great.
Please don’t forget to rate.
Thanks
They have home loans for people will even the lowest of credit scores. What you want to think about is the interest rate, The higher your credit score the better interest rate, so the better payment you will get. You would want above a 700 score before seriously considering buying a house the reason for it is because when you finace you are stuck with the same interest rate until you refinace (you don’t want to refinace for about 2 or 3 years after you get your house) so you want to wait until you can get a decent interest rate. You couls get what is called an arm (ajustable rate mortgage) in order to get a lower rate but after 2 or 3 years the rate will jump up unless you refinace to a lower fixed rate. An arm is usually just to get you in the door so you can build credit and get a decent interest rate for the first couple years.
Ways to build or obtain good credit:
Some banks have credit cards where say the limit is $300. You give the bank the $300 as a sort of deposit (they might not ask for the whole amount for a deposit) then you use the card for things like gas and what not, I wouldn’t go over $150 in charges in a month and then you pay it all off as soon as you get the bill (that way no interest will be charged). Only buy what you know what you can afford. Some banks might just approve you for a card with out a deposit… If you can get those use it and pay it off the same way. you will likely get your deposit back after you have built your credit up or when you request a higher limit or lower interest rate. Another and very easy way to build your credit up in a quick way would be to have either you mom or dad (or someone who trusts you) add you on one of their cards as an authorized user. They never have to give the card or tell you the accoutn number. What this will do is show up on your credit report. All it will say is that you are on a credit card and how long it has been open for (not how long you have been on it, but how long the person who added you has had it) and then it will say account in good standing, never a late payment (if that is true other wise it will say whatever the status of the account is). The key to this one is make sure it is someone who has good credit and make sure they add you on a card that is in good standing and has never had a late payment.
I hope this helps!