credit score
Your Credit Score Affects Your Ability to Purchase a Home
December 7, 2009 by Casey Deanwater · Leave a Comment
Buying a Home with a Low Credit Score
Have you ever considered what a lender thinks when he or she reviews a credit report in relation to approving or denying a mortgage application? Well, the most common answers would be: What is their credit score? How is their credit history? What is their income? What is their debt to income ratio? Will they be providing a substantial down payment?
When attempting to purchase a home, a large down payment may minimize the negative outcome of a poor credit history. This large down payment, however, will not guarantee a good interest rate or lower fees. In addition, the minimum score required to purchase a home has increased over the past 12-18 months.
You cannot hide from a low credit score. In order to purchase a home, it is necessary to have a good credit history, whether you can provide a large down payment or not. A prospective homeowner should attempt to obtain an average credit score of 758 in order to receive the lowest interest rates, according to CNN.com.
How to Obtain the Minimum Credit Score for a Mortgage
With minimal effort you can obtain your report and see exactly what is there. Often there will be mistakes or errors that you can dispute.
A dispute letter to the relevant credit bureaus would be a good start. Alternatively, to resolve the negative entry, you will need to contact the creditor directly.
Sometimes a cleverly crafted dispute letter will result in the removal of the negative entry. However, it is often the case that investigative procedures are careless and result in errors.
While investigating your claim, credit bureaus must spend time and man hours to resolve the dispute. Taking their time or ignoring the dispute is more to the liking of many credit bureaus. They hope you will throw in the towel and give up!
Will it Take Long to Boost My Credit Score?
A frequent concern is how long it will take to improve a low credit score. Although every situation is unique, you should expect anywhere between 6-12 months before your report is clean.
This may seem like a long time; however, it is certainly a shorter amount of time than waiting 7-10 years for the negative entries to be deleted. Also, if you want to purchase a home, it is wise to wait the 6-12 months to improve your credit report.
We raised our credit scores from the upper 500 range to 745 and 763 in under six months and got approved for our dream home. Discover the one rule you must obey in credit repair by seeing proof at www.creditforcouples.com and get the real truth about lexington credit repair.
