A Question About Credit Rating/Scoring and Mortgages?
At the start of the year my credit score was "terrifically poor", then it became "poor" and presently it is "fair". I am waiting for it to get to "good" and then "excellent" beforehand I apply for a mortgage.
My question is, once my credit score get to "excellent", how long must I wait before applying for a mortgage. This is contained by respect of the fact that the mortgage company will not merely look at the "excellent" credit score but also look at how long the evaluation has been "excellent". If they ascertain that my credit evaluation has only be "excellent" for one month, they will understandably be reluctant to grant me a mortgage. So how long is it advisable to keep on before applying for a mortgage from the moment that my score become "excellent"?
Thanks
Answers:
You don't necessarily need an "excellent" credit score (which is 961+) to qualify for a mortgage, though it will abet the level of borrowing you can get. You can expect a respectable plane of borrowing at a "good" score (901-960).
I don't think it really matter how long your score has be good or excellent for, as it is a credit "score", meaning you've earn those points over a period of time. It may, however, take a while to return with your score to the level you want, especially if in that is bad credit on your recent record, as greatly of lenders will want it far enough in olden times for it not to be an issue (and they usually want it paid off too). Source(s): 5 years as a Mortgage Consultant.
Ok. Here is the truth nearly your score. You need better than a 580 win and 1 year clean credit for an FHA loan and 3% (3.5% after 1/1/09) down payment and you can achieve a mortgage. I recommend to my clients to have at least 6 months reserves within an emergency fund that is used solely for life emergency's and replaced as soon as possible. You can almost other get the seller to discharge closing cost
I am a mortgage banker in TN & KY
Related Questions:
When shopping for a mortgage how is your credit ranking artificial?
I was told that you had 60 days after getting pre- qual info while shopping for a mortgage earlier your credit score was artificial. Is this true? It affects it from the day you apply till the time the loan funds. Your...
My question is, once my credit score get to "excellent", how long must I wait before applying for a mortgage. This is contained by respect of the fact that the mortgage company will not merely look at the "excellent" credit score but also look at how long the evaluation has been "excellent". If they ascertain that my credit evaluation has only be "excellent" for one month, they will understandably be reluctant to grant me a mortgage. So how long is it advisable to keep on before applying for a mortgage from the moment that my score become "excellent"?
Thanks
Answers:
You don't necessarily need an "excellent" credit score (which is 961+) to qualify for a mortgage, though it will abet the level of borrowing you can get. You can expect a respectable plane of borrowing at a "good" score (901-960).
I don't think it really matter how long your score has be good or excellent for, as it is a credit "score", meaning you've earn those points over a period of time. It may, however, take a while to return with your score to the level you want, especially if in that is bad credit on your recent record, as greatly of lenders will want it far enough in olden times for it not to be an issue (and they usually want it paid off too). Source(s): 5 years as a Mortgage Consultant.
Ok. Here is the truth nearly your score. You need better than a 580 win and 1 year clean credit for an FHA loan and 3% (3.5% after 1/1/09) down payment and you can achieve a mortgage. I recommend to my clients to have at least 6 months reserves within an emergency fund that is used solely for life emergency's and replaced as soon as possible. You can almost other get the seller to discharge closing cost
I am a mortgage banker in TN & KY
Related Questions:
When shopping for a mortgage how is your credit ranking artificial?
I was told that you had 60 days after getting pre- qual info while shopping for a mortgage earlier your credit score was artificial. Is this true? It affects it from the day you apply till the time the loan funds. Your...