Purchasing a Home vs. a Low Credit Score
When your credit report is being reviewed in connection with a mortgage application, the lender will most likely have these questions on his or her mind: Is their credit score acceptable? Is their credit history good? How much income do they have? How much of a down payment will they be providing?
The negative effects of a less than stellar credit history may be minimized by a large down payment; however, you will still likely pay more in fees and end up with a high mortgage interest rate. The fact is that in the past 12-18 months the minimum score necessary to buy a home has increased.
There is no way to distance yourself from having a low credit score. A good credit history is necessary to purchase a home, even if you do have a large down payment handy. According to CNN.com, a prospective homeowner's credit score goal should be an average of 758 in order to obtain the lowest interest rates.
Find Out How to Raise Your Credit Score and Improve Your Chances of Purchasing a Home
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.
Your first step should be a dispute letter to the credit bureaus involved. Contacting the creditor directly to resolve the negative entry would be another way to start.
A well-written dispute letter will often result in the correction of the credit report, i.e. the removal of the negative entry. It is to be noted though that investigative techniques are often careless and error prone.
This is because credit bureaus must spend potential profits on time and resources to investigate any dispute. The unfortunate truth is that some credit bureaus have found it cost effective to delay or ignore your dispute. Their hope is that you will give up on your dispute.
How Long Will it Take to Raise My Credit Score
Many people want to know how long it will be before they can see a difference in their credit score. In most cases, a fair estimate would be 6-12 months.
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. - 31379
When your credit report is being reviewed in connection with a mortgage application, the lender will most likely have these questions on his or her mind: Is their credit score acceptable? Is their credit history good? How much income do they have? How much of a down payment will they be providing?
The negative effects of a less than stellar credit history may be minimized by a large down payment; however, you will still likely pay more in fees and end up with a high mortgage interest rate. The fact is that in the past 12-18 months the minimum score necessary to buy a home has increased.
There is no way to distance yourself from having a low credit score. A good credit history is necessary to purchase a home, even if you do have a large down payment handy. According to CNN.com, a prospective homeowner's credit score goal should be an average of 758 in order to obtain the lowest interest rates.
Find Out How to Raise Your Credit Score and Improve Your Chances of Purchasing a Home
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.
Your first step should be a dispute letter to the credit bureaus involved. Contacting the creditor directly to resolve the negative entry would be another way to start.
A well-written dispute letter will often result in the correction of the credit report, i.e. the removal of the negative entry. It is to be noted though that investigative techniques are often careless and error prone.
This is because credit bureaus must spend potential profits on time and resources to investigate any dispute. The unfortunate truth is that some credit bureaus have found it cost effective to delay or ignore your dispute. Their hope is that you will give up on your dispute.
How Long Will it Take to Raise My Credit Score
Many people want to know how long it will be before they can see a difference in their credit score. In most cases, a fair estimate would be 6-12 months.
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. - 31379
About the Author:
Discover how I raised my credit score from 582 to 745 in four months with the help of Lexington Law. Learn the truth about quickly and effectively deleting bad credit at www.creditforcouples.com.
