Large down payments can help you overcome negative information on your credit history or a less than desired credit score. For the duration of your mortgage, however, you will pay higher fees and interest.
Bottom line is that you have a low credit score. If you want to purchase your own home, you still need a good credit score.
In order to qualify for the lowest interest rates, you need a minimum credit score of 758, according to CNN.com
Within the last 12-18 months, the minimum score to qualify for low mortgage rates has increased. Qualifying for the best mortgage rates has always meant that you need to have a good credit score.
Obtaining the Minimum Credit Score for a Mortgage
Don’t be confused by your credit score. Simply remove bad credit information to see an improvement.
The “experts” claim that you cannot remove derogatory information from your report. They want you to believe that there is no way to raise a low score without waiting for the bad credit to automatically disappear ” often taking 7-10 years.
With a just a little bit of work, you can get a copy of your credit report to see what has been reported. If there are mistakes or errors on it, you can dispute them before the 7 -10 year waiting period.
You can start to correct the errors by writing a dispute letter to the credit bureau. Another option is working with the original creditor to fix the mistake.
Sometimes, a professional credit dispute letter will expedite a resolution. However, investigation methods can be sloppy and filled with errors.
This is because some credit bureaus don’t want to spend the time or resources to investigate the dispute. It is simply more cost effective to ignore or delay your dispute.
They want you to just live with the cost of having bad credit, and hope that you will give up on your dispute. This frustration causes some people to hire credit repair services to take over the dispute process.
When Will My Low Credit Score Be Raised
Most people are anxious to know how long it will take to raise their credit score. Each case is different, but typically, it takes an average of 6 to 12 months to see a drastic improvement in your credit score.
This is a long time but it certainly beats waiting for seven to ten years for the negative information to be dropped on its own. It is worth waiting an extra 6 to 12 months to raise a low score, especially when purchasing a house.
Discover how lexington law helped a local couple get approved for a mortgage despite having bad credit. Visit their blog www.creditforcouples.com to find out how they deleted charge offs and collection items. You can also grab a free credit repair form or call 1-866-246-7311 for a free consultation.
