My fiancé and I are preparing to purchase a residential home . How can we get pre-qualified with my credit score at 564 and hers at 656?
Both incomes : $90,000, $5,000 in saving and we are first time buyer. Live in Brooklyn (11226).
Financing guidelines require a minimum of a 640 Fico score for most programs. Here are a couple tips that I can give you to help improving your scores:
1. Pay off any collections, or judgments
2. Pay down revolving debt. If you owe near your max credit availability, this will lower Fico scores.
3. Review your payment history. If anything is inaccurate you can file disputes with the three credit reporting agencies. (Transunion.com , Equifax.com , Experian.com )
Hope this helps?
Sincerely, Sarena Solomon | 11.07.14 @ 19:14
We can do FHA loans with score as low as 500 ( short sale or foreclosure must be 3 years ...) collections must be paid at closing
My suggestion is first meet with a lender who gives you a copy of your full mortgage credit report and start working on improving, fixing and paying the blemishes before you make any offers | 12.05.14 @ 19:31
Great suggestions by the two previous professionals. You may also consider using your spouses score only but get up to 680, not hard with suggestions above. Suggest you not apply for the loan or make any offers until you get your handle around your credit. You both make good income and should have a good disposable to pay off / down your debt. Write to each credit bureau and dispute the inaccuracies. Some will drop off by no response. Then for the legitimite credit balances pay off or down. Negotiate where you can. Try and get collections deleted. Some will in exchange for payment. Delete is not the same as paid Satis. You must also ensure there is no debt that is deliquent or collections outstanding no matter how small or old if not addressed it drives the score down. 680 can you get a decent rate 720 or better can get you premium pricing. While it may take a while to increase score from 564 not 656 especially if you have a few items that are rectified or removed that may have been root cause of low score.
Then find a good seasoned mortgage professional in your area to work with you before making any offers. Get fully approved so all you need to do is attach the home to the loan ..less stresssful and more bargaining power with sellers! | 12.11.14 @ 22:56
You can't. She will have to have the income to qualify on her own. She can add you to the deed after closing with a simple Quit Claim. Good Luck! | 06.23.15 @ 16:04