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 our incomes are $90,000, we have $5,000 in savings and we are first-time buyers. We live in Brooklyn (11226).
Answers | 5
Financing guidelines require a minimum of a 640 credit 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 maximum credit availability, this will lower your 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
My suggestion is to 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.
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... this would be less stressful and give you more bargaining power with sellers!