In the post 2008 crash era it is imperative that your credit is really good if you want to buy a home. Gone are the days when you could get a stated income, stated deposit mortgage with a credit score of less than 600.
The reality of today’s mortgage industry is that stated income loans are basically not available and a credit score of 600+ is required for mortgage financing at a decent interest rate.
The first step for the prospective home buyer is to get a copy of their credit report and survey it for negative information. If your credit score is less than 600 then you need to set out on the process of credit repair.
While is is possible for a person with poor credit to to a diy fi for their credit there really is no comparison to what a credit repair company can do to improve a persons credit score.
There are a number of credit repair companies who can give tips on how to repair your bad credit and this is an excellent place to start on the road to a great credit score and a great mortgage loan with a great interest rate.
A relatively easy thing to do to help improve your credit score is to make sure that you are not carrying large balances on your credit cards relative to the credit limit. The balance on a credit card should never exceed 20% of the credit limit of the card. If you must carry a large balance then spread it over a few cards ensuring that no individual card has a balance that exceeds 20% of its limit.
If you are new to credit then follow the time honored tips of always paying your monthly payments on time, late payments not only incur a late payment fee, they are also reported to the credit bureaus and will have a negative effect on your credit score.