How To Get Credit Ready For A Mortgage
Are you struggling with your credit score? Trying everything under the sun to raise that score but don’t see any progression? Here is some information on how to get that score up, and what lenders typically look for. In general, most lenders are looking for credit scores of 620 or higher for someone to get into the normal standard programs such as FHA, VA, and Fannie Mae, which are the most common types of loans that people are applying for. This is not to say that these programs are your only options by any means, however if you are looking to use one of these programs, you will want your credit score to be in that range.
At The Truth About Lending, we offer many more options that the traditional few and can work with credit scores as low as 500.
However, in this article we will be discussing what you can do to improve the credit score you have currently. First and foremost, keeping your revolving credit lines at 30% of your available credit limit is very important when applying for a mortgage. In other words, if you have a credit card with a limit of $1,000, keep the balance at $300. If you can’t do that, the next best option would be 50%. It is important to remember that the dollar figure is not the important part here. It is the percentage amount that we are focusing on.