09-06-2013 11:01 AM
I am in the early stages of wanting to buy a house. I am unable to apply do some credit issues per FHA guidelines.
When I first inquired, I had a score of 570(average) and per FHA guidelines I need a min of 620 to get pre-approved for the mortgage. That was at the end of July. Since that point, I have done a lot to hopefully improvie my score. Here those are:
Everyhting hasn't hit the bureaus yet, but for the credit experts out there, do you think what I have done will increase my score by 50 points or more. I am 33 and have 15 years of credit history. A lot of accounts are over 5 years old. Thanks for your expertise.
09-06-2013 11:25 AM - edited 09-06-2013 11:27 AM
09-06-2013 11:36 AM
Utilization is around 55%, I am working on getting that down as well. Late payment was 10 months ago and collection was 3 months old, so those will no longer/will be no longer on credit as a derogotory item.
09-06-2013 11:42 AM
DTI isn't scored by FICO.
Getting the late and the collection removed would probably get you well over 50 points being as new as they are. YMMV and your entire credit profile plays a part.
Your utilization is very high. Bring that down to one card reporting at 9% or below and the rest at 0 and you will see a very good score bump.
What are your FICO scores now? The higher your scores the bigger impact anything has on your score. Especially down.
09-06-2013 12:49 PM
All pretty consistant. I know my utilization is high but I can't pay much more down while saving for down payment. I know if I can get my scores up to minimum per FHA guidelines, I think I'll be fine for approval. I have long employment history with current employer, good income, and a dti of 30% which will include a 1200 mortgage pymt including taxes and insurance. Just need my scores to increase a little more. Hoping to get pre approved by nov 1 if my credit scores improve
09-06-2013 12:56 PM