Increasing Mortgage Scores for new home purchase in 6 months

Anonymous — Fri, 07 Feb 2020 17:05:41 GMT

My husband and I are hoping to purchase our first home (new home build) this summer. I picked up a part-time job in October to help throw all that money towards paying stuff off on our credit and saving for down payment. We had our credit reports pulled back July 2019 and was given a plan by the mortgage lender to get our scores to 620 in 6 months time. That was the earliest she said she could get them there.

Based on our lowest mid-score between the 2 of us, mine was the lowest. Equifax 467

I have a plan in place but just recently started paying on some things. I pulled my equifax report on my fico just to see where my score was before everything starts hitting my report as paid or removed. My equifax is now 523

Do you think we could get to where we need (580) in 6 months by paying off the following:

Collections:

IC Systems $131 ( they remove after paid) Paying 2/21

GLA Communications $157 (they remove after paid) Paying 2/21

Another Medical collection $307 (they remove after paid) paying 3/20

LVNV (Credit One) Got settlement with them yesterday. Paying 3/20 (they remove after 30 days)

Open Discover IT secured card - I currently don't have an active/open credit card in my name

PRA (Cap One) Got settlement with them this week. Paying 3/20 (they remove after 30 days)

Re: Increasing Mortgage Scores for new home purchase in 6 months

glockrunner — Fri, 07 Feb 2020 17:39:59 GMT

I believe there is a good chance you can get there if all those collections get deleted. But they all will have to get deleted otherwise just 1 will still suppress your scores. To achieve the best scores possible scores you should have 3 CC's in your name. Not having this doesn't show a lender that you have a good payment history. Maybe this can be overlooked with your joint application and husband's history. I'm not saying go out and get credit cards because you will only get subprime cards and lenders don't like newly opened accounts less than 6-12 months before a mortgage application. Of course, everyone's situation is different. -

topic Increasing Mortgage Scores for new home purchase in 6 months in Mortgage Loans

Increasing Mortgage Scores for new home purchase in 6 months

Re: Increasing Mortgage Scores for new home purchase in 6 months