My husband and I are in the process of saving for a house, and hopefully getting approved with a first time home buyer program, using an FHA loan. However I have some anxiety & concerns about the process. We plan to start the pre-qualification process in October 2010, being honest his credit score is better then mine averaging 650-680. Mine on the other hand needs Jesus…..lol its average is 601. We are in the process of paying off or down all our credit cards to 10%. I’m hoping that by paying our credit cards bills on time and either off or to 10% that it will help improve both our scores especially mine. I have two collection accounts on my history which are both very old but can’t be removed yet. I am concerned that they will affect us when come time to get pre-qualified. Are plan is to save $25,000 and use $15,000 for the down and closing cost. My questions are…..
- Should I be worried about the two collections on my account?
- Will my score increase enough to help us get pre-qualified
- Is there something else we should be doing to help increase our chances to got pre-qualified.
