Credit Score - Buying a house?
Im getting married Oct 3rd, 2010. From now until then my fiance and I will be looking to buy a house or a condo. My credit score is 750. Is that going to be good enough? Will the interest rate be worse because my score is lower than my fiance's?? Advice? How do I get the score to go up to 800 +?
- loanmasteroneLv 71 decade agoFavourite answer
If you are purchasing a house together the lender will use the middle score of the one that earn the most income.
There are many ways you might raise your credit score and other sites can tell you how to do this.
If you have a 750 credit score then you have an excellent score. Depending on if you or your fiance earn the most money will determine if your 750 score will be used or not.
Before purchasing a property prior to marriage you should sign an agreement as to what is expected of the monthly payments, who will reside in the property in the event things do not work out between the two of you. It is better so solve this potential problem before the yelling start. I have had too many cases where good intentions went awry.
There are many things you should do, but the first thing you should do is contact a mortgage broker that does FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.
This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.
I hope this has been of some use to you, good luck.
- 4 years ago
Hi there, first of all all bank are different and banks use various credit scoring models. To make matters worse the models can change daily in line with risk e.g. because of the current credit crunch most banks will have raised the score requirement SO - The only solution is to get the best score you can and see a mortgage adviser to see which lender is accepting the most people with a fair interest rate - previously this would have been Northern Rock - now you might wat to consider the Abbey? OK the best score - every field on the app form is relevant I mean every field. So take time before you answer! Have you got a cheque guarantee card? Check every card and if not get one - even tho you may have snapped up your credit or store cards you still have them and they will appear on a credit search so tick the yes box and you will get more points. Another key one is the length in job/current home and bank - Just because you may have a bank that you use regularly that doesnt mean that you have been there the longest - have you an account that you opened as a child? Use that one for the form and your normal a/c to repay the DD - again more points. So I hope this proves useful - if you want me to arrange your mortgage in the future please just contact me. I am a independant mortgage adviser - AND I DONT CHARGE A FEE!!! Good luck
- 1 decade ago
You actually have a very good credit score and you will get a decent interest rate. Once you are married and are going to buy a house the lender you select will look at both of your credit scores as well as your combined incomes and your debt to income ratio, which you will want to keep as low as possible. When your debt to income ratio is calculated they generally compare the payments you have for things that you owe on, like a car payment, credit cards or personal loans and compare that to your monthly income. You will want to make sure your debt to income ratio is below 30%. Some lenders will let you go as high as 40%, but you are asking for trouble.
If you are concerned about getting your score higher keep paying your bills on time. Do not be late, ever. Slowly your score will go up, it just takes time.
- 1 decade ago
In general a credit score of 650 or above is considered pretty good for a mortgage loan. You should have no problems.
Raising your score can be done in a number of ways and some lenders have a calculator that will analyze your credit history and tell you exactly what to do to raise your credit score the most.Source(s): 6+ years experience as a real estate agent.
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- MeghanLv 71 decade ago
A credit score above 700 is very good. But your interest rate will still depend on things like your debt to income ratio, how much the home costs, your downpayment and any special programs you may qualify for.