My husband and I had absolutly perfect credit 3 yrs ago, we could get approved for anything, unfortunatly some circumstances out of our control, Car wreck, layed off, etc., happened all at once and our credit got ruined. However this year my husband recieved a big pay increase and we will be out of debt at the end of Feb. We want to buy our first home at the end of this year, my question is how soon after i pay off the debt will my credit reprot start looking better. How soon can i start inquiring about home loans, to get the best rate possible?
How soon will it be off my credit report?
Bad credit does stay on for 7 years except bankruptcy which is 10 but most lenders look for 2 to 3 years of good credit. So what we did was use our cards for things we always buy like groceries and things but deduct the money from the check book register like we had written a check. Then at the end of the month pay it off. That way your report shows continued use and current payments. Lenders will usually ask for an explanation about what happened at a certain time and will still work with you as long as you have shown yourself to have overcome it. I would write your explanation down and have it with you at the time you apply so they can put it in your file. Good Luck
How soon will it be off my credit report?
Seven years is the standard for credit reporting to retain items....
How soon will it be off my credit report?
Start talking to a couple loan officers/mortgage brokers soon.
Find someone who is willing to work with you to actually get your credit report cleaned up before you want to buy. This process can take months, as any dispute takes 30-45 days to clear, and you may have to do it more than once. So if you want to buy in 8-10 months, starting now is best.
Often, paid collections can be deleted from your record. It might even make sense to pay a company to do this stuff for you, though it can be done yourself if you research how to do it. Or maybe you find a loan officer who has some experience with it.
Find someone who isn%26#039;t only trying to push you into a subprime 2/28 ARM. You should look for someone willing to try to get you agency or FHA loans first. If they don%26#039;t know what an agency loan is (Fannie Mae or Freddie Mac products), find someone else.
How soon will it be off my credit report?
Seven yrs
How soon will it be off my credit report?
Any bad debts, delinquent payments or defaulted debts you had will stay on your credit report for years. You can get a free copy of your credit report from the URL I%26#039;ve listed below. However, even if you pay off all your debts, your FICO (see definition in URL) score will be lower due to the deliquent payments you had. This will affect the interest rate you pay for your mortgage. You may actually want to wait a year before buying a house to establish the fact that not only have you payed off all your debts, but that you continued to maintain good payment habits thereafter. This will help your FICO score. You will also want to establish a larger down payment for your house. This will also demonstrate to lenders that your income is steady enough to reduce your risk.
How soon will it be off my credit report?
If all of your delinquent accounts have been settled and all of your debt will be paid off, your credit will begin to increase. It really depends from situation to situation on how your FICO score will end up. However, if you can stay at $0 debt on cc at least, pay your monthly bills on time for the next year, you should be well on your way to getting a mortgage. I suggest holding off as long as possible before getting pre-approved for a mortgage. You can look online and there are plenty of helpful mortgage calculators you can utilize. I personally think it%26#039;s best to give yourself a house budget before you get pre-approved for a mortgage. B/c they may approve you for $200k, but you may only be comfortable paying a $150k mortgage. This is why many people get in over their head. Also, I would open up an online savings account at 5.05% (Emigrant or HSBC Direct). This way you can build interest on your down payment and you will be less apt to spend it. Also, if you are a first time homebuyer, there are many good programs that will have lower interest rates and require lower down payments.
How soon will it be off my credit report?
It is standard practice that information, negative or positive, be made available for seven to ten years. However, there is NO law in the United States that says the information HAS to be maintained for that length of time. The Fair Credit Reporting Act makes it clear that the information CAN be listed for that length of time but does not make it a REQUIREMENT. The information does not have to stay on your credit report for seven minutes much less seven years if you don%26#039;t want it. There are provisions in the FCRA that allow you to have negative information removed from your report. In fact the FCRA consists of 340 different laws. This gives you 340 different tools to use. Congress passed this act into law to PROTECT you from the erroneous and inaccurate record keeping practices of the credit bureaus, so use it. The credit bureaus and lending agencies don%26#039;t want you to be educated because this hurts their business. So educate yourself; or hire someone who is educated in these matters (a lawyer or credit restoration company) after doing your due dilligence.
I have posted in other threads ten tips on how to tell the legit credit restoration companies from scams. If you cannot locate those threads you can email me and I will be happy to email you the same article I posted to them.
If you have any questions regarding your credit issues, you may email me at nebula7693@yahoo.com
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