Quick Fixes To Boost Your Credit Scores For Mortgage

This guide covers quick fixes to boost your credit scores to qualify and get pre-approved for a mortgage.  Rebuilding and trying to boost your credit scores to for a mortgage takes time. However, there are quick fixes to boost your credit scores for mortgage loans. A person’s credit score, besides the down paymen, is one of the most important factor taken into consideration when applying for a mortgage loan.

Credit scores will determine whether or not a borrower will qualify for a mortgage loan as well as the rate and premium on the private mortgage insurance premium.

Credit scores determines the amount of down payment needed to put down on a home purchase. For example, if credit scores are below 580 FICO, homebuyers need to come up with a 10% down payment to qualify for FHA Loans. If credit scores are above 580 FICO, the down payment on FHA LOANS is 3.5%. In guide article, we will cover and discuss some quick fixes to boost your credit for mortgage.

Quick Fixes To Boost Your Credit Scores For Mortgage

Borrowers with credit scores above 620 FICO, debt-to-income ratio requirements to get an approve/eligible per AUS FINDINGS is 46.9% front-end and 56.9% back-end on FHA loans. However, if credit scores are below 620 FICO, the debt-to-income ratio can drastically reduced to 31% front-end and 43% back-end to get an approve/eligible per Automated Underwriting System Findings:

• A potential home buyer who is looking to purchase a home in the near future should contact a mortgage loan originator to get qualified and pre-approved.
• The loan officer will check and see what is needed to do quick fixes to boost your credit scores for a mortgage.
• There are many quick fixes to improve your credit scores for mortgage besides paying monthly bills on time.

Things That Will Hurt Scores

Those with prior bad credit and outstanding collections and/or charge-off accounts do not have to pay those balances off to qualify for FHA loans. By paying off old debt or open collections, that will drop credit scores. This happens because it activates an old credit account and makes it a current derogatory. Old negative credit accounts or collection accounts will not affect a mortgage borrower from qualifying for FHA loans. Once consumers pass the 7-year statute of limitations, it will fall off the credit report.

Bad credit accounts and collection accounts over two years old have extremely little or no impact on credit scores. Home buyers can qualify for a mortgage loan with old bad debt and/or open collection accounts.

Do not pay off any old bad debts with balances until speaking with a mortgage loan originator. Credit Repair is not necessary to qualify for mortgage loans. Credit disputes during the mortgage process is not allowed. Credit repair can do more damage than good when trying to qualify for a mortgage.

Credit Inquiries During Mortgage Process

Don’t apply for new credit unless absolutely necessary. Each credit inquiry will drop your credit scores by as much as 5 points. There are cases where people apply for a dozen credit cards all at once. This will plummet credit scores and will most likely disqualify you from obtaining a residential mortgage loan.

Advice on Quick Fixes to Boost your Credit Scores For Mortgage

High balances on credit cards will drop credit scores. By paying down credit balances down to 25% of the credit limit, scores will greatly improve by the next credit reporting period. This strategy is some quick fixes to boost your credit scores.

There are many cases where a consumer’s credit scores improve by more than 70 or more points just by paying down their credit card balances down to 10% of the credit limit level.

Prior Bad Credit or No Credit: Quick Fixes To Boost Your Credit Scores 

For consumers with prior bad credit and currently have no credit, credit scores are probably low. There are some quick fixes to boost credit scores. However, the easiest and fastest way of boosting credit scores and re-establishing credit is by getting a few secured credit cards. Adding new positive revolving accounts will do wonders. One $500 credit limit secured credit card can boost credit scores by 20 or more points. The ideal amount of credit cards is to get is three, $500 limit secured credit cards. Those who have low credit scores or recent prior bad credit, do not bother and waste time in trying to get approved for an unsecured credit card. The chances are it will get denied.

Getting Qualified and Pre-Approved For a Mortgage

Borrowers who need to qualify for a mortgage with a mortgage company licensed in multiple states with no lender overlays on government and conventional loans can contact us at GCA Forums Mortgage Group at 800-900-8569. Or text us for a faster response. Or email us at gcho@gustancho.com. The team at GCA Forums Mortgage Group is available 7 days a week, evenings, weekends, and holidays.

This guide on quick fixes to boost your credit scores for mortgage was updated on 17 December, 2024.

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