Credit Repair....Get Started!

It's no secret that guidelines for minimum credit scores have changed for any type of credit and particularly home loans. Less than a year ago a credit score of 580 would get you an FHA loan approval. Than it jumped to 600, 620, and now 640 for both FHA and VA. Conventional loans are even higher at 680 if the mortgage needs PMI. Unfortunately, a portion of the home buying population doesn't get it. Low credit scores are no longer acceptable. They need to start working on repairing their credit now. It might surprise you that the credit repair process in many cases does not take that long to reach an acceptable credit score. A recent client was able to take a 625 middle score to 686 within 4 months. If you feel intimidated by the process and don't know where to start, enlist the help of a credit repair/consulting firm. They can be found online or by simply asking your loan officer for a recommendation. Lately, bogus credit repair companies have been in the news for charging large upfront fees to repair credit and doing nothing for their clients.

Avoid those companies that charge upfront fees and always ask for a written agreement and explanation of their responsibilities.

The bottom line is get involved with the credit repair process. Ask your realtor or mortgage lender for advice and if needed a reputable company to assist you in bringing up your scores. The following are a few companies that I've gotten good feedback on: https://www.nationalcreditcare.com/ , https://www.veracitycredit.com/ , https://www.improvemycreditusa.com/ . There are no guarantees in how high your scores will rise and how fast the process will take. However, it's certain that you'll be disappointed with your low scores until you get involved with credit repair.