How can I repair bad credit to buy a home?
How can you improve your credit score in order to buy a home? It is a great question. I get asked that quite a bit. Typically, you need to improve your credit score because you have late payments or maybe there was a bankruptcy, foreclosure or some collections. In order to improve your credit score, the easiest way is to make sure that your credit card balance does not exceed 50% of the limit at any point in time. If you can, I would highly recommend for you to pay those balances off in full each month. Additionally, if there are late payments and collections, the longer the history is from those collections to the present is going to help improve your credit scores. Those late payments, those collections, the further away those are, the better your scores will be as long as you are making your current liability payments in a timely manner. I would also highly recommend when you are talking to your loan officer, see if they can potentially guide you in the right direction. If you do need additional credit to improve those credit scores, you may want to go to a local bank or a credit union, open up a secured credit card, use that credit card on a monthly basis, and pay it off in full. Again, make sure you do not go over 50% of the limit, but typically I like to recommend 30%. Do not go over 30% of the limit. Pay it off in full in a monthly basis. Your credit score will improve overtime. –Scott Shafman, Senior Mortgage Banker NMLS: 243704