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How To Improve Credit Score And Qualify For A Mortgage The FHA mortgage rates are lower than they have ever been, currently at approximately 3.75% for 30 year fixed terms. Because it is a buyers market at the present moment it is causing many consumers to wonder how to improve credit score and qualify for a mortgage. The majority of people just coming under the qualifying score need just a little bit of help to get over that mark and approved for the mortgage. The general rule of thumb these days is a minimum of a 620 middle score is needed in order to be approved for the mortgage. If there are recent delinquencies on the credit report then the underwriter will bump that up to a 640 middle score requirement. Of course these vary form lender to lender and program to program, but as a general rule they are fairly accurate. Because credit scores can vary drastically between the credit bureaus it is important that you take a look at your credit before you think about purchasing a home. Some accounts report to all of the credit agencies and some just report to a select few. This is the reason that mortgage underwriters use the middle score when reviewing an application for approval. It is the most logical solution since each credit bureau can vary so much. An example would be a consumer who had a collection account that he or she was not aware of. Let’s just assume that it is from a local small collection company and they only report to Trans Union and Equifax, but not Experian. Now, with all things considered the mortgage broker pulls credit and the Experian score is great, showing a solid 740 score. Now, because of the collection account the Equifax score is a 618 and the Trans Union score is a 605. This middle score in this simulation would be a 618, just shy of being approvable for the mortgage. But, with a little bit of credit repair help that consumer should be in the 740 range across all credit bureaus in no time at all. Instead of waiting for the mortgage banker to pull the credit it is a good idea to pull your own credit to get a good idea of where you stand before you seek out a mortgage. When you access your own credit there is no drop in score as it is classified as a soft inquiry. Technically you could pull your own credit all day long and never see a negative affect. This will also allow you to see if there are any credit issues that you will need to have taken care of before you apply for the mortgage. Many mortgage brokers will suggest professional credit repair when asked how to improve credit score and get in a position to be able to buy a home. The very small investment required to improve your credit score is well worth it when you consider the amazingly low mortgage rate you will be able to qualify for.

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