How a 30-50 point increase in your credit score will get you pre-approved to buy a MInnesota home

Before applying for a Minnesota home loan you may use one of the credit monitoring services to check your credit score and history.

Some may check credit karma which isn’t what lenders are going to use as a score. What you are most interested in is getting your credit score above a 580+ credit score to make more of your Minnesota loan programs easier to qualify for such as USDA, FHA and Although you can get VA loans done under a 500 score it will always make it easier to have a higher score.

A very large part of your credit score is made up of your payment history and credit balances. Because of this it’s very important to keep your balances pretty low to show that you aren’t maxing out your available credit.

A safe bet may be 30% of your available credit balance. It’s not the Ed of the world if you are at 50% to 70% of the ax available.

This will prove that you are great at managing credit. Now make sure not to be 30 days late on any payments as most of the time this will get reported to the credit bureaus. One 60+ day late in the past 12 months and you’ll have a tough time getting a home loan even a VA home loan.

For many that don’t use credit much having a credit card, gas card or department store card that reports your on-time payments monthly should increase your credit score.

Any recent lates or smaller balances paid off could give you that 30-50 boost in points that you are looking for. When Minnesota home loans are easy to get with a 580+ credit score you’ll find that only 30-50 points helps a lot.

You can read my other posts how even paying your Netflix bill and utilities is on time is very important. Find out how close you are to qualifying by reaching out on messenger for a live conversation.

If you don’t easily qualify with a bank check out the contract for deed program here

Thanks,

Ron

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