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I am ready to buy a house but?

 I want to get our credit score up to 700 right now it is 640. We have a $30,000 down payment. Should I wait until our score is 700 or buy now? I have seen several house I like but I want to get the best mortgage rate possible. What is your professional opinion. thanks
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March 04 - US
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Answers (8)

Most Lenders lend at 640. I would not bother paying anything down until you speak with Licensed Loan Originator. Make sure they are licensed not just registered. I would jump in to the market as prices seem to be on the rise again. (at least where I am) Your interest rate will not change much if at all with a higher score.

I hope this helps

Mike
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March 05
Unless you have high balances on revolving debt that you can pay down, I would expect your score to move up slowly. With such a healthy down payment, I would not expect you to have high revolving balances. With this assumption in mind I see two possible scenarios. 1. You buy a home now at a slightly higher rate than a 700 score would provide and hope your score gets better while rates hold so you can refinance into a better rate 6-12 months down the road. 2. You wait until your credit score moves up and hope that rates hold or get lower. If they move up while you are waiting, the benefit of a higher credit score has gone away. 

Hope this helps your decision.

All the Best!
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March 05
Your credit scores are currently acceptable for most loans. Lenders like myself can go as low as 580-620 depending on what type of loan you are seeking. Those credit scores you have allows most lending options available to you such as FHA, conventional, VA, USDA, etc. If you would still like to improve your score, you can do that too. The simplest way to fix your score is to pay off your debt and revolving credit balance on time. Also, have you considered buying down your rate? This may another effective method to lower your rate. Either way, the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
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March 05
Rates and prices are likely to go up as we move into spring.  I think your current score should get you a good enough rate.  With any luck, you can rescore after making offer and before completing loan.
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March 04
A bigger question is have you gotten your loan approval completed. Doing that first will give you a better idea if you need to wait. What you'll learn is how much house you can afford based on your credit score and down payment. 

There are steps to buying a home. When you work with an experienced Realtor like me, I will guide you through the step to make the process of buying a home successful.

Good Luck
Let me know if you have further questions.
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March 04
If you have a lender in mind already, discuss the situation with him or her.  By seeing what's causing your score to be a 640, it may be easy to raise it and quickly.  Also, your lender can show you the cost difference to you for a rate at a 640 score and one at 700 or higher.

If the cost to buy down your rate costs less than what it will cost to improve your credit score, there is no reason to wait.  These are just a few scenarios your professional loan agent can have with you to make your purchase the most cost-effective as possible. 

Everyone wants a low rate or the best rate.  Consulting a seasoned loan professional can help you make the most cost-effective choice.  The path to the best rate and getting there with the lowest costs isn't always achieved by going straight for improving your credit score by paying old collections or paying down credit cards.  Sometimes it costs less to do it other ways. 

And if you do pay points or even if the seller pays points for you to buy down your interest rate, they are tax deductible by you.  Contact me if you are in California and would like more information or if you'd like me to refer you to someone within our company licensed in your state if you aren't already working with a good loan agent. 
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March 04
why dont you get pre approved and while doing this  ask the person you work with to price out the same  scenario using both a 640 and a 700 score ......then  decide if the difference is worth making the move now

the other factor about waiting  is that  the rates will change ....so if they increase  by the time  your score improves - there is the possibility you will end up with  a worse deal   ( of sourse opposite could happen too )
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March 04
Interest rate is important, but it should not be a deal killer for you.  If you are ready to buy now, and have the down payment saved for a home purchase, then I would consider buying now without having the 700 credit score.  Contact a couple lenders and have the give you a loan cost worksheet and discuss the difference in payment hypothetically if you had a 700 vs a 640 score.
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March 04
 
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