Should I wait until my credit score reaches 720 before buying a house?

Answer 1

As you may or may not know it is very difficult to buy a house now for people with low credit scores (less than 700.) The stock markets are falling and companies are failing because they lent money to people who were not creditworthy at ridiculous rates they could not afford. So to be blunt you don't have a lot of opportunity now as it stands, but that's not to say there isn't hope. First let me say that for you it may be cheaper and more financially sound for you to rent until you either get a better credit score or the housing economy improves again (which can take years). Fixing your credit score though won't take as long so focus on that for now.

Let me share with you my tips that you can use to build your credit score quickly. I raised mine to well over 700 points fro 500 using these steps in less than a year -- :

# Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score tracking listed below. It really helped my get my score up.)
# Never Miss a Payment, Starting Today
# Never use more than 20% of your Available Credit
# Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
# Extend Your Credit Limit on Cards You Already Have before You Get New Ones
# Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
# Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
# If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
# Take out a Small Personal Loan and Repay it Over a Year
# Ask Someone With Good Credit if They will Account Shadow you

Read more here:
10-Ways to Boost Your MyFico Score
http://millionster.com/articles/debt/increase-fico-credit-score/

Answer 2

100% absolutely yes! 720 is a benchmark and more options are available to you. Trust me on this! Even though there can be exceptions made, it's far easier to just have the solid 720 mid score than to fudge around with it. With the market changing everyday you will be on solid footing with a 720.


Edit;
The person below me that states you can get the same rates at a 620 as a 720 has been misinformed. That is the most idiotic thing I have heard yet! Not only are the rates different, but everything is different; from the LTV allowed to the max DTI to the amount of documentation required. Finding the right loan officer means finding one that is out for YOUR best interests. Advising someone that a 620 FICO qualifies the same as a 720 is downright ridiculous and I am offended at their assertion that they have 10 years of experience!

Answer 3

No u dont have to, but with a score like yours and a few trade lines in good standing, you can get a good rate. Anything lower than ur 720 and u run the risk of getting a bad rate that will hurt u in the end. Hope this helps.

Answer 4

You do not. However, many lenders prefer to see your credit score higher than 700. Keep in mind that you can get the same good interest rate as someone who do not have that ideal credit score That will depend on your lender's programs. Some of them offer 100% financing, or no money down, or not credit check, etc, so be sure that you explore every option available in the market. Hope this help

Answer 5

Depending on what is your current credit score, some banks will loan you at 680 with good rates. if your score is 650 and lower it will be better for you to wait and fix your score.
one more thing to consider when buying a house, if housing market in your area is slow, you can afford to wait for one year or more. but if you are buying in area where there are at least 5% appreciation on property value every year, you should think of buying as soon as possible.Don't miss out on the equity

Answer 6

That depends - is it on the way UP to 720, or DOWN to 720. If it's on the way DOWN to 720, don't wait.

Answer 7

Not necessarily. Depending on the rest of your profile (income & assets), you should be able to get the same rates down to at least a 620 score. Assuming you find a good loan officer, that is.

Answer 8

The better your credit score the lower your rate will run. If you can wait then do it it will save you money.

Answer 9

Yes, or longer. Especially now, since housing is undergoing a correction, and prices might drop. You'll also want a sizable down payment. Anything is better than nothing, but 20% gives you a nice rate.