(Closed) Trying to prep for buying a house and building credit…tips?

posted 7 years ago in Home
Post # 3
7587 posts
Bumble Beekeeper
  • Wedding: December 2010

You need to have less than 25% of credit card debt. Basically if you have credit cards with limits that total $1000 you should not have more than $250 owed on them. Most lenders now, will insist that this is the case. You need a minimum of 680 to qualify at all and 720 in order to get a good interest rate. You also need 20% down in order not to pay PMI.

Post # 4
4137 posts
Honey bee
  • Wedding: May 2011

congrats on being married!

you should definitely pay off your credit cards first. student loans aren’t held against you so much when it comes to credit, but balances on credit cards will kill you.

what is his credit rating? if it needs to improve, open a couple of store or gas credit cards and use them like cash — be sure to pay off the balance every month.

Post # 5
18643 posts
Honey Beekeeper
  • Wedding: June 2009

I would focus on paying down your credit cards and the loans for sure.  Especially since you are taking on more student loan debt, that is going to show as a negative on your account.

I don’t know how truecredit.com works but I’m sort of wary of those sites.  The only place to get your real credit score is through the credit bureaus (Experian, Equifax and Transunion).  You can also get a copy of each credit report for free annually at http://www.annualcreditreport.com.

I would try to save up at least 20% if it’s possible, a lot of lenders are wary of lending to people who don’t have a down payment now.

Post # 6
3049 posts
Sugar bee
  • Wedding: January 1991

We were going to buy a house before we got married… and then my dad made us take this Dave Ramsey class. He is a well known financial advisor. After working through his lessons, we decided to save so we can have a good down payment. And we also didn’t want to jump into owning something of that value at the beginnin of our marriage. Everyone’s situation is different though! So I’m glad y’all are planning for the future 🙂 I think you should focus on paying off all of your debt. Making house payments will be easier without debt and having other payments (cars, etc). Once you get rid of that debt, then you can focus on putting savings to your drent paymentown payment for a house. You will build lots of credit by paying off your credit debt. And if you are renting, see if the rental agency (or person) will report your timely payments. That can help as well!

Post # 7
3943 posts
Honey bee

All the advice above is good, and I just want to add that you should look into first time homebuyer classes in your area. We took one about a year before we bought and it was SO helpful. It was 5 hours for 2 days and they brought in experts from every part of the home buying process-mortgage broker, realtors, home inspections, lawyers, etc. and they went through everything you need to know about buying a home.

The class we went to is free and we can’t recomend it enough!

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