Fast Loans - Personal Unsecured

Your mortgage application will be considered for approval based on the following questions: How high is your credit score? What type of information is in your credit history? What is your combined income? How many outstanding debts do you have? How much is your down payment?

Large down payments can help you overcome negative information on your credit history or a less than desired credit score. For the duration of your mortgage, however, you will pay higher fees and interest.

Bottom line is that you have a low credit score. If you want to purchase your own home, you still need a good credit score.

According to CNN.com. you should have a credit score of at least 758 to qualify for the lowest interest rates available.

Now, more than ever, it is important to have a good credit score to qualify for the best rates. The credit crisis has forced the mortgage companies to raise the minimum credit score, within the last 12-18 months.

Improving Your Credit Score to Get a Mortgage

Your credit score can be a very confusing topic. However, if you focus simply on removing any bad credit information, you can make good progress.

Don’t believe the “experts” when they tell you that you cannot remove bad information from your credit report. They want you to think that you have to wait 7 - 10 years for the negative information to fall off your report and raise your credit score.

With a just a little bit of work, you can get a copy of your credit report to see what has been reported. If there are mistakes or errors on it, you can dispute them before the 7 -10 year waiting period.

You can start to correct the errors by writing a dispute letter to the credit bureau. Another option is working with the original creditor to fix the mistake.

Often, an expertly worded credit dispute letter will resolve the inconsistency. Although it has been shown that investigation methods are often sloppy and error prone.

This is because they ” the credit bureaus -must spend potential profits on time and resources to investigate any dispute. The unfortunate truth is that some credit bureaus have found it more cost effective to delay or ignore your dispute altogether.

Credit bureaus bank on the fact that you will probably give up and live with the cost of bad credit. Many people hire credit repair services to represent them in the dispute process.

How Long Will it Take to Raise a Low Credit Score

A frequent concern is how long will it take to improve a low credit score. Although every persons situation is unique, if you are looking for a fairly drastic improvement, then you should expect anywhere between 6 to 12 months before you report is clean.

This is nothing compared to waiting seven to ten years for the negative information to disappear from your credit report. It will be well worth the 6 to 12 month wait needed to raise your credit score, so you can purchase a home.