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So You Wanna Buy A House?! Part 1: CREDIT

Here's a few tips to consider if you are wanting to buy a house. I get several questions about what can I do if I have challenging credit and I want to buy a house. So, I put together these five tips that is a quick read that you can take into account as you work towards your goal of homeownership.

1) You need at least three credit tradelines on your credit report that has been have been established over the period of the last two years i.e. furniture your car note and a credit card that's a good mix of trade lines

2) Also those tradelines need to show a 24 month history of no late payments if there are late payments if you are required to submit a letter of explanation explaining why your payment was late if it was due to a hardship financial difficulties or things like.

3) Any derogatory credit will have to be explained in a letter of exclamation in addition to the fact that any collections, judgments, bankruptcies, and late payment I should be resolved by the time you apply for a mortgage.

4) Any student loan payments that are listed on your credit report are considered in your debt to income calculations for the mortgage so if you have 25 separate student loan payments I would highly encourage you to seek loan consolidation for your educational debt.

5) Ideally you need a minimum 640 credit score in order to be considered for a mortgage so use the following steps mentioned above to work on your credit if you have some challenges.

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