Credit Score Mania Real Estate

So you want to buy a house and you’re concerned about your credit score.  The logical thing to do is look around to see how you can maximize your  score, knowing that the better the score the better chances at a lower  interest rate on your loan. This is mostly true, and here in Southern  California that can make a big difference in your monthly payments.    However, like so much else out there in the blogosphere, not everything  you read is true. This is why it
is so important to meet with your  lender early on in the home buying process.In fact ideally you would  have your initial meeting six months out, so you would have time to fix  anything that might need it. Your lender can tell you what you need to  do most and in what order. This is what will maximize your credit the  fastest. If you don’t yet have a lender, talk to your realtor and tell  him/her exactly what your concerns are. That way you’ll be given a  choice of lenders to interview who are best equipped with helping you in  this situation.

The following article is well intentioned, but the are some points in  there that I disagree with. Depending on the person it may all be true,  but it does not apply to all people. Here is my example: It claims that  it is a myth that short sales are better than foreclosures on your  credit report. That is misleading because there is no category for  “short sale” in a credit report. It can only be reported as having been  satisfied and perhaps some other words that mean that the debt no longer  exists, but is not a foreclosure. This variance alone can mean as much  as 50 points (to the positive) in your credit report. Hardly the same as  a foreclosure. Here is the article in MoneyWatch.com.


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