Can I Buy My First Home In Six Months?

I am a looking to purchase my first home in the next 6 months.my biggest issue is recent delinquencies on my credit report and lots of little open lines of credit. I have already closed everything on my credit report.to increase my score from 496-600? Can it be done in 6 months time??

Tanisha

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Hi Tanisha,

You have asked a tough question – a really tough question.

It’s difficult (closer to impossible) for me to know your credit profile and how it will be impacted in six-months time based on two sentences, although before I award you with the golden key for having Stumped The Experts, I’ll answer your question this way. 

Yes, it is possible for a credit score to go from a 496 to a 600 in six-months.

I read: “I have already closed everything on my credit report”.  Does that mean that the negative entries were closed and paid to a zero balance?  If so, then you are in tremendous shape.  If not, and the negative items are original creditors (and paticularly if they are recent) then deal with them this way, and if the items are collection agencies then deal with them this way.

What will be lacking and needed at the time that you apply for a mortgage loan, will be active and open positive tradelines.  My recommendation is two secured credit cards and one authorized user account.

The mortgage industry is going through a change at present and the guidelines are becoming more and more stringent.  The credit score alone is no longer the determinant for mortgage loan approval – the underwriters are also looking for tradelines.  The secured credit cards will help in that regard.  Also, make sure you are paying your rent payment with a personal check each month.  The rental verification can count as one of the required tradelines.

Have you considered a lease-purchase? 

Thanks for the questions. 

Paul