Posted on: 04th Feb, 2009 07:43 am
I have worked on my credit history for the past year and have corrected many issues. My balances are kept under 30% of credit card max's and only have one late pay showing from almost a year ago. My current scores are 648, 651, and 661. I am wondering if now would be a good time to apply for a mortgage or should I give it another 6 months to a year.
Your scores are high enough to qualify depending upon some additional factors such as ratios, LTV, etc. I guess what it comes down to is where rates will be by the time you get your score up to the 700 range. You may find that if rates climb, your future score of 700 may get you the same rate as your 651 score can get you today. Now, if you waited 6 months to save money so that you would have enough of a down payment to avoid PMI and get a better rate by keeping your LTV at or below 80%, then that would be a good move.