Best Mortgage Advice How To Fix A Credit Score

by Jonathan Carnes
(Minneapolis)

I'm a student, and during my wild years in school I've managed to rack up a fair amount of credit card debt, about $2500. I need the best mortgage advice to learn how to fix my credit score so I can buy a home.

I missed several payments so the credit card was closed down while I was in a depressed, anxiety-filled hole in my life.

I understand that this lowered my credit score, but I wonder if it is a surmountable obstacle in the quest to eventual home ownership.

What recourse do I have to improve my credit, or fix my credit score?

Would you suggest living out of the US, where I could simply purchase a home with saved funds?

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Best Mortgage Advice
Fix Your Credit Score

Dear Jonathon,

My best mortgage advice is don't look for a quick fix. Instead fix your credit score.

I never failed to be amazed when my mortgage clients would return to me a year later, after I put them on a 12 month plan to improve their credit history.

The previous year, they looked bewildered and downcast. But one short year later, after focusing on paying their bills on time, they returned to my office with a fresh outlook on life.

I advise homeowners to avoid mortgage foreclosure as it is not only detrimental to credit, it is also costly to a homeowner's life. Avoid Foreclosure Save Your Home Save Your Life explains the long term consequences of foreclosure.

For the same reason I try to convince potential home buyers to pay their bills on time. Just as you learned, it makes it harder to buy a home with a poor credit rating. BUT! It is not impossible. You just need a long term plan.

My website, Get Your Best Mortgage Rate is packed with tips and strategies to help you prepare to buy a home. Start with How To Fix A Credit Score where you will find helpful and practical ways to improve your credit.

Please check back often for the best mortgage advice to fixing your credit score and becoming a homeowner.

Good Luck and Happy Credit,
Kate

P.S. Go to my Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.

P.P.S. Jonathon, I do not know much about buying homes or obtaining financing outside the US.

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