I want to get pre approved for a house really soon.....?

Question

but I just recently paid off a lot of my debt. I am sure it hasn't been updated on my credit report so when they look at it, it will still show it. So do I wait for it to update? Or take some kind of receipt that is has been paid? Thanks

Answer 1

Paying off derogatory items won't improve your score. The damage is done and will remain for th balance of the 7 year reporting period. Mortgage lenders will require that all derogatory items be settled before approving a mortgage.



If you've just paid off this debt, it may take up to 60 days before it shows on your credit report, depending on when the creditor reports to the credit bureaus.



It's good that you are gettin pre-approved for a mortgage. That way you will know exactly how much house you can really afford. Besides your credit report and score, other factors that will be considered are: stable employment history, salary, debt to income ratio, other assets, and downpayment.

Answer 2

Lily - Get a free credit report showing your most recent credit score. Paying off debt sometimes is good - and sometimes it's not. Lenders will look at your score before telling you whether you qualify for a loan with them, and at what rate. When you order a credit report, they should be getting the most recent information, so if your creditors have recorded your pay-offs, those should be in your report.

Good luck!

Answer 3

Wait. Spend some time doing research and homework. Borrow a book from the library on buying your first home. Work up a budget and be honest in just how much you can afford, what a lender will approve you for. What kind of house, neighborhood and so on. The better prepared you are the easier the process is.

Answer 4

Sit down with a local lender and have them take a look. Internet lenders will bait you with great interest rates, but typically the terms and closing costs make their offerings an unattractive package.