credit score prime
If i buy my first home with bad credit and agree to all terms that come with a sub prime loan….?
and say a month or two later my credit is good , middle score over 620……then can i refinance my loan to a prime loan ?
(i was just about to apply for a home loan as i have good credit due to authorised user tradelines, since this will change on sept 1 i wanted to get my loan before that. this morning i notice an incorrect entry on my credit report ($650). i will fight it but it will take 30 to 45 days…….too late for me because as soon as sept 1 hits… the au lines will not be considered and my middle score will crash )
You have to make a decision. I have a couple of questions.
#1 Do you have a home under contract presently?
#2 Are you pre-approved for a loan of any kind sub-prime or anything else?
You indicated you are about to apply for a home loan, so I can safely say that the answer to my two questions are “NO”
Since you have neither applied for a loan or have a house under contract, wait until you have fought the credit bureaus and cleaned up your credit a bit.
With a higher credit score you will be able to lower your interest rate thus lowering your monthly payment.
If you get pre-approved and find a house before Sep 1, you will get a loan that has a pre-payment penalty that will be in effect for a minimum of 2 years and could be in effect as long as 5 years, but normally they go no further than 3 years.
So make up your mind what you want to do and what is important to you.
I hope this has been of some use to you, good luck.
“FIGHT ON”
