How much is enough credit to buy a home?

Banks are looking for a few things when you apply for a mortgage loans.

1- Three or more open trade lines (aka credit accounts) going back 2-years or more
2. Strong credit scores- 740 or higher gets best pricing options
3. Proper useage- Show that can you regularly handle credit
4. Multiple credit inquiries can mean looking for lots of new credit- this can reduce your score
5. Different types of accounts meaning credit cards, installment, car lease showing ability to handle credit affairs
6. Paying on time for your housing- this isnt on a credit report but an important piece of your ability to show you can handle a mortgage loan.

Now if you do not have all of there can be options. I will cover in a future blog what to do what you have a limited credit file.

Thanks

Alan