Higher Credit Scores on the Horizon

It used to be we could do a loan for anyone with a credit score of 500 or more. Currently the minimum required credit score for Merrimack Mortgage Company is 620. Most of the other mortgage companies in our area are also requiring a minimum score of 620 -- or higher! That's right some have already gone to a minimum of 640!
Rumor on the street is that a 640 minimum is just around the corner and will soon be the standard.
As it turns out, at least 50% of the people who inquire (at our branch) into a first time homebuyer loan do not currently meet the 620 minimum score. We have dozens of people/couples we are coaching to help them raise their scores to the minimum of 620. We have issued preapprovals to dozens more who have credit scores between 620 and 640. So if the minimum score goes up to 640, all of these files will need to be reworked.
The good news is that everyone can have a good score with a little work! So if you are below 620 (or even 640), do the things you need to do to get your score where it needs to be. Here are some helpful hints:
1) You should have a minimum of 3 open and good trade lines. If you don't then apply for credit now and get those 3 minimum tradelines on yoru report.
2) You should have no late payments on anything in the past 12 months. Been late recently? Do what you can to pay on time each and every month!
3) Keep your balances on credit cards close to 50% (or less) of the credit limit. That's how you get a better score. People who are maxed out have lower scores.
4) Do not open any new accounts -- unless you have less than three tradelines.
5) Do not close any accounts -- unless you have way too many. Try to close newer accounts in this case and keep older accounts open. The longer the account has been open, the higher your score is!
6) Pay off all non-medical collection debt, past due amounts, judgements, etc.
7) For medical payments, be sure to negotiate unpaid balances to a zero balance or make payment arrangements. You can't just leave outstanding balances hanging out there. You need to work with the providers so you don't have medical collections on your report. These drive the score down.
8) Contact the Amazing Loan Ladies at www.NHmortgages.com for more help with your credit report if you are in NH, Mass or Maine.