Credit ruined bc of a missed payment - How long to recover? (loan, pre-approved)

[jimmy92683]

I am in the process of buying a home. My window is between now and December of this year. I just contacted a loan broker and my credit scores were 756, 735, and 739. Earlier this year I traveled outside of the country and missed a payment to Target and they reported it to the three credit agencies. My scores before this were usually around 780 to 800. I haven't asked the loan broker yet but are these scores good enough for a good rate? If they are not good enough and I wait until the end of this year, will my credit scores recover and likely go beyond 750?

Thanks,

[AZ Manager]

Good enough for a good rate, not the best rate out there but very good still.

[Thinking-man]

Originally Posted by jimmy92683

I am in the process of buying a home. My window is between now and December of this year. I just contacted a loan broker and my credit scores were 756, 735, and 739. Earlier this year I traveled outside of the country and missed a payment to Target and they reported it to the three credit agencies. My scores before this were usually around 780 to 800. I haven't asked the loan broker yet but are these scores good enough for a good rate? If they are not good enough and I wait until the end of this year, will my credit scores recover and likely go beyond 750?

Thanks,

Jimmy,
depends on the bank. The bank (major US bank) that i bank with, views anything over 740 as excellent and the rate is the same whether your score is 741 or 850. I thought it was strange too, but at least for them, that's the case. So i'd check with your lender. I think you'd be able to get close to the best, if not the best rate with your given scores.

[CSD610]

Originally Posted by jimmy92683

I am in the process of buying a home. My window is between now and December of this year. I just contacted a loan broker and my credit scores were 756, 735, and 739. Earlier this year I traveled outside of the country and missed a payment to Target and they reported it to the three credit agencies. My scores before this were usually around 780 to 800. I haven't asked the loan broker yet but are these scores good enough for a good rate? If they are not good enough and I wait until the end of this year, will my credit scores recover and likely go beyond 750?

Thanks,

One missed payment is not going to "ruin" your credit.

If you must finance get pre-approved a few months before you start looking seriously for a home otherwise pay cash and don't worry about having to finance anything.

[Pfhtex]

You're fine. 740+ = Gold, there is no higher tier. And, It's only a 25 bp cost (quarter of a point) if you are between 720 and 739, which I or any lender would eat, thus offering you 740+ terms at no additional cost to you) in order to earn your business.

[FalconheadWest]

Your credit score is fine for a decent rate, but many lenders want 12+ months of no late pays on anything, so you might have an issue with this late pay that is less than 12 months earlier. They're going to want documentation on why it happened and why you think it won't happen again.

[TimtheGuy]

Originally Posted by jimmy92683

I am in the process of buying a home. My window is between now and December of this year. I just contacted a loan broker and my credit scores were 756, 735, and 739. Earlier this year I traveled outside of the country and missed a payment to Target and they reported it to the three credit agencies. My scores before this were usually around 780 to 800. I haven't asked the loan broker yet but are these scores good enough for a good rate? If they are not good enough and I wait until the end of this year, will my credit scores recover and likely go beyond 750?

Thanks,

definitely not ruined. you can qualify for a low rate mortgage right now.