want to build credit

My husband and I have been living in a house bought my parents bought, while we pay monthly rent. This was because we were struggling financially and had poor credit. We are now at a point where our credit is much better and are almost debt free. Our current credit scores are much improved, but are lower than they could be due to the fact that we don’t have any real estate payment history. We would like to get into a larger home and better school district within 8-12 months.

So my question is…do we take out a mortgage to buy the remaining portion of the house (60 payments are left) outright from my parents? How much time would it take to positively effect our scores? Would the inquiries negatively impact our scores more? Is it worth it?

I’m in the real estate business. First off, applying for a mortgage will hit your credit, but isn’t considered negative unless you can’t quality. Ask around for a good lender in your area and call them. Any lender worth his weight can discuss loan options WITHOUT running your credit. If you don’t know your score, use a service like Credit karma to get your scores. That way you can give the lender an idea if where you are. If it makes sense financially, do it.

Your best bet would be to talk with a mortgage lender or several to see how your situation would be viewed.