Credit And A Low Interest Rate:
Understanding your credit history and your credit score is essential if you want to get a great mortgage and a low interest rate. Far too often homeowners and potential homeowners don’t take enough time to review their credit and see how it may affect the terms they might get with a new mortgage. Having the right information is important and we strive to bring you relevant information when it comes to purchasing a new home or for home owners looking to refinance their current mortgage. Below is information about understanding your credit, your credit score, credit report and your rights. If you have any questions please contact us directly at 1-800-550-5538.
What Is A FICO Score?:
Confused by what really goes on with your FICO score? Join the crowd. We all know the importance of a good FICO score when getting loan but how much do you really know about what a FICO score is? A FICO score, which is used by mortgage companies to determine your loan terms, is a term for a credit bureau score and specifically refers to the score derived from the complex FICO statistical model (see www.myfico.com). A credit bureau credit score, like Trans Union or Experian, measures the relative size or degree of risk a potential borrower represents to the mortgage lender or investor. Each of the three major credit bureaus have their own scoring method, or statistical model, for calculating scores. The bureaus rely exclusively on their own informational data for calculating these credit scores.
Have you heard or seen the adds from companies that claim they can wipe away your bad credit history? They say they can get rid of a bankruptcy, collection accounts, charge offs…etc. Don’t believe them and don’t waste your money. Any errors on your report you can get removed on your own with a little work. Having an accurate credit report when obtaining a mortgage is important so please advise a loan officer if you notice any errors.
Knowing What’s In Your Credit Report:
Understanding what’s in your credit report and how it affects your mortgage rate is an important part of getting a low rate mortgage. The reason I’m posting this article (By Julie E. Sturgeon • Bankrate.com) is because it does a great job explaining the truth about your credit score. The biggest misunderstanding out there today is how inquiries affect your credit score (see item #5). Enjoy the article and if you have any questions about your own credit, please do not hesitate to ask me or visit www.myfico.com (one of the best sources for information about your credit score).
Divorce And Your Credit Report:
If you’ve recently been through a divorce or are contemplating one, you may want to look closely at issues involving credit. Understanding the different kinds of credit accounts opened during a marriage may help illuminate the potential benefits and pitfalls of each.
There are two types of credit accounts: individual and joint. You can permit authorized persons to use the account with either. When you apply for credit, whether a charge card or a mortgage loan, you’ll be asked to select one type.
Your Rights As A Consumer:
A good credit rating is very important and knowing your rights as a consumer helps each a high credit rating. Businesses inspect your credit history when they evaluate your applications for credit, insurance, employment and leases. Based on your credit payment history, businesses may choose to grant or deny credit, provided you receive fair and equal treatment. Sometimes, things happen that can cause credit problems: a temporary loss of income, an illness, even a computer error. Solving credit problems may take time and patience, but it doesn’t have to be an ordeal.
How do you know if you’re being scammed be a Credit Repair company?
1. They want you to pay a large fee (hundreds if not thousands) up front before doing any work.
2. They ask you not to have any contact with the bureau directly.
3. They ask you to try and obtain a new social security number or other fraudulent activities.
The Fair Credit Report Act:
If you’ve ever applied for a charge account, personal loan, insurance, or job, there’s a file about you. This file contains information about where you work, live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy.
Companies that gather and sell this information are called Consumer Reporting Agencies (CRAs). The most common type of CRA is the credit bureau. The information CRAs sell about you to creditors, employers, insurers, and other businesses is called a consumer report.
If you would like a no cost – no obligation quote please contact us directly at 1-800-550-5538. We have a top rating with the Better Business Bureau, the Business Consumers Alliance and offer industry low mortgage rates. You can also connect with Loan Officer Kevin O’Connor on Twitter @Rates01.