Mortgage Loans Obtaining Mortgage Loans Depends On Fico Scores

Mortgage Loans Obtaining Mortgage Loans Depends On Fico Scores



Mortgage loans – Obtaining Mortgage Loans Depends on​ FICO scores
FICO Scores were developed by Fairlsaac Corporation .​
Fairlsaac is​ a​ leader in​ the​ credit-management arena .​
Their development has become an​ industry standard for determining an​ individual’s credit worthiness .​
the​ score is​ determined by payment history,​ credit history,​ which includes how many credit inquires have been made on​ you​ over a​ period of​ time,​ how much credit you​ have actually used and what kind of​ credit you​ are using.
The score grades your history .​
It provides a​ snapshot of​ how you​ make your payments .​
If you​ make your payments timely,​ you​ will have a​ low credit risk score .​
the​ FICO score shows on​ credit reports .​
If you​ score is​ lower than 500,​ you​ pay a​ premium to​ obtain a​ mortgage .​
If your score is​ above 700,​ you​ can obtain better interest rates.
Ways to​ increase your score are:
1. Pay your bills on​ time .​
Late payments reflect negatively on​ your score.
2. Pay your medical bills .​
If you​ account is​ turned over to​ a​ collection agency,​ this will have a​ negative impact on​ your score.
3. Pay your school loans .​
in​ addition to​ reflecting negatively on​ your score,​ the​ government will find you​ and force you​ to​ pay this obligation.
4. Since the​ number of​ inquires impacts your score,​ less is​ better .​
the​ assumption is​ that more inquires indicate you​ have been turned down for credit.
You can obtain your credit report yearly from each of​ the​ three major credit reporting agencies .​
Federal law makes this possible .​
the​ report will lay out your credit history for you​ to​ review .​
Correct all errors .​
When you​ find an​ error,​ notify the​ creditor and all three reporting agencies .​
the​ credit must send a​ letter for the​ mistake to​ be rectified .​
you​ need to​ stay on​ top of​ this process .​
Finding adverse credit issues when you​ actually need to​ obtain credit will hinder your ability to​ obtain financing .​

Mortgage lenders look for at​ least three open credit accounts older than a​ year .​
Maintaining long term accounts will help you​ immensely .​
Pay your bills on​ time .​
Pay high credit card debt and pay off interest loans first .​
Don’t use your credit card to​ its limit.
You can seek a​ pre-qualified loan for a​ mortgage before you​ seek housing .​
This process is​ usually verbal and often free of​ charge .​
Once you​ have a​ pre-approved mortgage,​ you​ can complete and application easily .​
This is​ a​ legal loan agreement which should expedite the​ closing on​ your home .​
Of the​ two – pre-approval and pre-qualified,​ the​ best is​ pre-approved .​
This approval gives you​ an​ idea of​ your buying power and determines what you​ can actually afford.
Your Real Estate agent can guide you​ in​ the​ right direction to​ start your process of​ applying for loans.




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