Your Credit Report - More Important Than You May Think

Perhaps the most important factor in qualifying for a home loan is your credit.
Companies such as Experian, TransUnion and Equifax routinely collect and maintain information from credit card companies, banks, department stores, etc., about your payment history, and use it to compile your credit report. In addition, they also collect information from collection agencies, county, state and federal governments, to report items such as collection accounts, judgments and bankruptcies.

The fact is today that many people have blemishes on their credit reports. Whether from divorce, being laid off, or just getting in over their heads, people can begin to re-establish their credit, and eventually qualify to buy a home. Some lending guidelines even allow you to obtain a home loan while currently in a bankruptcy and even stop a foreclosure. Just because your have a few late payments doesn't mean you can't buy a house. Times have changed. We have many programs for people with bruised credit. Don't automatically think you can't... Spend 15 minutes with a mortgage professional. You just might be surprised at what you hear!

Credit Risk Score?
Some credit grantors make hundreds – even thousands – of credit granting decisions every day.

To help them make those decisions faster and more objectively, they rely on a computerized process that results in a risk score (or credit score).

Your credit score is often a major factor in qualifying for credit. Lenders can obtain a computerized credit score when they pull your credit. This score is a number which represents an applicant's potential credit worthiness. Although credit scoring has existed for many years, it is gaining popularity in mortgage lending. Many loans are granted or denied on the basis of your credit risk score.

Until recently, Fair Isaac & Company, the creators of the credit scoring model refused to reveal the mysteries of what effects your score (good or bad), and how they arrived at it. Not anymore, click here for details: Credit Score Secrets Revealed. They have also recently began releasing to consumers their scores and interpretive data for a nominal fee.

Many times, information is reported incorrectly on your credit reports. A copy of your credit report can be obtained by clicking the link above. There is a dispute process that allows you to question the accuracy of items on your report, if you feel any items are improperly reported. You don't need to pay a credit repair company. One word of advice. Contact ALL THREE credit reporting agencies. Getting something corrected from one agency doesn't mean it got corrected with the other two!

You can get more information directly from the credit bureau's web sites.

• Experian -- http://www.experian.com

• Equifax -- http://www.equifax.com

• TransUnion -- http://www.tuc.com

DO YOU KNOW YOUR PERSONAL CREDIT SCORE?
When applying with the Joe Metzler Group of Mortgage Consultants, we will always be happy to share your score with you. Click HERE for more information about your personal credit score, and how to find out what it is.

WHAT'S YOUR CREDIT GRADE? Every lender uses different guidelines to determine your credit worthiness. Upon reviewing your application and credit report, you're given a credit grade and a determination regarding your loan's approval or denial. Click HERE for some general criteria used within the mortgage industry to determine credit.

Bruised Credit? Click here for more info. You CAN get a loan!