 Your Credit Score
Information provided by
Lenders
for Life
The Importance Of Your Credit Score
Your credit score is a scoring model designed to quantify the chance you
are likely to pay off your debt without being more then 90 days late.
Credit scores range from 350 on the low end to 850 for a top score.
Obviously, the higher your score the better. A higher score gives you
better opportunity to obtain lower interest rates to finance you
property. One out of 1300 people have a score over 800.
Factors that Influence Your Credit Score
- Payment History: 35% of your total score
Simply put, paying your debt on time has the
greatest impact on your credit score. If you miss a high payment,
like a house payment, this will have a greater impact on your score
then a lower payment.
- Outstanding Credit Balances: 30% Impact
This is the ratio between the outstanding balance
and available credit. For example if you have a $9500.00 balance on
a credit card that has a $10,000.00 limit you have a very high ratio
of balance to available credit. Try to keep you balance to available
credit under 30%.
- Credit History: 15% Impact
This portion of your score represents the length
of time a particular credit line has been established.
- Type Of Credit: 10% Impact
Mortgages and Car payments are more positive then
credit cards at higher interest rates.
- Inquiries: 10% Impact
This number represents the number of credit
inquiries made on your credit within a 6-month period. This
indicates a consumer is trying to obtain new credit and perhaps too
often. There is no penalty for inquiring on your own credit score.
How does Your Loan Officer View Your Score?
If you are considering a home purchase, make every effort to increase
your credit score prior to visiting your loan officer. You need to be
aware of any bad reports on your credit score.
Equifax, Experian and Trans Union are the 3 major credit Reporting
Agencies. I recommend getting a report from all three agencies. I have
used www.myfico.com
and have fixed some incorrect issues on my own credit score. I recommend
at least checking your score once a year. The small amount spent to
review and perhaps improve your score will save you thousands of dollars
interest payments on you home purchase. It is well worth your time.
The Importance Of Choosing a Lender
Choosing the right lender for your mortgage needs cannot be
underestimated. You need a lender who has your best interests and can
find you the right loan product to fit your needs. I have personally
worked with Lenders for Life and highly recommend their services. Tara
Keeney is President and has your best interests in mind when choosing a
loan product. Visit Lenders For Life web site at
http://www.tarakeeney.com
Get Pre-Qualified and Better Yet Pre-Approved
Don’t waste your time looking for a home in a particular price range
if you find you cannot get approved for the amount of money you will
need to finance it. Do your homework and know the price range of the
property you can purchase. It will save you anguish and anxiety when you
do find your dream property in the Rim Country!
Lenders For life, our preferred lender at Lyons Marketing Group can
answer any questions you may have about your credit score and how you
can improve it! We can also arrange for you to be contacted by one of
their loan specialists and get pre-qualified and pre-approved easily and
with no hassle!
We respect your privacy. We know this is your personal information
and will not be distributed to anyone.
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