Karen J. Church, of RE/MAX Integrity in Eugene, Oregon presents Part 5: How Does the Underwriter View My Credit Score?

Karen Church, your "Go To" gal at RE/MAX Integrity at www.eugenehomesgal.com discusses the question of "How Does the Underwriter View My Credit Score?"

If you are considering a home purchase, it is in your best interest to make every effort to increase your credit score; especially if you know you have issues you should be dealing with.  It is often the case that people are not aware of bad marks on their credit record until they apply for financing for a major purchase such as a home or a car.

As part of the loan process a credit report is run.  You can take advantage of the opportunity to get a free credit report from each of the three main CRAs: Equifax, Experian and TransUnion. As a sidebar, you can choose to get the free report for all three bureaus at the same time, so you are aware of what information each bureau has collected on you. Another option is to pull your credit report from one agency and reserve the right to get your free reports from the other two CRAs as you work on improving your credit standing.

It is best to have the full overview up front. Different CRAs have different methods of calculating these scores, and may also have different information contained within their findings. If additional reports are needed within a 12 month period from any of the three CRAs, the cost is minimal compared to the potential savings that can be realized by an improved credit score. If you pull your own credit report it will not affect your own score as an inquiry.

The underwriter who is making the decision as to whether or not you should get the loan you are asking for will generally look at the scores generated from all three CRAs. Typically the score will not be the same from all three reports. The underwriter will consider the middle score as a barometer.

If you need guidance in beginning this course, please feel free to call me.  I would be happy to refer you to a lender that can help guide you through this process and even assist you in the "how to's" of raising that credit score.

Stay tuned for Part 6:  Disputing Errors On the Credit Report.