The Simple "Cure" that Removes Credit Mysteries

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
http://activerain.com/droplet/4YVT

 

The Simple "Cure" that Removes Credit Mysteries

 


A large number of credit card companies now offer an opportunity to their customers to see their credit scores.  Consumers receive "previews" of their credit scores via their credit card's monthly statements.

Opportunities to view or receive credit scores are available elsewhere too.  Credit Bureaus, credit monitoring sights, when applying for car loans ... all afford these opportunities to consumers.

These credit scores can serve as a measurement or "ruler" of sorts. When you know your credit score:

  • You know how well you've paid bills and obligations 
  • How much of your credit availability you've utilized (debt owed)
  • You're alerted to possible errors, identity theft, etc. taking place
  • What options you may have available to borrow
  • What financing programs may be available to you
  • How soon you may be able to buy
  • More ...    


As a Chicagoland Mortgage Originator, I think the availability of this knowledge is a huge plus.  Especially for those thinking of buying a home or borrowing money. 

But depending on where you gain your credit scores, they can vary.  Sometimes as much as 20, 30, 40 points or more.  And many consumers are unaware of this. 

It's not unusual for my clients to report having received considerably higher scores from their credit card companies versus the scores received from their Residential Mortgage Credit Report (run when applying for a mortgage and relied upon by Lenders during Underwriting).

This can be somewhat frustrating for my eager hopeful home buyers (or those refinancing) to hear and digest.  Not to mention a bit "deflating".  


But fact is:  If you want to know your actual mortgage qualifying credit scores to buy a home in the Chicagoland area, you must talk to me/a Mortgage Lender.

The topic of credit scores can be a bit intimidating to many.  There's often an air of "mystery" that surrounds them.  Several things contribute to this.  That you must reach out to a Mortgage Lender to gain the info needed, is just one.

Just knowing what a "credit inquiry" is certainly helps.  The simple explanation is:  

A credit inquiry is when a credit report is run to possibly obtain credit.  

 

There are 2 types of credit inquiries though:

     1.  Soft Inquiries:
  
     An individual viewing their own credit  
     A 3rd-party extending promotional offers

     2.  Hard Inquiries:  

     3rd-Party credit reviews

   
 (It's important to remember:  Only a Hard Inquiry can drop a consumer's credit scores.)  


It's said that "timing is everything".  That's particularly true regarding credit inquiries ...  

The timing of inquiries made can alter and affect the scores received.  But in most cases: ONE inquiry on a credit profile for a Mortgage/Bank/Credit Union credit report pull will notlower a credit score.  

I've seen identical credit scores from all 3 Credit Bureaus received when a second credit report was pulled for a potential Borrower inquiring about Mortgage Pre-qualification ... or when re-applying for a mortgage loan.   

However:  Multiple inquiries of credit for a variety of credit uses (car loans, credit cards, and mortgage loans) within a "short period" of time, will lower credit scores.


Credit, credit inquiries, credit scores can seem so darn mysterious and confusing.  But the good news for future home buyers and borrowers is:  Information, guidance, and assistance is easily and readily available.

The most reliable form of credit scoring (for mortgage purposes) is available only from a Mortgage Lender. It IS important to know and understand them ... and their accompanying strength. 

Simply, let's talk.  The conversation will be a fact-finding one.  Questions will be asked back and forth ... by each of us.  

But the more complete my understanding of your finances, credit and debt, hopes and plans ... the better I can answer your questions, guide and prepare you, and assist you with your financing needs.

This beneficial conversation can reveal:

  • Your actual (Mortgage) Credit Score
  • The most advantageous way to address debt and improve/maximize credit scores 
  • What is the Mortgage Process?
  • Down Payment requirements
  • Pros and cons of the Mortgage Options available 
  • What costs are associated with buying and financing a home?
  • What Monthly Payment can I be qualified for?
  • What Monthly Payment am I comfortable with?
  • Much more ...


Our conversation together (or your own local lender) is the right way to start on the path to home buying.  This is especially true for those hoping to become first time buyers.

Helpful Tip:  Use the time leading up to your home purchase wisely.  While still renting ... prepare and plan ahead.  The earlier or further out from the time you hope to purchase, the better.  

This is especially true if you have built no credit history, have little credit established ... or are facing credit challenges.  Time can be a valuable friend in these instances.  So is the advice and guidance you can receive from an LO.

Whether it's seeking knowledge of credit scores, gaining insight into your credit history, or receipt of  information regarding some other portion of the home buying or financing process ... a conversation is the best place to start.  

That simple conversation can "cure" and remove any mystery surrounding your credit ... and propel you towards home buying and financing success ...



    
     * Hoping to Buy or Refinance a Home in New Lenox or elsewhere in the Chicagoland area? Contact me! I'll put my 40+ years of Mortgage experience and expertise hard to work on your behalf.
     I'm easily found at:

 

Gene Mundt
 
Mortgage Originator - nmls #216987 - IL Lic. 031.0006220 - WI Licensed
 
American Portfolio Mortgage Corp.
nmls #175656
 
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281
 
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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Tony and Suzanne Marriott, Associate Brokers 01/21/2017 05:37 AM
  2. Ginger Harper 01/21/2017 05:55 PM
  3. Gabe Sanders 02/01/2017 11:51 PM
  4. Roy Kelley 03/01/2017 01:00 AM
Topic:
Lending / Financial
Location:
Illinois Will County New Lenox
Groups:
Chicago Area Real Estate BUZZ!
1st Time Buyers
Consumer Mortgage Tips
Advice for Buyers
Bananatude
Tags:
credit
credit cards
credit advice
credit scores and report
talk to a lender

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Rainer
394,686
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

Don't wait until its too late!!! Act now to review your credit report content

Jan 21, 2017 04:13 AM #23
Rainmaker
1,108,702
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Credit scores can be very confusing and problematic when trying to purchase something. I think they should stop counting credit inquiries against a credit score. Many people don't know that shopping around for a car, for example, will negatively impact your credit even if you don't buy anything. That's just a silly process.

Jan 21, 2017 05:04 AM #24
Rainmaker
2,731,908
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi "Multiple inquiries of credit for a variety of credit uses (car loans, credit cards, and mortgage loans) within a "short period" of time, will lower credit scores."

Right on target - and - re-blog!

Jan 21, 2017 05:37 AM #25
Rainmaker
795,408
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Gene, Easy to understand information for consumers to help repair their credit. Thank You!

Jan 21, 2017 06:15 AM #26
Rainer
206,969
Chris Lima
Atlantic Shores Realty Expertise - Port St Lucie, FL
Local or Global-Allow me to open doors for you.

Thanks for the great information, Gene.  I despise how complex and seemingly unfair the system is.  It used to be fairly simple, pay your bills and you are good and now it's more like.....

 

 

Jan 21, 2017 06:40 AM #27
Rainmaker
1,328,440
Mike Cooper
Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Sales Pro

Gene, great stuff. I just went to a credit seminar and the volume of credit reports available and the different ways they come up with numbers was staggering. 

Jan 21, 2017 02:21 PM #28
Rainmaker
514,627
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

This article is full of good information regarding credit. Thank you!

Jan 21, 2017 04:33 PM #29
Rainmaker
856,203
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Such a great article!   I have to share on Google.  You can definitely answer a lot of questions from consumers concerned about soft and hard credit inquiries!  Kudos!

Jan 21, 2017 06:17 PM #30
Ambassador
3,708,690
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi - have to bookmark this - and have to come back to learn a few more things from your post.

Excellent when we share this with consumers who just don't understand the credit issues and believe they are perfect!

Jan 21, 2017 10:58 PM #31
Rainmaker
817,264
Marco Giancola
Beachfront Realty - Miami Beach, FL
Realtor (305)608-1922, Miami Beach Florida

Hi Gene-very helpful and informative. I actually learned something new!

Jan 22, 2017 04:37 AM #32
Rainmaker
1,321,516
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

It is confusing Gene especially when one has CreditKarma who reports to you every 2 months only to find out they were WRONG. Deflating as you say.

Jan 22, 2017 12:38 PM #33
Rainer
387,523
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Gene,

This is a good argument for starting to work with a lender early in the game. A 1/4% difference in interest rate can be a lot of money over 30 years.

Jan 22, 2017 06:32 PM #34
Rainmaker
4,043,577
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for the excellent information, Gene.  I still don't understand why the simple act of pulling a credit score reduces said credit score.  It really has nothing to do with the individuals credit other than he may be looking to make some kind of purchase.

Jan 24, 2017 03:56 AM #35
Rainmaker
1,117,356
Jane Peters
Home Jane Realty - Los Angeles, CA
Connecting you to the L.A. real estate market

So many people are unaware of what their real credit score is. I always here "it's good" only to find out they are in the 600s. As always, you are a wonderful source for all things mortgage.

Jan 24, 2017 12:35 PM #36
Rainmaker
1,421,674
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good Morning Gene - I actually did not know some of those things and they are very helpful.

Jan 25, 2017 08:27 AM #37
Rainmaker
2,471,666
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Hello Gene. Potential buyers should begin their search with a discussion with a mortgage lender such as yourself! Enjoy your day!

Jan 30, 2017 05:09 AM #38
Rainmaker
3,286,390
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi ,

I'm so glad Gabe Sanders  re-blogged your post as I missed it. You are such a valuable source of information and this post is excellent! Well deserved featured post!

Feb 02, 2017 05:44 AM #39
Rainmaker
4,391,772
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Congratulations on your feature recognition. This is important information to share.

Feb 02, 2017 06:13 AM #40
Rainmaker
4,391,772
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Congratulations on passing the million points milestone. On to the next million!

Feb 02, 2017 06:14 AM #41
Rainmaker
800,774
Maureen Bray Portland OR Home Stager ~ Room Solutions Staging
Room Solutions Staging, Portland OR - Portland, OR
"Staging that Sells Portland Homes"

Hi Gene ~  Your post is a helpful reminder to home buyers that an excellent credit history will help greatly when trying to qualify for a mortgage for a home they want.  

At my age nearing retirement, I like having multiple credit cards not because I use all the credit, but because I love all the airline miles that add up quickly and allow me to travel to Ireland in style every year    I've had a strong credit score for years because my dad taught me early on that you should never buy anything that you can't afford to pay for.  I adjusted that slightly to using a credit card with miles,  but I make sure that I pay it off  in full every single time as soon as the bill arrives. It was a lesson that I never forgot and I'm very grateful for his advice!

BTW Congrats on becoming at AR Millionaire!!!  Well done Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

Feb 18, 2017 01:37 AM #42
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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