purchasing a home: Credit Scoring Part V: How Does a Low Credit Score Affect ME
- 01/17/11 06:05 AM
Let me give you a short list of how much low credit scores can cost when it comes to a home loan: 1. You may never own a home, again, or you will have to wait, maybe for years This is a very real possibility whether your low credit scores are because of the recent economic downturn or because you have always had low scores. Lenders have continued to tighten up on lending guidelines and they probably will tighten up even more. 2. You will pay higher interest rates or fees Fannie Mae and Freddie Mac implemented a "Loan Level Price … (3 comments)
purchasing a home: Credit Scoring Part lll: Dealing with Challenges
- 01/13/11 11:44 AM
There are many reasons why someone has low credit scores. Many times, it is because a person lacks discipline or structure in their life. Because of this, they do not pay their bills on time or curb their spending. Other people have challenges come into their life whether it is a loss of a job, medical problems, divorce or just situations that totally catch them by surprise. ( I had a client who was told her by insurance company that they would pay for her surgery and after she had the surgery they refused to pay, leaving her more than $30,000.00 in debt!!) … (0 comments)
purchasing a home: Credit Scoring Part II: The Five Factors of Credit Scores
- 01/11/11 09:36 AM
There are five factors that make up the credit score. They are listed below in order of importance and impact to a persons credit score: Payment History: 35% impact.Paying bills on time and in full has a positive impact. Late payments ("late" means 30 days or more), judgments, collections and charge-offs have a negative impact. Negative items that have occurred in the past two years have a greater impact than older items. Outstanding Credit Balances: 30% impact.This is the ratio between the outstanding balance and the credit limit or account limit. To receive the highest credit scores, balances should be kept below … (2 comments)
purchasing a home: Credit Scores- Good Credit Translates into Lower Rates for you and your clients!
- 01/10/11 06:59 AM
Credit scoring has a huge impact on a person's ability to purchase a home. Your credit score will mean the diference between a great interest rate and the home you have been looking for, or whether you will qualify at all. That is why it is so important that people know and understand credit scoring and what it takes to to get the best credit scores possible. Most people do not know what their credit scores are and that is why it is so important for a prospective home buyer to meet with a loan officer and go over their credit report. … (0 comments)
Let me give you a short list of how much low credit scores can cost when it comes to a home loan:
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