credit report: See your credit risk based on your credit score
- 01/27/23 11:01 AM
See your credit risk based on your credit scoreMinneapolis, MN: We all have credit scores, but do you know what your credit score tells creditors? It tells us your credit risk, and likelihood of the money not being paid back.
Of course a high credit score is no guarantee of being paid back, just like a bad credit low scores are not a guarantee of default, but creditors have plenty of historical data to give us an idea.
Most lending is based off what is know as 'risk based pricing', which simply means the lower your credit score, the higher risk of default, … (1 comments)
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credit report: Will forbearance hurt my credit score?
- 04/28/20 08:40 AM
Many people are struggling these days. Mortgage forbearance (pausing payments) may seem like the answer.
One of the biggest questions people are asking is, will forbearance hurt my credit score? The answer is both no and yes.
Per the CARE ACT, lenders are not allowed to report any paused (missed) payments as a late payment on the credit report, so technically no, it shouldnt effect your credit score.
BUT, the word forbearance WILL show up as a comment under your mortgage (I've seen it already). Lenders will know, and will be extremely reluctant to lend to you in the near future.
Long standing underwriting guidelines … (2 comments)
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credit report: Boosted Credit Scores WON'T Help for a Mortgage
- 12/09/19 08:52 AM
Have you seen the advertising by one of the big credit bureau's on how you can boost your credit score. Sounds great, but it appears it isn't going to help anyone get a mortgage loan as much as you might think.
Experian recently create an offer where you can self-report tradelines, such as utilized, cell phone, etc, to “boost” your credit score. As a mortgage lender, we are now seeing these reports come through, so we wanted to share with you how Fannie Mae and Freddie Mac deal with theses self reported trade lines, and how lenders will handle them.
On your credit report, lenders … (0 comments)
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credit report: Credit Report Inquiries, what is the real story?
- 11/29/18 12:26 PM
Credit report inquiries, What is the real story? Minneapolis, MN: As a Mortgage Loan Officer, I’ve pulled and reviewed a lot of credit reports in my day. I’ve also spent an incredible amount of time debunking the irrational fear so many people have about credit report inquiries.
This one sentence is all most people need to know.
STOP worrying about it.
For the vast majority of the people, the vast majority of the time, you should never ever give a second thought to an inquiry on your credit report. It just isn’t what people think.
So What Is A … (1 comments)
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credit report: Why a credit freeze can cause havoc getting a mortgage loan
- 09/25/17 10:57 AM
With the latest hack of personal information from Equifax, one of the big three credit bureaus, the topic of freezing your credit report to prevent identity theft is back in the news.
Having a credit freeze on while getting a mortgage loan can cause huge headaches.
A credit report freeze, does exactly as the name implies. It freezes your credit report so that no one can access or view the file until you unfreeze, or temporarily lift the freeze on your credit report. A credit report freeze prevents many types of fraud, especially the opening of new accounts in your name, but DOES … (2 comments)
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credit report: How long does credit repair take?
- 10/18/16 03:30 AM
How long does credit repair take?
Minneapolis, MN: As a mortgage loan officer, how long does credit repair take is a question I receive multiple times a week. The fast answer is that it depends.
No two credit profiles are the same, therefore for one person, it can be pretty quick, while the next person, it can take a significant amount of time. So a generic how long does credit repair take answer is impossible.
What is pulling down credit? Bankruptcies and foreclosures, collection items, judgements, incorrect items, max'd out credit cards, or just a slow payment history? All of these effect credit differently.
Paying … (3 comments)
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credit report: Why free credit report scores are not accurate
- 07/06/16 06:02 AM
Why free credit report scores are not accurate
Minneapolis, MN: As a mortgage loan officer, every single day, someone tells me their credit score they received from Credit Karma, some "free credit report" web site, their Discover Card statement, or even directly from the actual credit reporting agency.
Everyday, I tell them that is NOT their correct mortgage credit score.
We jokingly call those score your "Fake 'O' Score" - (joke for FICO score)
Why isn't my credit score my credit score?
It is actually rather simple. There are multiple credit score models, and the models vary by what you are doing.
When you apply for a … (2 comments)
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credit report: Top credit report move that will wreck your mortgage approval
- 07/10/14 08:14 AM
Top credit report move that will wreck your mortgage approval Getting a mortgage loan these days is overly complicated, and annoyingly paperwork intensive. This is simply a response to the market collapse that started a few years ago, when it seemed like everyone could get a loan.
If your credit report isn't perfect, a super common "trick" that credit repair companies and consumers try is to dispute credit accounts.
While disputing incorrect credit accounts is OK, it IS NOT OK right before applying for a mortgage Disputing a charge, balance, payment history, or any aspect of the credit obligation places the … (1 comments)
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credit report: Paying off old collection accounts. Good or bad idea?
- 12/26/12 10:32 PM
Minneapolis, MN: Sometimes life happens. Good people end up with bad credit. But for most, bad credit is fixable with a little time, effort, and knowledge. Credit decisions for just about anything, car loans, credit cards, home mortgage loans all depend on your credit score. We all know having a higher score means not only getting the credit, but at lower interest rates.
The biggest item people need to understand is that a huge portion of their credit score is based recent information versus old information. A 30-day late payment on a car loan from 5-years ago DOES show up on your credit … (2 comments)
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credit report: Do You Qualify for a Mortgage?
- 09/03/12 12:19 AM
Do You Qualify for a Mortgage?
Minneapolis, MN: Every year, millions of potential new home owners ask the question, "can I qualify for a mortgage?" It’s a scary question for many people, but getting the answer isn't anywhere as hard or difficult as people think. First, ask yourself some of these basic questions, then contact a local licensed non-bank lender and fill out an application. There are no obligations to let a lender review your situation.
Can I afford the payment? This is obviously a major questions. I always tell people if they have been comfortably making a rent payment … (1 comments)
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credit report: Don't worry about someone pulling credit when shopping for a mortgage
- 09/29/11 04:47 AM
Shopping for a mortgage loan? The average person DOESN'T need to worry about inquiries on your credit report
We've all heard it before. Having someone pull your credit will reduce your credit score. Sadly, many people end up making some poor decisions based on half truths, and bad information.
The fear of reduced credit scores with the occasional pull from a creditor is the most annoying, misleading, and misunderstood thing I hear every week in the mortgage business. If you are worried about "inquiries on your report", this isn't the concern most people think it is.
What to know about … (2 comments)
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See your credit risk based on your credit scoreMinneapolis, MN: We all have credit scores, but do you know what your credit score tells creditors? It tells us your credit risk, and likelihood of the money not being paid back. 
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