First Time Home Buyers on Long Island NY – 10 things you should know about your credit

By
Mortgage and Lending with The Mortgage Outlet NMLS # 36861 NMLS # 3458 & NMLS 217190

First Time Home Buyers on Long Island NY – 10 Things you should know about your credit!

 

When it comes down to buying your first home on Long Island you have the income and down payment but what about your credit.

What does your Credit Score Really Mean?

Your credit score is a number that represents your ability to pay off your debts on time. Credit scores range for 300 to 850 from the three credit bureaus. The Higher your credit scored the easier your approval process will be.

 

 

Here is how lenders look at your Credit Scores:

 Excellent Credit is 750+

Good Credit  700 to 749

Fair Credit    650 to 699

Poor Credit  580 to 649

 

 

 

Do you know how your credit can affect your interest rate?

Do you know that a one point difference in your credit score can save your thousands of dollars over the life of your mortgage?

Did you know that making small changes on a credit report and how you use your available credit lines can make a big difference in your Scores?

Alan Hayon President of Credit Advisory Group let is know the 10 things every consumer should know about credit

 

1 Paid Tax Liens can be Removed

Paid (released or satisfied) federal tax liens can be delete from a credit report and other records within 30 days.

2. Some unpaid tax liens can be deleted

Federal tax liens can also be deleted if they have balances of less than 25k with on time payments to the IRS

3. Add Authorized users to increase scores

Adding authorized uses can increase credit scores in as little as 3 weeks for FREE! No fees and no credit checks Best of all you cannot be denied.

4. Fix Inaccurate or Additional Personal Information

90% of Credit reports have additional personal information that is either inaccurate or dated. We have seen scenarios with 6 different names, 2 social security numbers and several addresses. These items can be updated pretty quickly while working on other credit related issues.

 5. Add Secured Cards

Adding secured cards can help improve the credit profile and ultimately help a borrower get a loan approval. This needs to be structured a certain way but is extremely effective within a couple of months.

6. Keep Balances Below 30% of Available Credit

Credit card balances should be below 30% of credit all the time. If you need more credit, get more trade lines, (lender like to see 3-5 trade lines and would like them to be at least 24 months old)

 7. Consolidate Student loans

If Student loans are in default, they can be consolidated and transfer to the U. S. Department of Education. This will make a huge difference in score and overall approval strength.

8. Put Burden of Proof Back on the Creditor

Collections and charge-off are deleted at roughly 70% They generally do not have the documentation to support the account properly and Alan’s systems puts the burden of proof back on the creditor

9. Limit credit inquires

You should only have 7 inquires a year. Anything more than that can affect your score. When credit is run request a copy of your credit report

10. Setup Automatic Bill Pay

If you’re not good at paying bills on time on a monthly basis, set up direct withdrawals of the fixed payment account. Every creditor offers this option and it can turn a terrible payer into a perfect credit consumer for the rest of their lives.

Hopefully this information can help improve your credit and eventually help you get the loan needed for your next purchase or refinance

 

 We at THE MORTGAGE OUTLET pride ourselves on providing honest information so that all borrowers can make a decision as to what is best for your unique financial situation. See what our past clients have to say about the service we provide through their testimonials

We are ready to answer all of your questions so do not hesitate to call us at 631 589 3600 or email me at  david.bailey@themortgageoutlet.org

 

For a Free Pre-Qualification Click here

Types of loans we process are:

First Time Home Buyers

FHA Home Purchase Loans

VA Home Purchase Loans

Conventional Home Purchase Loans

3% Down Payment Home Purchase Loans

High Balance Home Purchase Loans

Jumbo Home Purchase Loans

 

#TheMortgageOutlet # FirstTimeHomeBuyers #HomePurchase #Refinance # Credit Scores 

Comments (1)

Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

A great title for SEO and I am sure you will get a bunch of clicks!

Oct 14, 2016 12:27 AM
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

This is good information for potential borrowers.  Well presented, easy to understand.

Jun 29, 2020 05:47 AM

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