NOW is the Perfect Time to Review Your Credit

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
https://activerain.com/droplet/5hcP

 

NOW is the Perfect Time to Review Your Credit

 

Below you'll find a weather report shared for the Chicagoland area just  recently ... 

 

Rain and thunderstorms are expected today before Chicago temperatures plunge from the mid-40's to single digits ...

 

It's well known that Chicagoland weather is notoriously fickle, but our area residents are a hardy bunch.  Most won't even blink upon reading a weather prediction like the above.  We're pretty used to the craziness ...
 
The recent polar vortex freeze that descended upon the Chicagoland area is a 
good example of this.  After suffering sub-zero winter temps for days, the local weather quickly changed to an upper 40's "heatwave" that saw some people outdoors celebrating on bikes and in shorts.  
 
Yep, we take it all in stride.  We plan ahead, make preparations, hunker down, and keep busy inside when our Chicagoland weather turns less than friendly. 
 
During this latest crazy weather pattern, a young newlywed couple in the very preliminary stages of their mortgage process asked me to run their credit report.  We had spoken a couple of times prior to their making this request, but nothing "official" had taken place up to this point. 
 
During our initial conversations, they'd talked about their finances and credit histories with me.  Then the credit report came back and well, let's just say there were a few discrepancies found between the reported reality and their earlier descriptions.
 
Now I don't think there was any attempt on their part to mislead me or to misrepresent the facts, their credit past, or financial standing.  I just don't think either of them fully understood the credit history of the other prior to their being together ... or had a firm grasp on their current credit status or financial standing as a couple.
 
We have some work ahead of us in order for them to secure financing.  But I'm happy to report that each has rolled-up their sleeves and is focusing on improving their credit scores and financial standing as I write this.
 
Unfortunately, this predicament isn't all that uncommon.  When there are couples or multiple borrowers involved in a mortgage application, it occurs with some frequency.  Mortgage application and credit report pulls sometimes turn into "illuminating" experiences.  Neither is a good time for surprises to take place.
 
And this brings me back full-circle to my intro regarding our recent weather challenges here in Chicagoland ...  
 
For those thinking of buying a Chicagoland home soon or sometime in the future,  bad weather that forces us inside can provide the time and perfect opportunity to perform a credit check.  
 
Credit checks are what I've been recommending to everyone as of late.  
 
An annual credit check is very wise.  And the importance of taking advantage of this opportunity ... and doing so well in advance of starting the home buying process ... was perfectly proven by my young clients.
 
Had they performed a credit check earlier it would have been extremely beneficial for them.  They could have started their credit repair and credit improvement long ago, and already raised their credit scores.  Higher credit scores equate to saving money.  
 
But because this couple waited to check their credit and seek info and guidance, they just now learned the facts pertaining to their credit scores and standing.  They just now are beginning to pay down their debt more advantageously and strategically.
 
And I cannot emphasize this enough:  If this young couple had run a credit check previously, they would currently hold a much clearer and truer picture of each other's credit history.  Something of great importance for a great many reasons.  
 
 
It's easy to run a no-cost credit check.  It can be performed at:  www.annualcredit.com.  
 
Each of us is entitled to this under the current federal credit laws.  
 
Federal law allows you to get a free  copy of your credit report every 12 months from each credit reporting company.  
 
 
 
Those companies are:
     P.O. Box 2002, Allen, TX  75013
       888.397.3742
      P.O. Box 2000, Chester, PA  19016
     800.916.8800
     P.O. Box 740241, Atlanta, GA   30374
     800.685.1111
 
Running this free credit check annually will help you: 
  1. Discover if errors exist on your credit report 
  2. Detect identity theft or credit card fraud that may have taken place 
  3. Monitor your financial status 
  4. Keep your credit reporting information accurate 
  5. Rebuild your credit 
  6. Improve upon savings

 

If you're considering the purchase of your first home, here are some additional helpful "homebuyer-to-be" tips:
 
  • Review ALL of your open credit card accounts often 
  • Compare their CURRENT balance to the AVAILABLE credit limit  (One of the biggest mistakes I see prospective buyers make concerns credit card limits Too many allow balances to exceed credit card limits ... or almost as bad, allow balances to stack-up right below their limit)
  • Borrowers should strive for balances at (maximum) 47% of their available credit limit to maximize credit scores
  • DO NOT CLOSE OUT any credit cards prior to applying for a mortgage.  Cards need to remain open with the lowest balances possible VS their limit (as mentioned above).  
  • The longer an account is open and has a reported account history, the more "weight" is given to that account.  Newer credit holds less "weight" because it has a shorter credit history reported
  • If you think you need info and help regarding your credit, contact a Loan Officer/Mortgage OriginatorAgain, do this well in advance of hoping to buy (or refinance).  

 

Most Originators provide this advice free of charge, so why wait? 
 
The benefits of seeking this help go way beyond those found while seeking and securing a Mortgage.  Higher credit scores can lead to lower interest rates when borrowing money on homes, cars, and other types of loans.  They can also improve the homeowner's insurance policy (and quoted rates) available to you for your purchase.
 
If challenging and blustery weather conditions have you inside for the day or even a few hours, take advantage of that time.  Head to:  www.annualcreditreport.com or one of the 3 main credit bureaus to check your credit.  You'll be better off for it ...
 
 
 
* Are you hoping to buy or refinance a home or investment property in New Lenox, Will County, or elsewhere in the Chicagoland, IL/Wisconsin area? 

Contact Me! 
 
I'll put my 40+ years of mortgage experience and expertise to work answering your questions and fulfilling your financing needs.

I'm easily found at: 
 
 
Gene Mundt
 
Mortgage Originator - NMLS #217987 - IL Lic. #031.0006220 - WI Licensed
 
 
American Portfolio Mortgage Corp.
 
NMLS #175656
 
 
 
Direct: 815.524.2280
Cell/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! 

 

Email Me .. to be added to my Mortgage & Real Estate Newsletter

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Sally K. & David L. Hanson 02/08/2019 01:58 PM
Topic:
Lending / Financial
Location:
Illinois Will County New Lenox
Groups:
Mortgages
Chicago Area Real Estate BUZZ!
Advice for Buyers
Bananatude
WillCounty
Tags:
credit
mortgage approval
credit reports
mortgage application
credit review
talk to a lender
chicagoland weather
credit advice from mortgage lenders
home buying advice and tips
preparation to buy and finance a home
annual credit checks

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Ambassador
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Gene This is wonderful information and has been

FEATURED in BANANATUDE

bananatude

Feb 08, 2019 11:55 AM #1
Rainmaker
2,817,675
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Gene... loved the tie in to the Chicago weather! Here in Charlotte it's in the 70's... much rather be outside than checking my credit. Oh wait... already did that and I know it's stellar!

Feb 08, 2019 12:14 PM #2
Ambassador
3,668,162
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gene I had this conversation with a prospective Borrower today.  They do not want to purchase until Summer, but now is the time to look at credit to make sure there is nothing we need to fix.

Feb 08, 2019 03:47 PM #3
Rainmaker
1,754,649
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good evening Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi -  I have have head of some interesting discoveries between couples.  It has happened with people I know.

Feb 08, 2019 06:59 PM #4
Rainmaker
5,076,608
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is excellent advice to share.

Have an outstanding weekend.

Feb 09, 2019 03:52 AM #5
Rainmaker
4,755,478
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Anyone considering making any type of large purchase that involves financing should be aware of their credit standing.

Feb 09, 2019 06:46 AM #6
Rainmaker
3,127,732
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Gene - get out of the cold and the dark when it cones to better knowledge about one's credit worthiness. Why wait?

Feb 09, 2019 07:28 AM #7
Rainmaker
1,468,491
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Gene, checking credit regularly is important, never a good idea to be surprised when it comes time to shop for a home. You're spot on though, it's not all that uncommon. Excellent advice as always!

Feb 10, 2019 05:21 PM #8
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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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