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| The Credit Report |
| 9 Things You Must Know to Get Approved |
Know Your Credit Score: Your credit score is an essential component of having
your loan approved. It determines loan programs for which you are potentially
qualified. The scores range from 300 to 900 and the higher the score the better
chance you have of being approved. Most lenders like to see scores in the high
600 to 700's. If you wish to get a per-approval - call us today and we will check out
your personal score.
Always Pay Your Bills & Loans On Time: This is not to insult your
commonsense, but to emphasize how vital on time payments are to your credit
score. Not making payments on time always decreases your score. In fact his
factor has the biggest impact on your score. It makes up about 35% of your score.
Limit How Much You Owe: Having credit accounts and owing money does not
mean you are a high risk borrower. But owing a lot of money on numerous
accounts may suggest that your are over extended. Loans are approved largely
on the percentage of your income used to pay off debt and financial liabilities.
You can get approved for a larger mortgage and there fore a more expensive
home if you have lower credit card, automobile, student loan and other payments.
This factor makes up about 30% of your score.
Avoid Collections: Have you ever disputed a bill before? Most of us have.
Industry leaders know that it is almost always better to pay a disputed bill while
continuing to work on that issue, than to have a collection filed against you. A
collections issue will lead to a reduced credit score even if you have paid the
account after it has gone to a collector. Avoid collections at all cost.
Limit Your Credit Enquiries: People today tend to have more credit and to shop
for credit more frequently. Although it is true that lenders want to see revolving
and installment credit on your bureau, too many enquires cn lower your credit
score. Always ensure, when you are trying to open a credit card or going into a
Bank to discuss a loan or Line of Credit , that you ask if they are going to run a
credit check.
Do Not Open New Accounts Or Purchase Large Ticket Items In The Months
Preceding Your Home Purchase: As stated, opening new accounts requires the
pulling of credit reports and this can reduce your score. Also do not purchase
large items such as furniture, automobiles, snowmobiles etc. before you purchase
your new home as the debt load may be too high for you to get the mortgage
approval. Some of these items are on the "Don't pay a cent event" program. Your
are still responsible for the monthly debt load.
Do Not Close Unused Accounts Until The Purchase Has Finalized: One of the
major factors in developing a good score is the capacity to borrow. The difference
between the limit you are allowed and the actual balance you have on your
statement. This difference helps to calculate your credit score. Closing accounts
will decrease the total amount you can borrow but will leave you with that debt
until paid. This is critical!
Don't Try To Hide Your Past Financial Difficulties: One of the most important
services that a good Mortgage Planning Specialist offers is helping you overcome
financial difficulties that may hinder your ability to have your loan approved. The
Mortgage Planning Specialist is on your side!
your loan approved. It determines loan programs for which you are potentially
qualified. The scores range from 300 to 900 and the higher the score the better
chance you have of being approved. Most lenders like to see scores in the high
600 to 700's. If you wish to get a per-approval - call us today and we will check out
your personal score.
Always Pay Your Bills & Loans On Time: This is not to insult your
commonsense, but to emphasize how vital on time payments are to your credit
score. Not making payments on time always decreases your score. In fact his
factor has the biggest impact on your score. It makes up about 35% of your score.
Limit How Much You Owe: Having credit accounts and owing money does not
mean you are a high risk borrower. But owing a lot of money on numerous
accounts may suggest that your are over extended. Loans are approved largely
on the percentage of your income used to pay off debt and financial liabilities.
You can get approved for a larger mortgage and there fore a more expensive
home if you have lower credit card, automobile, student loan and other payments.
This factor makes up about 30% of your score.
Avoid Collections: Have you ever disputed a bill before? Most of us have.
Industry leaders know that it is almost always better to pay a disputed bill while
continuing to work on that issue, than to have a collection filed against you. A
collections issue will lead to a reduced credit score even if you have paid the
account after it has gone to a collector. Avoid collections at all cost.
Limit Your Credit Enquiries: People today tend to have more credit and to shop
for credit more frequently. Although it is true that lenders want to see revolving
and installment credit on your bureau, too many enquires cn lower your credit
score. Always ensure, when you are trying to open a credit card or going into a
Bank to discuss a loan or Line of Credit , that you ask if they are going to run a
credit check.
Do Not Open New Accounts Or Purchase Large Ticket Items In The Months
Preceding Your Home Purchase: As stated, opening new accounts requires the
pulling of credit reports and this can reduce your score. Also do not purchase
large items such as furniture, automobiles, snowmobiles etc. before you purchase
your new home as the debt load may be too high for you to get the mortgage
approval. Some of these items are on the "Don't pay a cent event" program. Your
are still responsible for the monthly debt load.
Do Not Close Unused Accounts Until The Purchase Has Finalized: One of the
major factors in developing a good score is the capacity to borrow. The difference
between the limit you are allowed and the actual balance you have on your
statement. This difference helps to calculate your credit score. Closing accounts
will decrease the total amount you can borrow but will leave you with that debt
until paid. This is critical!
Don't Try To Hide Your Past Financial Difficulties: One of the most important
services that a good Mortgage Planning Specialist offers is helping you overcome
financial difficulties that may hinder your ability to have your loan approved. The
Mortgage Planning Specialist is on your side!
CONNECT2MORTGAGES INC.