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About Your Credit
Buying a Home
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Information You Should Know About Your Credit
Your credit score is one of the most important factors in qualifying for any new loan. Below is an overview or your credit score and what it means to you.
Your credit score is one of the most important factors in qualifying for any new loan. Below is an overview or your credit score and what it means to you.
What Determines Your Credit Score
No one person or factor determines your credit score. Your score is determined by a credit reporting agency or credit bureau. The credit bureau gathers and maintains information about your credit history. Information on your payment history is gathered from various places and people that you do business with, such as your bank or credit union, your landlord, credit card company, and others. This information is then compiled into your credit report. Based on all of the information gathered, a score is then generated. Read below for how your score is calculated.
No one person or factor determines your credit score. Your score is determined by a credit reporting agency or credit bureau. The credit bureau gathers and maintains information about your credit history. Information on your payment history is gathered from various places and people that you do business with, such as your bank or credit union, your landlord, credit card company, and others. This information is then compiled into your credit report. Based on all of the information gathered, a score is then generated. Read below for how your score is calculated.
Information Found On Your Credit Report
Your credit report is a summary of your credit history. It includes all of your outstanding loans and credit card accounts with specific account information. Your report will show the date the account was opened, the credit limit or beginning loan amount, the outstanding balance, any late payments and the amount of your monthly payment. It will also include public records such as judgments or liens against you or your property, as well as any outstanding debts that have gone into collections. Your report can also show any past bankruptcies or foreclosures.
Your credit report is a summary of your credit history. It includes all of your outstanding loans and credit card accounts with specific account information. Your report will show the date the account was opened, the credit limit or beginning loan amount, the outstanding balance, any late payments and the amount of your monthly payment. It will also include public records such as judgments or liens against you or your property, as well as any outstanding debts that have gone into collections. Your report can also show any past bankruptcies or foreclosures.
What Does A Good Score Mean To You?
A good or higher credit score means that you are a lower risk borrower to lenders. Being a lower risk borrower will may make you eligible for a lower interest rate which ultimately means lower monthly payments. If you have a lower credit score you are a greater risk borrower. Unfortunately this means you will typically find yourself with a higher interest rate and a higher monthly payment. It's possible that you can even be denied credit if your credit is too low.
It is very important that you review your credit report. You should check it at least once a year for any inaccuracies. Many people are unaware that your can obtain a copy of your credit report for free from all three of the major credit reporting agencies.
A good or higher credit score means that you are a lower risk borrower to lenders. Being a lower risk borrower will may make you eligible for a lower interest rate which ultimately means lower monthly payments. If you have a lower credit score you are a greater risk borrower. Unfortunately this means you will typically find yourself with a higher interest rate and a higher monthly payment. It's possible that you can even be denied credit if your credit is too low.
It is very important that you review your credit report. You should check it at least once a year for any inaccuracies. Many people are unaware that your can obtain a copy of your credit report for free from all three of the major credit reporting agencies.
Do You Still Have Options With Less Then Perfect Credit*?
Yes. Our FHA loan options are ideal for the borrower with less than perfect credit*. FHA loans are also a great option for a buyer with perfect credit but little money down. This is why our FHA loan products are the most popular products that we offer. Our FHA loan products are also great for a homeowner looking to refinance. If you find out that your credit or income is too low for a conventional loan, our FHA products might be the perfect fit for you. You can still feel secure knowing that you will get low rates with one of our FHA products.
Even with the options available to lower credit borrowers, it's still important to do everything possible to maintain a good credit history. If you keep your credit score high you will have more options and have a better chance to obtain available credit.
* Subject to limitations, this does not constitute or otherwise imply an offer of credit.
Yes. Our FHA loan options are ideal for the borrower with less than perfect credit*. FHA loans are also a great option for a buyer with perfect credit but little money down. This is why our FHA loan products are the most popular products that we offer. Our FHA loan products are also great for a homeowner looking to refinance. If you find out that your credit or income is too low for a conventional loan, our FHA products might be the perfect fit for you. You can still feel secure knowing that you will get low rates with one of our FHA products.
Even with the options available to lower credit borrowers, it's still important to do everything possible to maintain a good credit history. If you keep your credit score high you will have more options and have a better chance to obtain available credit.
* Subject to limitations, this does not constitute or otherwise imply an offer of credit.
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They were always available to answer questions. Extremely helpful and knowledgeable. Flexible with the meeting times and drove the distance to meet me. |
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(Willoughby, OH)
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