First Stop = credit score check

Before you start house shopping, you will want to have your mortgage credit report pulled. Once you know your scores, you will know the program and interest rates you qualify for.  For instance, if your score comes in at 680, vs 720, you may have to pay an 1/8th higher rate.  At that point you would want to increase your score to the 720 in order to qualify for a better rate. An 1/8th of a percent,  over a 30 year period , on a $200,000 loan equates to $6,335.00 !

Your loan officer, should be able to counsel you on how to pick up points to achieve the score goal you are aiming for. Risk based pricing, is the term used in the industry~~~keep in mind lower scores= higher rates.

Additionally, familiarizing yourself with your credit components will allow you the opportunity to resolve conflicts and address score strengthening exercises.

helpful hints: ( 1)PAY ON TIME !! (2)  keep balances on revolving charges, less than 30% of  credit card limit (3) keep long term relationships open, charging occasionally.  (4) keep credit inquiries to a minimum.

Fact:  Your score is based solely on data contained in your credit report, and does not take into account age, gender or any personal information.

March 24, 2014 by · Leave a Comment

About Toni

We have worked togther for corporate America since 1991 and have been self-employed partners since October of 2000.

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