YOUR CREDIT REPORT - how it works

Your credit report is a running tally (if you will) of any open or paid accounts that are currently open under your social security number.   Your credit score is determined by the following:

Payment History (approximately 35% of your score)
whether you’ve paid past credit accounts on time.

Amounts Owed (approximately 30%)
Owing a lot of money on numerous accounts can suggest that you are financially overextended

Length of Credit History (approximately 15%)
In general, a longer credit history will increase your credit score because it shows that you can responsibly manage your available credit over time.

New Credit (approximately 10%)
Opening several credit accounts in a short period of time can represent greater risk

Types of Credit in Use (approximately 10%)
Your credit mix usually won’t be a key factor in determining your score, but it will be more important if your credit report doesn’t have much other information on which to base a score.

*NOTE* You are entitled to one free "tri-merge" report per year.  It's good idea to review your report to check for errors and omissions so that when you're ready to purchase a home you can be confident that you are ready.

ALSO - there are ways to improve your score - and if you check with a lender, often they can assist you free of charge.

For questions - contact me @ MortgageRay@hotmail.com

Getting started - Prequalification VS Preapproval

Are you looking to purchase a home?  Are you a homeowner looking to refinance and take advantage of today's low interest rates?  It's important to be prepared when shopping for a mortgage.  Gone are the days when you can call a lender with an estimate of your personal financial information and receive a prequalification.  In order to be truly confident that your application will be approved you should be ready to give your lender the following information - and be exact on the numbers - so that your loan can be preapproved. 

1. Name, date of birth and social security number of all borrowers
2. Address for the past two years for all borrowers
3. Employer - with address, contact number and monthly salary - for the past two years for all borrowers
4. List of all checking, savings, investment and retirement accounts - with institution name, account numbers and balance
5. List of all properties (if any) currently owned - with estimated value, mortgage balance owed, monthly mortgage payment and insurance/tax escrows

With this information, your lender can  submit your application for preapproval and you can be confident that once you locate your dream home you will be ready to proceed.

For questions, contact me @ mortgageray@hotmail.com.