Currently viewing the tag: "credit score"
Taking it, giving it, extra…these are common types of credit that most of us don’t mind encountering. Yet there’s another type that follows us everywhere that requires a lot of attention – and makes a lot of people nervous: Our personal credit scores. With real estate and mortgage financing making news for several years straight and the widespread effects they’ve had on the economy, credit is getting more attention than ever before. Important things to know?
You’ve read it on the web, seen it on TV and heard on the radio. Quite possibly, you’ve felt the results of it in your own life. Credit. A lack of credit, negative credit and positive credit. Credit, credit, credit and more credit. It’s everywhere. Know your credit score, know how to improve your credit or keep your credit in good standing. In spite of all of the advertizing, I believe there still isn’t enough accurate credit education available to consumers today. I know there’s a lot of confusion about what to do and what not to do.
This post is not about those with marginal credit. While credit improvement is absolutely necessary if you have negative credit, and I will offer insight about that, this post is geared toward the average credit borrower. Those consumers whose credit score currently ranks somewhere between 640-720. There are some major benefits in the world of mortgage banking and getting a mortgage in Minnesota today if you’re willing to do a little work on your credit score.
Knowledge about your credit can make an amazing difference in your monthly expenses and especially in the home loan options available to you today. While your score may be “good enough” for a mortgage or whatever it is you desire, improving it could save you a ton of money over the long term. Ask questions, get advice and listen. Your credit is key! We’re here to help!
As I take a large number of loan applications on a weekly basis and I teach First Time Home Buyers in our monthly Free First Time Home Buyer Class, there is a theme of misunderstanding and a belief that credit score is the only thing that matters. While that may have been the case in the past, it most certainly is not the case today.
Home mortgage rates are low due in part to lenders ability to have insurance on a loan. People think mortgage insurance does “nothing” for them and in reality, it does something great. It allows lenders to keep their rates low because they some of their risk is insured.
Whether you’re a first time home buyer or a home buyer who owns a home now or has in the past, your credit will impact what mortgage loan terms you are offered today and some simple things can take you from a, “not yet” to a simple yes, bring you into qualifying for programs you otherwise wouldn’t, or could save you .25-.50% in interest over a 30-year term. Yes folks, today, credit matters in a way it hasn’t in the past. If you pay attention, you can save thousands of dollars and maybe even a serious headache or two.
I never want someone to discount themselves due to credit score alone, but it is a very important part of today’s mortgage lending environment and credit score is something everyone should be in tune to before they jump into the home buying process. I preach, every month in our first time home buyer class that even if you’re looking to buy a home a year from now, checking your credit out today is the best first step.
Thank you to this month’s first time home buyer class attendees. We held our monthly first time home buyer class Thursday and as usual, those who attended came in with a host of questions that are typical of the first time home buyer in Minnesota. Here are a few of the questions and answers from this week’s class:
You’re submitted your application and supporting documentation – what’s the next step?
It’s time to talk details now. You’ve supplied everything you needed to in order to get the process started. Credit has been reviewed, taxes, paycheck stubs and bank statements have been sent in and your pre-qualification is validated. Now, here’s where the education really starts!
It’s time for a sit-down, in my in my book, this is the most important meeting you need to have before buying a home. It should be face-to-face, but can be handled over the phone if necessary.
Watch this video for information on the upcoming First Time Home Buyer Class
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