Buyers - Know Your Credit Score

By
Real Estate Agent with Maximum One Realty Greater Atlanta

As so many prospective home buyers are learning, the market remains favorable for finding that dream home.  Inventory is abundant, sellers are willing to negotiate and interest rates are low.  Being considered loan worthy, however, is not as easy as it was once upon a time.  Besides a stable employment history, lenders are relying a great deal on credit score, and knowing in advance what your three-digit score is, can greatly improve your chances of being approved for a loan.

The first step is to become familiar with how credit scores work and what factors influence your credit score.  www.MyFico.com provides this information.  Next, visit www.AnnualCreditReport.com and pull a free copy of your credit history as reported by Equifax, Experian and TransUnion.  Verify that the information is correct, and contact any companies that have reported false information and ask them to remove it.  Also, look for the portion of available credit that you are currently using.  Your balances should be less that 50 percent of your credit line.  The best scores are obtained by those who use less than 30 percent of the maximum.  on time payments and credit use make up 65 percent of your credit score.  Make adjustments where needed!

With finances in order, contact a good local lender - get recommendations from trusted sources!   He or she will be able to answer your questions regarding the financing process, and will even give you tips to improve that credit score if needed.  Once you have a preapproval letter in hand, find a knowledgable realtor to guide you into the home of your dreams!   

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Rainmaker
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Kathy Sheehan
Movement Mortgage 770-634-4021 - Atlanta, GA
Branch Manager

Anne, this is great advice! Buyer's should know where they stand before they start the process.  One point, the scores consumers see on these websites, may, or may not be in line with the score we pull for a mortgage application.  Talking with a licensed mortgage professional will be the best advice.

Feb 15, 2012 09:18 AM #1
Rainmaker
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Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Not just your score to score, get a set of home keys and deed with your name on it spelled right. What is on your credit score that is wrong, not even you because you don't have this, this and that card or account that are in arrears. Fixing credit reports and making them accurate is a take a number, have a seat process. Where keep checking but despite the resolution that everyone says don't worry, all fixed, it is not. Still on your report like a stage four cancer growing.

Feb 15, 2012 09:19 AM #2
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Rainmaker
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Anne Ortiz

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