Apr 232013

Is Your Credit in Order?

Creditors use your credit report and credit score to determine to grant you a mortgage and what interest rate to charge you. It is critical that you get a copy of your credit reports and credit scores a few months before making such a major purchase.

Your credit rating may be the single most important piece of financial information you have to obtain a mortgage at the best interest rate. Credit Scores have names, such as: FICO and BEACON, depending on the credit reporting agency.

Order your Free Credit Reports from: annualcreditreport.com , you have to pay to obtain your credit scores. Arm yourself with the same information that lenders, bank managers, mortgage specialties and mortgage brokers will use to determine if you qualify to be approved and at what interest rate.

Check your report thoroughly to make sure there is no negative or incorrect information that could hurt your chances of getting a favorable mortgage.

Spend the time to get things in order:

  1. Catch up on any overdue payments
  2. Unpaid collections reporting on the credit report
  3. Outstanding balances still showing on the credit report, although you have paid in full
  4. Total debt showing o on the credit report, such as: credit cards, car loans, personal loans
  5. Unsettled judgements

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