Beginning July 1, 2017, credit bureaus like Equifax, TransUnion, and Experian will no longer collect tax lien and civil judgement information in order to calculate credit scores – especially if the information doesn’t provide complete details on the consumer like their name or date of birth, and public records aren’t checked for updates every 90 days. According to USA Today, the change is meant to “ensure that consumer identifications in the data are accurate and current.” [Read more…]
Boosting your credit score can sometimes be no easy feat. If you find that your credit score is poor, don’t panic. With the right methods and a little patience, there are ways to make your score better.
Get a Secured Credit Card
You have borrowed some money for a Kansas City home loan, but have found that you are unable to make scheduled payments. So you put off the payments until you discover that you’re 90 days past due and the loan has become non-performing. What does it mean for you and how can you avoid it? [Read more…]
As a loan officer, you should be aware of your borrower’s needs and the best options for them when they come to you for a home loan. It’s your job to give them choices that work with their financial situation, and conforming loans will be one type of financing that you will see very often. [Read more…]
In a previous blog, we discussed how your employer can use your credit report, but the myth that they can check your credit score is still pervasive. The reason this myth won’t die is because people still tend to use the terms credit score and credit report interchangeably. We’re here to clear up the difference. [Read more…]
Many people who have gone through the foreclosure process wonder if they will ever able to buy a house again. While a foreclosure can be a big blow to your credit score, you may eventually be able to get another mortgage, but you’ll have to wait. The amount of time you must wait before applying for a new mortgage depends on your financial circumstances and your lender. [Read more…]
As a home owner or buyer, it’s important for you to understand what the Fair Credit Reporting Act is and how it protects you as a consumer. In doing so, you will know your rights and how to respond to unfair or inaccurate consumer reporting.
What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act (FCRA) was passed in 1970 and was the first law to require accurate and fair consumer reporting in the U.S. The FCRA protects individuals and their credit by requiring consumer reporting agencies to follow certain guidelines. [Read more…]
One of the most important factors a lender will consider when reviewing your application for a Kansas City home loan is your FICO ,or credit, score. The two largest influences on your credit score are how you pay your debts and how much debt you owe.
How Are FICO Scores Broken Down?
Each credit bureau has its own standards and guidelines for calculating your FICO score, so it will vary depending on the agency. Lenders will take the middle score from your credit report when considering your loan application.
Your FICO score is broken down into 5 different sections: [Read more…]
Your credit history is one of the most important factors that lenders consider when you apply for a mortgage in KC. Because of the financial crisis, Millennials are less likely to have a credit card than their parents, thus leading to less credit history. As a result, they are not as likely to build up the necessary credit to secure a home loan. By building up a good credit score, Millennials will have more financial options and negotiating power.
The benefits of having good credit include:
- Better chances for loan approval
- Lower interest rates
- Larger loans
Simplifying the Loan Approval Process
Having good credit does not necessarily guarantee that you will be given a mortgage in KC, but it is among the largest deciding factors. In addition, it will give you more confidence that you may be approved. If you have a fair to poor credit history, it’s possible you may not qualify for a home loan at all. Therefore, it’s essential to keep your credit as consistently healthy as possible. [Read more…]