|
Brought to you by Jonathan Ross Aldom
|
|
SOME IMPORTANT FACTS ABOUT CREDIT SCORES
|
|
|
Your credit score, also known as your FICO Score, plays an important role when you apply for a mortgage. As a homebuyer, you should know that having a good credit score plays a key role in the purchase process. Lenders check your credit score to determine if you will qualify for a home loan. Below are some important facts about credit scores you should know. If you have any questions about this information or any part of the home financing experience, please contact us!
|
|
|
|
|
|
What a credit score represents. Your credit score is a number that’s based on your payment history as recorded in your credit report. That detailed document shows how well you’ve paid off past debts, including credit cards, student loans, car loans, and wherever else you’ve made payments on money you’ve owed. Credit scores are calculated by and provided by three credit bureaus—Experian, Equifax, and TransUnion. The numbers may be different, but usually, all three scores are roughly the same.
|
|
|
|
|
|
The factors that go into your credit score. Here are the main variables the three credit bureaus consider when calculating your credit score, along with their approximate importance expressed as a percentage:
• Payment history, 35%--shows whether you make credit card and loan payments on time
• Debt-to-credit utilization, 30%--the amount of debt on your credit accounts divided by your credit limit on those accounts; it works against you if your debt exceeds 30% of your credit limit
• Credit history length, 15%--longer is better than shorter; ideally, you need at least six months of credit history to establish credit
• Credit mix, 10%--your credit score rises if you have different types of credit accounts—for example, credit cards, car loans, student loans, etc.
• New credit accounts, 10%--opening new credit accounts can raise your credit score because it can increase your debt-to-credit utilization, but it could lower your score because your average credit history length decreases when you open a new account
|
|
|
|
|
|
The scores you need to get a mortgage. Credit scores range from 300 to a perfect 850. A good credit score is 700 and above, fair is 650-699, and low is 650 and under. The score you need to get a mortgage varies by the type of loan and the lender. When applying for a home loan, we will work with you to determine the best fit based on your needs and your credit score.
|
|
|
|
|
|
Get a free credit report. You can get a free credit report from each of the three credit bureaus once a year at AnnualCreditReport.com. This is the only source for free credit reports and it’s authorized by federal law. Ask for your free annual report from one credit bureau at a time, so you get a fresh report every three months. Check that all the information is correct and up-to-date, and correct any errors. And be sure to check your credit score a few months before you start seriously shopping for a home. That’s because it will take some time if your score needs improving. Here are tips from FICO about repairing your credit and improving your FICO Scores. As always, we’re happy to help you with any of your home financing questions and needs.
|
|
|
|
|
|
If you have questions about home financing or refinancing, please text, call, or email. We're here to help!
|
|
|
|
Jonathan Ross Aldom Sales Manager NMLS# 50995
115 Unionville Indian Trail Road, Suite B9 Indian Trail, NC 28079
|
|
|
|
|
This email was sent to you because of your relationship with Jonathan Ross Aldom. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice, or a commitment to lend. Although the material is deemed to be accurate and reliable, there is no guarantee of its accuracy. The material contained in this message is the property of Developer's Mortgage Company and cannot be reproduced for any use without prior written consent. This is not a commitment to make a loan. Loan terms and conditions are effective as of the date you receive this material and may change without notice. All loans are subject to credit and property approval. Not all products are available in every State or for all loan amounts, programs, or credit grades. Other restrictions and limitations apply. Some products and loans require a down payment. There are maximum loan amounts. Developer’s Mortgage Company is an approved HUD Mortgagee and is approved to originate VA loans. Developer’s Mortgage Company is an approved Fannie Mae Seller. For Developer’s Mortgage Company: Georgia Residential Mortgage Licensee. Illinois Residential Mortgage Licensee. In Illinois Developer's Mortgage Company originates loans under the assumed name "DMC Funding". Licensed by the N.J. Department of Banking and Insurance. In New York, Developer’s Mortgage Company originates loans under the fictitious name DMC Funding. Licensed Mortgage Banker-NYS Department of Financial Services Lic # LMB 110461. Licensed by the Pennsylvania Department of Banking and Securities. In West Virginia, Developer’s Mortgage Company originates loans under the assumed name DMC Funding Company. Developer’s Mortgage Company is licensed to conduct business in CO, CT, FL, GA, IL, IN, MD, MI, MN, NC, NJ, NY, OH, PA, SC, TN, TX, VT and WV and may only take and solicit loan applications, and originate loans on properties, in those states. Developer's Mortgage Company is not approved to originate or solicit reverse mortgage loans in NC, NY or TN. *DMC Funding in lieu of true name Developer's Mortgage Company. Developer’s Mortgage Company is located at 3435 Stelzer Road Suite 1SA Columbus, OH 43219; Phone Number (614) 523- 0301; NMLS ID# 225548. SM 2024 Developer’s Mortgage Company. All rights reserved. For company and MLO licensing information, go to www.nmlsconsumeraccess.org. Jonathan Aldom is only licensed in GA, NJ, NC, and SC and may only take and solicit loan applications, and originate loans on properties, in GA, NJ, NC, and SC.
|
|
|
|