First Home, First Loan

Helping to make home ownership a pleasant reality
Find A Mortgage Now!
Find A Realtor Now!

Free Newsletter

The Real Estate Report

newsletter

Get Your Free Copy:

Email

What’s on Your Credit Report?

posted by Stephen Katz @ 11:47 PM
Tuesday, May 10, 2011

Included in your credit report is the following:

  • Personal information; your name, current and previous addresses, Social Security number. Any civil judgments, tax liens (federal or state), and bankruptcies.
  • A list of your current active, and closed, credit accounts, including bank credit cards and store accounts.
  • Any record of slow payments, missed payments and delinquencies.
  • Length of time each account has been open.

Look for the following when reviewing your report:

  • Any Incorrect information – an account that you never opened, one that you know you have closed, any payments that are not showing and that you have evidence of having paid. Accounts that you never opened could be a sign of identity theft – someone opening an account under your identity.
  • Any of your personal data that is wrong.
  • Persistent history of late payments, especially involving penalties for missing due dates. If this data is accurate, you probably will not qualify to get the best terms on your loan.
  • A habit of making the minimum payment on credit cards, thereby creating a growing balance, will lower your credit rating.
  • More than a few active credit cards and more than four or five store accounts will have a negative effect on your credit rating.
  • Outstanding debt that is a large percentage of the credit extended to you. If you are “maxing” out your credit cards, lenders will not be eager to extend credit to you on favorable terms.

If you find negative information on your credit report, and it is correct, you have two options. You can push back the home purchase decision until you can improve your credit rating, or you can move ahead and accept whatever loan terms you are offered. Changing your credit rating may take several months of diligence on your part, but it will save you a lot of money in the long run and make the purchase easier. If you decide to go ahead, contact a lender early to see what type of loan you can get with your current credit history. Be careful of taking on more debt.

Stephen Katz

(770) 309-0939 (direct) or (866) 742-8400 -- For the past 18 years, Stephen Katz has built a successful business almost entirely on referrals. As your mortgage consultant throughout the home loan process, Stephen will explain the pros and cons of all available mortgage programs and help you choose the financing option that is best suited to your needs. Throughout the loan process, he will keep you informed and will respond quickly to your requests with answers and solutions. Consistently a top producer, Stephen is a Mortgage Bankers Association "Diamond" Award winner, a Georgia Mortgage "Top Gun" and has closed almost half a billion dollars in loans. Put his knowledge and experience to work for you!

More Posts - Website

Comments are closed.

First Home, First Loan is proudly powered by WordPress