The Home Buyer's Korner

Information presented should be used for educational purposes only.

March 7th, 2015

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GREATER ALEXANDRIA, NEARBY CITIES & PARISHES 

The Home Buyer’s Korner

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Credit Report ~ Get Yours Free

fico

Before applying for a home loan, avoid problems by pulling your own credit reports, as your first step in starting the path to home ownership.

There are countless things that can be misreported on your report that translate to an increased interest rate on your home loan and possibly a denial out right. Delinquent payments are one of many things that affect your scores. An inaccurate maximum credit limit versus high credit can be a make or break issue. If a maximum credit has a $11,000 limit and your balance is $3000, that’s less than 30% of the available credit limit. Ideally each card should have no more than 35% owed on each credit line.

To increase your score, it would be wise, before applying for a home loan, to spread out your balances by possibly focusing on the card with the highest balance to credit limit and making extra payments.  I know you’ve heard from financial planners to pay down the card with the highest rate first, but this isn’t so much about becoming debt free, as it’s about getting a mortgage.

By checking your credit reports several months before applying for a home loan, you can look into issues and fix them prior to the lender pulling their credit report. To get a free copy of your credit report, go to freecreditreport.com and set up the free account. You’re entitled to a copy of your credit report at least a year, so access it wisely.

I personally use this site annually to ensure my credit report doesn’t have any inaccurate information.  If you see any issue that might prevent you from getting a mortgage each of the three major credit bureaus offers free dispute sites to address your concerns.  I’ve included them here and dispute any negative or inaccurate information you find.

Experian

Equifax Credit Information Services

TransUnion

You won’t obtain all three FICO scores with the free version, but it does offer one from Experian.  When it’s time to getting pre-approved your loan officer can secure the other two and get the bigger picture for you.  For now, we’re just discussing the first steps to home ownership and ensuring information about your creditworthiness is being correctly reported.

After you’ve corrected any inaccurate information on your credit report ask your loan officer to get you pre-qualified.  They’ll be happy to do this and more often than not it’s free. But before you do, I hope you’ve interviewed a few lenders. If you had, one of your interview questions should have been: “Do you offer any credit repair or rapid rescoring tools for your customers?”  If they said yes, you’re probably in pretty good hands.

Here’s where a lender can save you several hundred dollars by advising you about your credit and FICO score, rather than using a credit repair service or paying a higher interest rate. Personally, I like lenders that offer their customers FICO Improvement Stimulators like CreditXpert.  For just a few dollars, your loan officer has access to their FICO simulator that offers “What if” scenarios and how much of an improved FICO score to expect over the next 30 days, based on your current FICO Score and sets limits you can work with. 

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A SIMPLE HOME SHOPPING INSPECTION TOOL

Organizing your home shopping experience affords a wise decision-making process.

This simple home inspection tool makes your ultimate buying decision a smart one.

To print this document click on “Open in New Window” located at the lower right corner;

click on “File”; then click on “Print”. In the center of the screen you will

have the option to “Create A Printable PDF of the Presentation”.

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Allen Parish

Elizabeth  Kinder  Oakdale  Oberlin  Reeves

Avoyelles Parish

Bordelonville  Bunkie  Center Point  Cottonport  Evergreen  Fifth Ward

Hessmer  Mansura  Marksville  Moreauville  Plaucheville  Simmesport

Beauregard Parish

DeRidder  Longville  Merryville  Oretta  Singer  Sugartown

Catahoula Parish

Harrisonburg  Jonesville  Sicily Island  Wallace Ridge

Concordia Parish

Clayton  Ferriday  Minorca  Monterey  Ridgecrest Spokane  Vidalia  West Ferriday

Evangeline Parish

Basile  Chataignier  Mamou  Pine Prairie  Reddell  Turkey Creek  Villa Platte

Grant Parish

Colfax  Creola  Dry Prong  Georgetown  Montgomery  Pollock  Prospect  Rock Hill

LaSalle Parish

Jena  Midway  Olla  Tullos  Urania

Natchitoches Parish

Ashland  Campti  Clarence  Goldonna  Natchez  Natchitoches

Point Place  Powhatan  Provencal  Robeline  Vienna Bend

Rapides Parish

Alexandria  Landmark Estates  Windermere Estates  Alexandria Junction  Ball  Boyce

Cheneyville  Deville  Forest Hill  Glenmora  Lecompte  MeNary

Pineville  Smithville  Woodworth

Sabine Parish

Belmont  Converse  Fisher  Florien  Fort Jesup  Many  Noble  Pleasant Hill  Zwolle

Vernon Parish

Anacoco  Hornbeck  Leesville  New Llano  North Fort  Polk  Pitkin  Rosepine  Simpson 

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