The Home Buyer's Korner

Information presented should be used for educational purposes only.

March 7th, 2015

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GREATER SHREVEPORT, 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. 

Related Post

Credit Score How It Works

Credit Score~Boost Yours

Credit Score~Keep Yours High

FICO~Understand It l Fix It

Rapid Rescoring

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LOUISIANA HOME OWNERSHIP TOOLS

FHA 203K

Your Home Purchasing or Refinancing & Renovation Tool

Mortgage Loan Officers, Real Estate Agents & General Contractors

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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”.

START YOUR PATH TO HOME OWNERSHIP TODAY

Bienville Parish

Arcadia  Bienville  Bryceland  Castor  Gibsland  Jamestown

Lucky  Mount Lebanon  Ringold  Saline

Bossier Parish

Benton  Bossier City  De Lis Decor Estates

Golden Meadows Estates  Lakewood Estates

Rosedale Place Estates  Stonebridge Estates

Eastwood  Foster  Haughton

Hinkle  Plain Dealing  Red Chute

Caddo Parish

Belcher  Blanchard  Caddo  Cedar Grove  Cut Off Junction  Gilliam

 Greenwood  Hosston  Ida  La Rosen  Lakeview  Mooringsport

North Highlands  Oil City  Reisor  Rodessa  Shreveport

Airport Pines Road Estates  Allendale Lakeside Estates

Broadmoor Estates  Anderson Island Estates  Shreve Island Estates

Caddo Heights Estates  South Highlands  Cedar Grove Estates

Lynbrook Estates  Clearbrooke-Riverbrooke Estates

Country Club Hills Estates  Lakeshore Shopping Estates

Downtown Riverfront Estates  Ellerbe Woods Estates

Fox Crossing Estates  Freestate Estates  North Highlands Estates

 Glen Iris  Highland Estates  Stoner Hill Estates  Hyde Park Estates

Brookwood Estates  Southern Hills Estates  Jenkins Subdivision

Pinecroft Subdivision  Martin Luther King Drive Area Estates

Mooretown and Hollywood Heights Estates

Northwood Estates  Old Mooringsport Road Estates

Pine Island Estates  Queensborough Estates

Springlake Estates  University Terrace Estates

Sunset Estates  Garden Valley Estates  Morningside Estates

Western Hills and Yarborough Subdivision  Willow Ridge Estates

Summer Grove  Vivian  Werner Park

Desoto Parish

Frierson  Gloster  Grand Cane Keatchie  Logansport  Longstreet

Mansfield  South Mansfield  Stanley  Stonewall

Lincoln Parish

Choudrant  Dubach  Grambling  Ruston  Simsboro  Vienna

Red River Parish

Coushatta  Edgefield  Hall Summit  Martin

Webster Parish

Cotton Valley  Cullen  Dixie Inn  Doyline  Dubberly  Heflin

Minden  Sarepta  Shongaloo  Sibley  Springhill

Winn Parish 

Atlanta  Calvin  Dodson  Hatfield  Jordan Hill  Joyce

Saint Maurice  Sikes  Winnfield

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