Whats in my credit report? - Even though each credit reporting agency reports information differently, most will contain the following:
-Identifying info, like your name, address, social security number, date of birth, and employment information are all used to identify who you are. Keep in mind that these factors are not used at all in calculating your credit score.
-Trade lines, which, essentially, are your credit account, new and old. Trade line information typically included the type of account, date you opened the account and the accounts credit limit or loan amount, among other things.
-Credit Inquiries. Basically, whenever you apply for a loan, you give permission for the lender to request a copy of your credit report. This is how inquiries show-up on your report, which also provides a list of everyone who has accessed your credit report within the last 2 years.
-Any public record information from state and county courts, including bankruptcies, foreclosures, law suits, wage attachments, liens and judgments.
Credit reports will also contain information on loans for which you have co-signed. Accounts in which you are simply an authorized user will also appear on your credit report. If you can document that another person in making the payments on these accounts, you may not be considered liable for these debts for mortgage qualification purposes.
Most credit reports will also contain a section that has a summary of all your entire credit history. This summary will usually state how much you owe and what your payments are for real estate debt, installment debt, revolving debt, collection accounts, and other miscellaneous debt. It will also include a quick payment history for each type of debt and the total number of accounts under each type of debt. This summary does not provide specific information on specific accounts but is nice to look at just to view a quick summary of your credit profile to see how your liabilities break down.
The credit report is one of the tools used by lenders to determin how much of a risk it is to lend you money. The credit report shows your history of making timely payments.
Credit Dos & Donts during the Loan Process - Here are some basic dos and donts of things to help keep your credit intact during the mortgage loan process. For more information about improving your current credit rating, contact Dave Zwierecki at 888-418-4467 or info@TheMortgageU.com.
During the mortgage loan process do not go out and apply for new credit, even if the offer is for 90 or 120 days, or for 6 or 12 months, same as cash with no payments necessary. Applying for new credit can not only lower your credit score, but it can still report to your credit report before closing and it can still negatively affect your credit score, even if a payment is not necessary to be made for a year. In some cases this could even increase your debt ratio enough to possibly disqualify you for the home mortgage financing. Therefore, do not apply for new credit or charge up new furniture or appliances on existing credit cards (even if there are exceptional buy now, pay later promotions going on) until after you have closed on your home mortgage loan.
Do stay current on your existing loans. Even if you are paying off accounts with the proceeds of a new loan, be sure to still make your monthly payments on those loans. 1 late can significantly impact your credit score.
Don't max out or over charge on your credit cards. Going over your credit limit raises a red flag and is the quickest way to reduce your score without being delinquent on an account.
Refinance With Bad Credit and Behind on Mortgage - Current home owners who have bad credit and/or mortgage late payments that need to refinance still have many options available to them today. As a home owner with bad credit you can still refinance with mortgage late payments as much as 120 days late.
While refinancing with bad credit and/or being behind on your mortgage can be a tough task at times, you usually still have options available to you. Unlike a person who has great credit and hundreds and possibly even thousands of choices in mortgage lenders to choose from, a person with bad credit may only have a handful of options available to them. Some of the most common lenders that can handle refinances for people with bad credit and that are behind on their mortgages are called hard money lenders. Hard money lenders will usually charge somewhat higher rates than everything that is advertised, however they can be a viable option to help save your home and to help get you back on track with your finances.
If you are in this credit situation, you should consider getting into a short-term loan, which is typically lower in overall costs, but allows you ample time to rebuild your credit and assets, so that you can refinance into a more attractive rate and term, once your credit scores have increased.