Archive for the ‘Credit’ Category

Mortgage Pre-Qualification VS Mortgage Pre-Approval

August 28, 2017

Do you know the difference?

Ready to purchase your home?

Know the difference between Mortgage Pre-Qualification and Mortgage Pre-Approval? Home Loan Application form

A Mortgage Pre-Qualification is a very brief look without the research on your actual documentation. The first glance, you might say.

A Mortgage Pre-Approval is what you should actually have before you start looking. It is issued only after a lender reviews pay stubs, tax returns, credit reports, and other important financial information about a potential borrower. You should also see what other Documents may be required to secure the loan at this time as well.

Realtor with For Sale SignMost Realtors want you to have an actual Pre-Approval before they will show you homes.

Once you have the Pre-Approval you will know how much home you can comfortably afford. Your Pre-Approval will let Seller’s know you are serious because you already have a Mortgage Loan secured.

Having a Mortgage Pre-approval can save both you and your Realtor time and emotional stress by already knowing how much you can afford and by knowing you already have your Mortgage Pre-Approval gives you confidence to move quickly once your perfect home is found.

 

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Trended Credit – What does it mean for you?

August 22, 2017

Trended Credit started in June 2016.

What does this mean for Consumers? Road to Good Credit

The Trended Credit Report gives lenders more of a historical view of payment history for the past 30 months.

This will show a bigger, more complete picture of a consumer’s credit behavior or an extended period of time.

It will give lenders the ability to see how consumers manage their credit over a longer period of time. The added focus will be what your balance for a particular trade line averages compared to your monthly payment and how much you actually paid each month.

If you pay your balances off each month your credit will show you are more creditworthy.

If you charge large amounts but pay the balance off each month a lender will consider you more credit worthy than the person that maintains a high balance and only makes the minimum payment each month.

Good News for Consumers

Stuff happens and Lenders understand life throws curve balls. The Trended Credit Report may help a Lender visually see how you normally handle credit but something happened and you made adjustments and are now back on track. This is good especially for home loans where underwriters tend to allow for a letter of explanation.

Of course for some Lender’s they may not consider hearing an explanation to determine their desire to extend credit. The Good news is though your payment history on the Trended Credit Report can reflect you have overcome an issue and are now back on course.

What can you do to ensure your Credit Scores continue to increase? Do you know your score

Best practice to increase your credit score is to use your credit account but always pay over the minimum payment required even if only by a few dollars while focusing on paying it down and keep the balance less than 30% of the total credit limit. This will show you know how to use the credit extended without over extended yourself.

Close out accounts you no longer need.

In the past we suggested that you keep old accounts open however with the new Trended Credit it is advised to close the credit accounts that you no longer leave with the exception of keeping the oldest accounts open so you can show longer payment history. Your Credit score is approved

How can we help you achieve your goals?

Leave a comment and let me know if you have any questions! Be responsible with the credit extended. It will pay off in the end!

What Does Your Credit Report Say About You?

October 6, 2016

Check your credit report for inaccuracies at least once a year!

 

When is the last time you checked your credit?

You should check your credit report at least once a year for inaccuracies. You are allowed to request one credit report free per year and also under special circumstance such and unemployed and looking for work.

Did you know most employers now check your credit during the background check? Don’t be caught off guard!

The Free Credit report will not show your scores but will allow you to make sure your credit report is accurate.

Request your free credit report here.

 

 

A Paid Collection is still a Collection.

August 10, 2016

Credit increase credit debt team jeffeson

Did you know….

Just because you pay off a collection it does not erase the derogatory marks on your credit report.

A collection is an account that has been severely past due and the creditor gave up on receiving payment and turned the debt over to a Collection Agency to try to collect the money owed usually adding additional fees to the balance.

Many people believe once a collection is paid that it will be removed from your credit report. Some collection agencies will even go as far as tell you that they will remove the collection from your credit but usually, (unfortunately) this is a ploy to get your payment.

Read more here.

By Donna Jefferson

Credit and Mortgage Loan Specialist

 

 

Credit and Your Payment History

August 8, 2016

How to Build Your Credit Scores

Credit increase credit debt team jeffeson

Did you know..

The only way to build your good credit is by utilizing credit accounts to establish a payment history and show responsibility by maintaining very low or zero balances.  A payment history, however, will take time to build your scores since it is based on the history of your payments being made on time. Simple as that! Your credit payment history makes up 35% of a Fico Score. So if you’re trying to make a comeback from derogatory credit or build new credit remember to be responsible with your payments and set reminders or auto payments to ensure you are not late with even one account that reports to the credit bureaus.

Build Your Credit

Learn ways to be responsible with your credit and your finances.

Paying by cash is a good practice to help save money because generally it is harder to hand over cash however,  paying cash for everything or paying with a debit card does not impact your credit score as all since it does not establish a payment history.

In most all of our lives we will need to purchase something on credit. It is best to work hard to maintain the best credit rating possible so you will be prepared and will receive better interest rates due to your excellent credit rating which will also save you money in the long run.

 

Want more?

More tips to come, give us a Like, Share, Follow so you don’t miss anything!

Is it okay to miss a credit card payment?

Ways to correct credit before you buy a home.

Ready to purchase a home? Follow Team Jefferson Home Loans on Facebook!

Need help with your credit? Follow us on Facebook for more tips!

 

 

 

Increase Your Credit Score

August 2, 2016

Credit card debt makes up 30% of your Fico Score.

Credit Score Credit Card Debt Team Jefferson

How Credit Score is Calculated

 

One of the best ways to increase your credit score is to start paying off your credit card debt? The “amounts owed” makes up 30% of your Fico score. To begin making a dent on the credit card balances start by making bigger payments on the card with the highest annual percentage rate. If possible double up on your monthly payment. Once that card is paid off you can then begin to pay on the second highest annual percentage rate card. Add the monthly payment money from the first card (now that it is paid off) and put it towards making an even larger payment on the second card.  You will then gain momentum as you work towards paying off your credit card debt, and save a TON of money in interest rates. Resist the urge to charge on the credit cards again unnecessarily and don’t close them and you will see an increase in your credit score.

 

Is it okay to miss a credit card payment?

June 22, 2016

What happens when you miss a credit card payment? Yes it will hurt your credit but just how much?

Source: Is it okay to miss a credit card payment?


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