PH: (786) 235-0888
FX: (786) 235-0889
donna@elitemortgage.net
Elite Mortgage, Inc. is a Licensed Correspondent Mortgage Lender...
About Credit:
After struggling with grades and scores in our educational system you would think that you were free of that kind of pressure, upon entering the “real world.” But if you want a mortgage, a car loan, or a credit card, you are still going to be under pressure to get those high marks.
Enter the “Infamous Credit Score”.
When applying for a car loan, mortgage, etc., the credit score determines your
credit worthiness. Your credit score is currently based on three credit
reporting bureaus, each having a different model for scoring a persons’ credit
worthiness. Lenders rely heavily on these scores in determining who qualifies
for a mortgage and what the interest rate will be.
If , for example a person was ill, divorced, or for any other reason did not pay their debts on time they will suffer the consequences of lower scores and higher interest rates.
If there are disputes on your credit report, you can attempt to resolve the problem by calling the toll-free numbers to the credit bureaus .There are instructions on how to send the questions or disputed items to each credit bureau by way of a Post Office Box. The bureaus have 30 days to respond to your inquiries.
It is frustrating process, especially if you have signed a contract to purchase a property, because it’s your “Credit Score” that will determine your fate.
A score of 620 or above will be considered an “A” borrower (back to grades) .If your score is below 620, you will be labeled with the “B-C -D“ grades which come with higher interest rates.
Why the need for this grading system? The lenders base it on the amount of risk involved with receiving prompt payments from you. It may seem illogical because by giving you a higher interest rate it makes it more difficult for you to pay back the loan. Just like school, when you received a “C” or “D” your parents withheld privileges until your grades improved and then you were rewarded. Having good scores entitle you to the lowest interest rate available and lower payments- incentive for raising your scores!
Many companies advertise that they will take over
your payments and relieve your debt.
Usually, there are fees involved in accomplishing this. You may wind up paying
more
money than is necessary and still be at loss on how to manage your debt.
Unless you learn how to budget your money your problems will continue.
I believe a course in establishing good credit should be a prerequisite for graduating high school. If students were taught more “life lessons” in school there may be a better chance for them in the “real world”.
I am available to answer your questions regarding
credit or anything else pertaining to
mortgages.