Credit Report 

    A Credit Profile is comprised of five types of information:

• Identifying Information

• Employment Information

• Credit Information

• Public Record Information

• Inquiries

Race, religion, health, driving record, criminal record, political preference, or income is not included in your credit report.

If you have any credit issues, please feel free to discuss them with us. We are going to help you prepare your letter of explanation.  

  Credit scoring is a statistical method for evaluating the credit risk of a mortgage application.

The score focuses on the following elements: past delinquencies, derogatory payment behavior, current debt levels, length of credit history, types of credit, and a number of inquiries.

  The most commonly used score is called the FICO score. This score was developed by Fair, Isaac & Company, Inc. for the three major credit bureaus: Equifax, Experian, and   TransUnion.

FICO scores are reference scores. they only take into consideration information contained in an individual's credit history. They do not factor in income, savings, or down payment amounts.

   Credit scores are established on five factors: 35% of the score is based on payment history, 30% on the amount owed, 15% on how long you have had credit, 10% percent on new credit being sought, and 10% on the types of credit you have. The scores are useful for directing applications to specific loan programs and for setting underwriting levels such as Streamline, Traditional or Second Review. However, they are not the last word when it comes to the type of program you will be eligible for or your interest rate.

Here are a few ways you can improve your credit score:

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•  Pay your bills in a timely manner.

• Keep Balances low on credit cards.

• Restrict your credit accounts to what you truly need. Accounts that are no longer needed should be canceled as zero balance accounts may still count against you.

• Make sure your credit report information is accurate.

• Be cautious in your credit application and ensure that your credit is only verified when required.