Long Beach Home Loans - Understanding Your Credit Scores

Long Beach Home Loans- Understanding how your credit score will affect the purchase of Long Beach homes

Long Beach Home Loans - Understanding Your Credit Scores

Understanding Your Credit Scores

 


Understanding how your credit score will affect the purchase of Long Beach homes.


We all know that a good credit score is not only helpful, but today it is necessary to get a mortgage to purchase Long Beach homes, or even buy a car.  Your credit score will also determine the interest rate you have to pay. 


Factors that go into figuring a credit score?

 

  • Have you Established Credit?  Paying cash is often construed to be the act of a responsible consumer, by doing so you establish no history for a mortgage lender to examine.  One way to establish credit is to get credit cards and use them - you can, and should, pay them off every month and on time.  A credit score considers the number of creditors as well as payment history.  

 

Read Also:  How to establish credit

 

  • Prompt Payment of Financial Obligations.  This is very important, but you should know that this accounts for only about a third of the total score.


  • Amount of Available Credit.  Your credit score might be impacted by the number of credit cards you have, even if you never use them.  They indicate the amount of credit you have access to, thus opening up the chance of financial strain.


  • Your Debt Ratio.  Lenders will consider your debt ratio when you apply for a Long Beach mortgage.  In spite of an excellent credit rating they will use this debt ratio to see if you can take on additional debt for a mortgage on your Long Beach home.

 

  • Consolidation of Debt.  Although, this might make it easier to pay off debt and thus increase your credit score, the process of consolidation will have no effect on your credit score.



What do the Credit Score numbers mean?


Your FICO score is comprised of a compilation of your credit history from the three major credit reporting bureaus, Equifax, Transunion, and Experian. Basically your credit score is determined by a formula that is calculated that is proprietary information and owned by Fair Isaac.   Your credit score number will be between 300-900, and the higher the number the better off you are.  

Are you ready to start the process of applying for a Long Beach Mortgage now?   Before you approach a lending institution for a Long Beach home mortgage, know where you stand with your credit score.   Not sure where you stand, a good Mortgage professional will assist you with obtaining a copy of your report.  After obtaining a copy of it, they will review it with you and assist you to resolve any issues that are affecting your credit score negatively.

 

 

Guest author:  Colleen Kulikowski, Buffalo NY Realtor

 

 


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http://www.longbeachrealestatehome.com/0062E6
Posted on November 14, 2008 09:55:46 by Laurie Manny
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Print Laurie Manny Email 5 feedbacks »
Comment from: Kelly Kilpatrick [Visitor] Email · http://www.rsmlifestyles.com
*****

Laurie, I love your MLS buttons and I love the Fico score photo.  This is a nce easy way for clients to see what goes into the making of a credit score.

PermalinkPermalink November 14, 2008 20:52:05
Comment from: Kevin Tomlinson [Visitor] Email
*****

Laurie


You are the #1 Long Beach Real Estate agent!

PermalinkPermalink November 15, 2008 00:10:19
Comment from: Laurie Manny [Visitor] Email · http://www.lauriemanny.com/
*****

Kelly,  I thought that picture was pretty kewl too.  Colleen is a "Dancing with the stars" fan, lol...  Colleen put together a great article for consumers.


Kevin, Mutual admiration committee, lol...

PermalinkPermalink November 15, 2008 06:34:43
Comment from: Colleen Kulikowski [Visitor] Email · http://www.buffaloniagararealestatehomesales.com/wnyrealtor
*****

Laurie -- Thanks for the wonderful opportunity to guest write on your site!  


It was fun writing for someone else...   You have to admit that the photo was perfect!

PermalinkPermalink November 15, 2008 15:31:47
Comment from: Dennis Blackmore [Visitor] Email · http://www.dennisblackmore.com
*****

Great pictures!!

PermalinkPermalink December 09, 2008 21:41:21
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To begin your search for the perfect home or to sell your home in the Long Beach area, begin your journey by calling Laurie Manny at (562) 212-5420.