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Archive for May, 2011

A credit score is a number that represents your calculated measure of credit risk. There are a number of ways you can obtain a copy of your personal credit report. Credit scores cannot predict with certainty how you will manage credit, but they do provide an objective estimate of how likely you are to repay on time and according to terms.

Generally speaking, a credit score of 750 or higher is considered good — that is, lenders will consider you a lower risk of defaulting on a line of credit. Monitoring your credit can help you keep track of your credit activity, which is particularly useful if you’re planning to apply for a loan or line of credit in the foreseeable future.

A credit score in the 600s should enable you to get a loan with reasonable terms. Once you’ve gotten your score and seen your report, you are better equipped to improve your score.

Mistakes can affect your credit score, even if you didn’t make them. Even if you pay off your balance every month, keeping your spending below that 30 percent mark can help significantly.

Getting your free credit score online provides you with instant access and you are able to print it out for your records. All reporting agencies grade your credit based on a score which is used by lenders nationwide to determine loan qualifications. The credit score is also viewed by various employers before hiring individuals and those with poor credit rating may have a laggard here. Here the debtors are rated from scores of 300 to 850.

Credit scores range from 300 to 850, with 300 the absolute lowest and 850 the almost unattainable maximum.
They do not constitute, and should not be construed as, legal or financial advice. Those seeking to improve credit scores are advised to speak to a financial planner to assess whether credit repair services can help them move from a bad to a good credit score and help them build a stronger credit history. Do they provide a free, no-obligation credit consult? There is more than one way to create a credit score therefore the credit score you are assigned from different agencies will not be exactly the same.

If you’re thinking about purchasing a manufactured home it pays to educate yourself about the mortgage process. Buying a home may well be the largest purchase you ever make so it only makes sense that you need to understand what’s involved to protect your financial investment.

There is a lot involved when getting a mortgage and the vast majority of lenders will help you understand what is going on throughout the process. They are not out to get you or trick you into signing a contract that could cause you financial harm. It’s not in their best interest to do this. Lenders are in the business of lending money to make money by charging interest. But for them to ensure that the quote and contract they are proposing works for you they need to have a clear view of your current financial situation. That’s why it is important for you to be upfront and honest about your financial state and what you need to make your homeownership dream come true.

The first thing most borrowers look at are advertised interest rates.

This is natural because lenders use this heavily in their advertising, and honestly it’s what most people talk about when discussing their home loans. While the interest rate does have a large affect on the terms of the loan there are other costs that every borrower needs to be aware of.

The largest cost associated with any home mortgage is the closing costs. All home lenders are required to provide potential borrowers with a Good Faith Estimate (GFE) once they have completed the loan application. The GFE is paper work that spells out in detail the closing costs and fees associated with the loan. It should also have information about the interest rate and terms if you should accept their offer.
Any lender that doesn’t provide a GFE should be avoided.

Most new manufactured home buyers are also unaware that they can actually bargain with their lender to reduce the interest rate. This is done by purchasing points where the borrower pays extra money (buys points) to reduce the rate. The more points bought the lower the interest rate can go. While buying points sounds like a good idea any borrower need to do their homework to make sure the extra outlay of money makes sound financial sense.

The competency of the lending officer should also be kept under scrutiny. Most are highly professional and will provide exceptional service, but they are human and can make mistakes. Be sure to get everything in writing and make copies of any important paperwork. Document everything so there are no surprises at the closing. And if the broker doesn’t seem to be able to answer questions and provide professional service ask to speak with someone else or take your business elsewhere.