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Homebuyers Need Good Credit Score - 2010-07-11 |
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HOMEBUYERS NEED GOOD CREDIT SCORE
Last week we saw how potential buyers seeking a loan will need a down payment, a steady job, and a clear record of meeting their financial obligations in the past. And yes, all of those are vital in your loan application. But no, these are no longer the critical elements that make or break your case. In recent years, lenders have become increasingly dependent on a three digit number.
It's called your credit score, and it's role is to predict the likelihood you will pay back what you borrowed on a timely basis. The higher the number, the lower the chance you will default on your loan. Your score is derived solely from information contained in your credit report, and does not include your age, your race or where you live. Instead, only proven predictors of credit performance are included.
Credit cruncher Fair Isaac & Company (FICO) is the industry leader, and offers a complete education on the topic at www.myfico.com. It's a great place for potential borrowers to begin their credit homework assignment.
FICO keeps many secrets about how scores are calculated, but tells us the following:
* Your payment history has the largest influence on your score, accounting for 35 percent of the total. Have you paid your monthly payments as agreed or have you been late a time or two? Prompt payment matters.
* How much you owe makes up 30 percent of your score, indicating that you are or are not overusing the credit you have. It is best to keep balances low in the year prior to your loan application.
* Length of your credit history reports how long you have successfully used credit in the past, and how recently you have used it. This time factor makes up 15 percent of your score.
* Finally, your use of new credit and the types of credit you have sought in the past each account for 10 percent of your score. It's a good idea to minimize new credit requests prior to making your application for a home loan. Also, avoid overuse of credit which might be indicated by frequent payday loans and small installment loans. If a lender believes you are dependent on your credit, they will be less likely to grant you more.
The important message from lenders is that you should always pay your bills on time and not abuse your credit by living beyond your means.
Another fact you need to know is this: your credit score is much more influenced by recent activity than by problems in your past. Most derogatory information is reported for seven years, but fades in importance long before then. That means you can improve your credit score in the next few months by simply paying your bills on time. For a broader discussion, visit money99.com.
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Upcoming Events
"EPA CERTIFIED RENOVATOR" TRAINING
Do You Work with Real Estate? You Must Be LEAD SAFE CERTIFIED as of April 22nd.
To all owners, realtors, investors, property managers, contractors, electricians, plumbers and painters. Do you ever engage in any level of renovation? If so, read this:
Any renovator, from owners to contractors, from plumbers to electricians to painters, who disturbs lead paint while working in a pre-1978 home, school or day care center, now must be Lead-Safe Certified. If you’re not, you can face tens of thousands of dollars in fines. Plus, you put the health of yourself, your workers and your customers at risk, which could result in lawsuits. One simple 8 hour class certifies you for five years. It’s that easy.
Since April 22, 2010, there are new Federal rules regarding how you perform any work that disturbs lead-based paint in homes, child-care facilities and schools built before 1978. You now must be EPA certified and follow specific work practices to prevent lead contamination.
Failure to follow the new rules can result in federal fines of up to $32,500 per day or up to 5 years in federal prison, or both. Don’t take a chance - it’s not worth it.
How To Become an EPA Certified Renovator:
In just one day, John Adams will teach you how to meet all EPA requirements and become an “EPA Certified Renovator.”
Don’t wait - register now! Click on “Seminars” and choose your day!
- Friday, September 10th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, September 17th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, September 24th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, October 1st at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
- Friday, October 8th at Suburban Plaza, 2643 North Decatur Road
and Church Street, Decatur , Lower Level, beneath Hancock Fabrics
8:30 A.M. to 5:30 P.M.
Total Course Cost: $295, includes exam and EPA-HUD 400 page manual
Space is limited to 20 participants.
Training services provided by Seagull Environmental Management Co, Inc.
Courses are approved for purposed of certification under Section 402 of TSCA for the Certified Renovator.
This course has been approved by the Georgia Real Estate Commission for 7 hours of Real Estate Continuing Education
For more information, call toll-free 888-373-0029
Click above on the "Seminars" button to register
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