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Credit Help for Real Estate Financing: Credit Scores
   
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How To Hire The Right People
One of the biggest challenges any business owner or manager has is hiring the right people. I've recently discovered a simple, inexpensive yet very effective way which will help you get it right. This week I've asked Nathan Chanesman, Managing .....
When you buy real estate, lenders run all of the "big three" credit bureau reports. Each credit reporting agency lists your credit history as supplied to them by the individual lenders and includes governmental records. Each report assigns a credit score number to you. The credit scores reflect your theoretical risk of default to the lending institutions.One of the biggest challenges any business owner or manager has is hiring the right people. I've recently discovered a simple, inexpensive yet very effective way which will help you get it right. This week I've asked Nathan Chanesman, Managing .....
Software developed by Fair Isaac and Company generates your "FICO score." Experian uses a system called Fair Isaac Risk Model, a computer program which rates you with a score according to Experians information. Equifax bases scores on BEACON programs and TransUnion bases scores on EMPIRICA models.
Your Baseline
You have three credit scores, often called FICO scores, one from each credit bureau. The lender takes the middle score as your baseline. Lenders have different standards, but generally a "C" score is around 500 to 600, a "B" is around 600 to 680, and an "A-" is above 680. Over 700 is the magical number that gets you the attention you desire. If your score is under 500, find someone to privately finance for you or a partner with good credit while you work on improving your score.
Credit Problems? With A Subprime Mortgage Lender, Poor Credit Is Not A Problem
Have you been turned down for a home loan recently because you have a bad credit history? You may want to consider .....
How Lenders Rate YouHave you been turned down for a home loan recently because you have a bad credit history? You may want to consider .....
Credit score Available mortgage financing
720 - 800 Superb! You get what you want
700 - 719 Wonderful! You get top rates & terms
680 - 699 Good! You get good rates & terms
660 - 679 All right. You pay higher costs & rates
640 - 659 Okay score if good income
620 - 639 Weak. You need good income & some money
600 - 619 Poor. Use creative loan broker & pay more loan costs
580 - 599 Almost impossible without large down payment
Under 580 Work on fixing credit without delay
What Does Not Count In Your Credit Score
The scoring model doesn't compute:
Age & gender
Race
Whether you own a home or rent
Length of time at your current address
Job or length of employment at your job
Income
Education
Marital status
Whether or not you've been turned down for credit.
Real estate lenders don't just consider your credit score when you apply for mortgage financing. Understanding your credit score helps you with this one part of your mortgage requirements.
Sell Your Home And Invest At The Same Time
I continue to see the same For Sale signs in my neighborhood. The houses just aren't selling. If you are considering selling or have a home on the market that is not moving, it's .....
Copyright 2005 Jeanette J. Fisher - All Rights Reserved.I continue to see the same For Sale signs in my neighborhood. The houses just aren't selling. If you are considering selling or have a home on the market that is not moving, it's .....
Professor Jeanette Fisher, author of "Credit Help! Get the Credit You Need to Buy Real Estate," "Doghouse to Dollhouse for Dollars," and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, and newsletters, see http://www.recredithelp.com/