Information for all Buyers

Once you do a mortgage, lenders need to review your new credit report. Your new credit report is the true history of all financial operations that you have done, and also the history of your repaid debt. It done information about all this money that you borrowed, and tells about all your payments.
The history of your credit is connecting with credit report by Experian, Equifax and Transunion – this three private companies. Your credit will be seen by these companies, banks and by other creditors – to review loan applications and mortgage.

Your credit report need to include:

  • A list of your debts, such as car loans and credit cards, and also a history telling about how you finally paid them.
  • Any bills that you have transferred to the collection agency. Including, if you want, the medical bills and your phone.
  • Also public record information like bankruptcies or tax liens – even if all it happen many years ago.
  • Inquiries, that tells about your creditworthiness. When you are requesting credit, is made an inquiry. Also your report will show if you already have obtained credit – according the inquiry information.

In your report is saved a lot of information, and the majority of this information will be deleted after exactly seven years (and the bankruptcy will be deleted after ten years). And this information is unceasingly updated, to show the present information. Also you need to look at the credit reports that comes from the just named three companies – it’s important to be sure that all data are completely correct. Your credit report can vary and be different in one company than in other.

Your Credit Score

Once you applied for a mortgage, your credit score and credit report will be requested by the lender. A credit score is a simple number, generated by computer, that contains information about your willingness and ability to repay any debt – data, obtained thanks to your credit record.

Your mortgage also contains information from your credit score, and this data can finally decide the result of your application – if is approved or no. It also can be useful to can determine the interest rate of the mortgage.

Start With Building Of Your Credit

Build your credit and remember that this process is not difficult. Just follow these several tips:

  • Pay all bills on schedule. How you have paid all your bills earlier, can indicate to your future actions. Credit scores will tell about your payment record, so it’s better to pay on time!
  • At least, try to pay minimum recommended price. Is always possible to pay more, but you don’t need to pay less.
  • Also keep low the balances of your credit card. You shouldn’t “max out” your today’s credit card.
  • Don’t make too many new accounts or new loans. Inasmuch as in this situation all requisitions may concern lenders, you probably won’t can manage your today’s debt well.
  • If you have no credit, establish one.
  • Apply for several credit cards and use them carefully, paying each month.

Make Your Budget And Enjoy!

In the future, budget will help you with credit, and precisely, with the monthly bills. Also, it can help you with the increasing of your savings such as the down payment of home.

This fact of know – that you can save and have funds on the hands – always will help you in the process of the mortgage approval. You should to have enough personal savings, to they will can to help if you lose source of income of your job.