FREE ANNUAL CREDIT REPORT

CHECK YOUR CREDIT:

You check the tires of your car, you go see your Doctor in order to assess your health, please check your credit because your next loan depends on it. Simply log on to http://www.annualcreditreport.com/. It's free and it may save you from embarrassment when you discover that the bills you thought were paid on time have been reported as delinquent, or that someone bought a car in your name, etc...

I do not want to alarm you, what I said before has happened; my reason for making that suggestion is that your credit is your life, a reflection of your standing and your calling card when it comes to getting any kind of financing. What rate, program and payment you will qualify for hinge on your scores.

Lenders pull your report from the three major bureaus: Transunion, Equifax and Experian. They base their decision on the middle score, let's say that you score 680, 720 and 600, you are 680 applicant. Your credit is pulled electronically, its contents are sent to what is known as a AU (Automated Underwriting). Your income, assets, employment, type of transaction, property, loan amount, etc... are also loaded in the system and a decision is made. All these events take place before an underwriter reviews your file! If you did not check your credit to correct potential errors, your loan can be denied because of simple errors in your credit report.

The computer programs that underwrite your file do not know you, they cannot ask you questions and, they are simply designed to match your profile to set loan guidelines.

My intent here is to give you a glimpse of what goes on with your loan application and to help you prepare for a hassle free financing experience.

An ounce of prevention, the saying goes is worth a pound of cure. Knowing some other requirements such as the minimum down payment, the maximum loan amounts and the variety of program is also needed. My website lists those items by category: Conventional, FHA/VA, Jumbo and Specialty Programs. Log on to http://www.p2funding.com/

I encourage you subscribe to this blog simply by clicking on the link at the top right side, it's free.