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Tuesday, January 01, 2013

Why check my credit when the mortgage lender will do that anyway?

When most folks, including your real estate agent, think about the mortgage pre-approval process they think of one thing - your credit score.

The credit score is a numerical measurement of your past ability to make payments on time and manage your credit.  The credit score will impact greatly the mortgage interest rate a borrower will pay, if approved.

Of course other things go into the mortgage pre-approval process like verification of employment history, documentation of earnings history, review of credit accounts, etc.  I am not a mortgage broker so this should be considered general information.  (Let me know and I will gladly send you mortgage contacts in Brevard County, Florida.)

Whether you are ready to apply for a mortgage now or in a year or two I encourage you to monitor your credit reports.  You can request your free annual credit report here.

When you receive your reports (one each from Transunion, EquiFax and Experian) take the time to review them carefully.  And if you find something that is not correct address it right away.

I spoke with someone yesterday who has already made an offer on a house.  They have a pre-approval but then the question came from the lenders…Explain your address in a different state that was reported earlier this month.

I am not sure how long this will take or if the deal will close.  It may take too long to correct this little inaccuracy.  How did it happen? Who knows?

Remember this key point: Monitor your credit reports regularly whether you are buying now or ever. Again I repeat.... And, if something is not correct, address it immediately!

If you are considering buying or selling a home in Brevard County, Florida, please give me a call at 321-693-3850 or email me if I can help in any way.



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