Credit Scores - Their Role in Today's Mortgage Decisions...
Posted July 7, 2008 11:57 a.m. EDT
What role does your credit score play in the mortgage process today? The credit changes which have occurred over the past eighteen months or so have made your credit score even more important when having an underwriting decision made regarding your credit worthiness in the mortgage market…
First of all – what IS a credit score? And more importantly – what is YOUR credit score? How is it calculated – who has access to it? The general rule of thumb is that as a consumer, you should check your credit report at least once a year – to make certain that no one else is attempting to obtain credit in your name, as well as to keep track of where your credit score lies… so you’ll know your score when attempting to purchase products and services which require credit scores.
The three main credit repositories are Experian, Equifax and Trans Union. Each of which feeds an individual score into a database which is then used by the mortgage industry when determining your credit worthiness as a borrower. With minimum credit score standards increasing daily for certain mortgage loan types, it’s imperative to not only know your scores – but to be doing everything you can to increase those scores on a regular basis.
You should be able to obtain your credit score free of charge by contacting one of the above mentioned credit repositories. I would highly recommend doing so at least once a year.
Jeremy M. Salemson
Corporate Investors Mortgage Group, Inc.