Everyone talks about getting a favorable rate on their mortgage. One of the most important factors in getting that favorable rate is your credit score. Here is some helpful information about how credit scores are determined and can be improved.
What Your Credit Score Means
Your credit score is essentially a standardized way for lenders to determine how risky it is to lend you money. The better the score, the lower the risk. The lower the risk, the lower your interest rate. In order to get the most favorable rate on your mortgage, you will want to have the best credit score possible.

Most lenders use a standard "grading" system to categorize credit scores. While some lenders develop their own systems for classification of scores, below is a general guide to score categorization:
Credit Score   Grade
800 - 850            A+
750 - 799            A
700 - 749            A-
650 - 699            B
600 - 649            C
550 - 599            D
500 - 549            E
300 - 499            F
Credit
How Your Credit Score Is Determined
Payment History (35% of score)

• Payment information on several types of accounts.
• Public record and collection items.
• Details on late or missed payments – specifically:
• How late they were;
• How much was owed;
• How recently they occurred; and,
• How many there are.

Amounts Owed (30% of score)

• Amount owed on all accounts.
• Amount owed on different types of accounts.
• Whether you are showing a balance on certain types of accounts.
• How much of the total credit line is being used.
• How much of installment loan accounts is still owed.

Length of Credit History (15% of score)

• How long your credit accounts have been established, in general.
• How long specific credit accounts have been established.
• How long it has been since you used certain accounts.

New Credit & Inquiries (10% of score)

• How long it has been since you opened a new account.
• How many recent requests for credit you have.
• Applying for too much credit in a short period of time can hurt your score

Types of Credit (10% of score)

• What kinds of credit accounts you have and how many of each.
• Total number of accounts you have.
How Your Credit Score Is Determined
If your credit score is keeping you from getting a better mortgage rate, here are a few things you can do to clean up your credit history.

Obtain a complete copy of your credit report from the three leading reporting agencies:

• Experian     http://www.experian.com     1-888-3997-3742
• Equifax       http://www.equifax.com      1-800-685-1111
• Transunion  http://www.transunion.com  1-800-888-4213

Review your credit report line-by-line, specifically searching for errors, omissions, duplications and "common name" errors.

• If you encounter errors, you should write out exactly what should be corrected and why. You are able to add
  100 words or less to reports on questioned items.

• You can also find assistance through credit counselors, who are available through the various credit bureaus.

Federal law requires credit bureaus to contact all creditors on items where mistakes were made. According to the Fair Credit Reporting Act of 1971, if these firms fail to respond to you in writing within 30 days, they are obligated to remove the disputed items from your records.
Here are some additional things to keep in mind:
• The Fair Isaac Resolution Resources Helpline is 1-800-777-2066.
• Most merchants are willing to negotiate customized repayment plans for those that find themselves with
   considerable debt.
• Chapter 13 bankruptcies stay on an individual's record for 7 years.
• Chapter 7 bankruptcies stay on an individual's record for 10 years.

Judgments, Garnishments or Liens

Liens, garnishments and judgments are typically indicators of an unstable borrower. Any judgments, garnishments or liens must be paid in full. Prior to closing, proof that the judgment, garnishment or lien has been cleared must be obtained; this can be reflected through a clear credit report supplement or a paid receipt form from the creditor. IRS tax liens also must be paid in full. Standard property tax liens do not have to be recorded as paid in full since they are not yet due or payable. Also, the borrower is obligated to provide a satisfactory letter of explanation.

Delinquent Child Support

Any outstanding child support payments must be brought current, and specific documentation from the credit-reporting agency stating this fact must be in the file with no exceptions. Because of the seriousness of the delinquency/default, which in many states can cause incarceration, a letter from the court or the legal authority responsible for collection in the city/state (e.g. district attorney, sheriff, etc.) is acceptable. A letter from an ex-spouse and copies of personal checks are not acceptable, nor is an agreed-upon, but not yet completed, payment plan.
Credit
Everyone talks about getting a favorable rate on their mortgage. One of the most important factors in getting that favorable rate is your credit score. Here is some helpful information about how credit scores are determined and can be improved.

What Your Credit Score Means
Your credit score is essentially a standardized way for lenders to determine how risky it is to lend you money. The better the score, the lower the risk. The lower the risk, the lower your interest rate. In order to get the most favorable rate on your mortgage, you will want to have the best credit score possible.

Most lenders use a standard "grading" system to categorize credit scores. While some lenders develop their own systems for classification of scores, below is a general guide to score categorization:

Credit Score   Grade
800 - 850            A+
750 - 799            A
700 - 749            A-
650 - 699            B
600 - 649            C
550 - 599            D
500 - 549            E
300 - 499            F


How Your Credit Score Is Determined
Payment History (35% of score)

• Payment information on several types of accounts.
• Public record and collection items.
• Details on late or missed payments – specifically:
• How late they were;
• How much was owed;
• How recently they occurred; and,
• How many there are.

Amounts Owed (30% of score)

• Amount owed on all accounts.
• Amount owed on different types of accounts.
• Whether you are showing a balance on certain types of accounts.
• How much of the total credit line is being used.
• How much of installment loan accounts is still owed.

Length of Credit History (15% of score)

• How long your credit accounts have been established, in general.
• How long specific credit accounts have been established.
• How long it has been since you used certain accounts.

New Credit & Inquiries (10% of score)

• How long it has been since you opened a new account.
• How many recent requests for credit you have.
• Applying for too much credit in a short period of time can hurt your score

Types of Credit (10% of score)

• What kinds of credit accounts you have and how many of each.
• Total number of accounts you have.


How Your Credit Score Is Determined
If your credit score is keeping you from getting a better mortgage rate, here are a few things you can do to clean up your credit history.

Obtain a complete copy of your credit report from the three leading reporting agencies:

• Experian     http://www.experian.com     1-888-3997-3742
• Equifax       http://www.equifax.com      1-800-685-1111
• Transunion  http://www.transunion.com  1-800-888-4213

Review your credit report line-by-line, specifically searching for errors, omissions, duplications and "common name" errors.

• If you encounter errors, you should write out exactly what should be corrected and why. You are able to add
  100 words or less to reports on questioned items.

• You can also find assistance through credit counselors, who are available through the various credit bureaus.

Federal law requires credit bureaus to contact all creditors on items where mistakes were made. According to the Fair Credit Reporting Act of 1971, if these firms fail to respond to you in writing within 30 days, they are obligated to remove the disputed items from your records.


Here are some additional things to keep in mind:
• The Fair Isaac Resolution Resources Helpline is 1-800-777-2066.
• Most merchants are willing to negotiate customized repayment plans for those that find themselves with
   considerable debt.
• Chapter 13 bankruptcies stay on an individual's record for 7 years.
• Chapter 7 bankruptcies stay on an individual's record for 10 years.

Judgments, Garnishments or Liens
Liens, garnishments and judgments are typically indicators of an unstable borrower. Any judgments, garnishments or liens must be paid in full. Prior to closing, proof that the judgment, garnishment or lien has been cleared must be obtained; this can be reflected through a clear credit report supplement or a paid receipt form from the creditor. IRS tax liens also must be paid in full. Standard property tax liens do not have to be recorded as paid in full since they are not yet due or payable. Also, the borrower is obligated to provide a satisfactory letter of explanation.

Delinquent Child Support
Any outstanding child support payments must be brought current, and specific documentation from the credit-reporting agency stating this fact must be in the file with no exceptions. Because of the seriousness of the delinquency/default, which in many states can cause incarceration, a letter from the court or the legal authority responsible for collection in the city/state (e.g. district attorney, sheriff, etc.) is acceptable. A letter from an ex-spouse and copies of personal checks are not acceptable, nor is an agreed-upon, but not yet completed, payment plan.
APPLY NOW
Credit
APPLY NOW


In accordance with Section 326 of the USA PATRIOT Act of 2001, PrimeLending NMLS: 13649 is required to obtain a copy of the documents used in identifying our new account customers. This notice is being provided to you for adequate notice given under this act.

PRIMELENDING A PLAINSCAPITAL COMPANY®, HOME LOANS MADE SIMPLE®, NEIGHBORHOODEDGE® and LOANTELLIGENCESM are trademarks, service marks, or registered trademarks or service marks of PrimeLending, a Plains Capital Company. You may not use, display or reproduce them without the prior written consent of PrimeLending. Further, you may not remove, obscure, or otherwise modify any copyright, trademark, confidentiality or other proprietary rights notices displayed on, embedded in, or otherwise appearing in any Content offered by, viewed on, or received through this site. All other trademarks identified and contained herein are the property of their respective owners and their use herein does not imply sponsorship or endorsement of their products or services.

1Survey administered and managed by an independent third party following loan closing. 96% satisfaction rating refers to the rating our customers give our loan officers. Our loan officers have received a 96% Customer Satisfaction Rating.

*A prequalification is not an approval of credit, and does not signify that underwriting requirements have been met.

Copyright © 2019 PRIMELENDING
This website is not intended to offer loan services for properties in New York.
Prime Lending Logo
APPLY NOW


In accordance with Section 326 of the USA PATRIOT Act of 2001, PrimeLending NMLS: 13649 is required to obtain a copy of the documents used in identifying our new account customers. This notice is being provided to you for adequate notice given under this act.

PRIMELENDING A PLAINSCAPITAL COMPANY®, HOME LOANS MADE SIMPLE®, NEIGHBORHOODEDGE® and LOANTELLIGENCESM are trademarks, service marks, or registered trademarks or service marks of PrimeLending, a Plains Capital Company. You may not use, display or reproduce them without the prior written consent of PrimeLending. Further, you may not remove, obscure, or otherwise modify any copyright, trademark, confidentiality or other proprietary rights notices displayed on, embedded in, or otherwise appearing in any Content offered by, viewed on, or received through this site. All other trademarks identified and contained herein are the property of their respective owners and their use herein does not imply sponsorship or endorsement of their products or services.

1Survey administered and managed by an independent third party following loan closing. 96% satisfaction rating refers to the rating our customers give our loan officers. Our loan officers have received a 96% Customer Satisfaction Rating.

*A prequalification is not an approval of credit, and does not signify that underwriting requirements have been met.

Copyright © 2019 PRIMELENDING
This website is not intended to offer loan services for properties in New York.
Devyn Alexander
Production Manager
NMLS #482904

951.273.8505
In accordance with Section 326 of the USA PATRIOT Act of 2001, PrimeLending NMLS: 13649 is required to obtain a copy of the documents used in identifying our new account customers. This notice is being provided to you for adequate notice given under this act.

PRIMELENDING A PLAINSCAPITAL COMPANY®, HOME LOANS MADE SIMPLE®, NEIGHBORHOODEDGE® and LOANTELLIGENCESM are trademarks, service marks, or registered trademarks or service marks of PrimeLending, a Plains Capital Company. You may not use, display or reproduce them without the prior written consent of PrimeLending. Further, you may not remove, obscure, or otherwise modify any copyright, trademark, confidentiality or other proprietary rights notices displayed on, embedded in, or otherwise appearing in any Content offered by, viewed on, or received through this site. All other trademarks identified and contained herein are the property of their respective owners and their use herein does not imply sponsorship or endorsement of their products or services.


Copyright © 2019 PRIMELENDING
This website is not intended to offer loan services for properties in New York.

*A prequalification is not an approval of credit, and does not signify that underwriting requirements have been met.

**On time closing and fast processing dependent on many factors including receiving timely documentation from the borrower.