Friday, August 04, 2006
Asheville Real Estate Journal Credit Scores
Asheville Real Estate Journal
Your Credit Score & Info You Can USE
When it comes to investing in real property, credit-advisory programs can prove valuable.
If you are searching for the best rate possible from a lender, the difference between a 720 score and 580
could be as much as 3 points.
Most of you already know that lenders generally have a practice of running a credit score check
immediately before a borrower closes on a mortgage. That’s why I always caution my clients
NOT to take on more debt, forget to pay bills or buy major appliances or a car
before they close on their investment property or home .
All these actions can affect a credit score for the worse.
One of my clients did not heed this advice and found himself facing not only a higher rate,
but also being asked to come up with a larger down payment.
Loan officers or mortgage brokers might offer you a couple of programs
to assist you in staying on top of your credit score.
These credit-advisory programs can prove valuable to anyone searching for the best rate possible.
1) ScoreWizard. This is a simulator that allows you to scan credit files for opportunities to raise scores.
2) ScoreRight. Uses common assumptions to pose ways to increase a score.
Think of it this way, on a $200,000, 30-year loan, the difference between 6.5 % and 9.5 % is
$418 per month, $5,016 a year and $150,480 over the loan's 30-year life.
Good Eye!
1031@janeAnne.com
www.Asheville1031Realty.com
Your Credit Score & Info You Can USE
When it comes to investing in real property, credit-advisory programs can prove valuable.
If you are searching for the best rate possible from a lender, the difference between a 720 score and 580
could be as much as 3 points.
Most of you already know that lenders generally have a practice of running a credit score check
immediately before a borrower closes on a mortgage. That’s why I always caution my clients
NOT to take on more debt, forget to pay bills or buy major appliances or a car
before they close on their investment property or home .
All these actions can affect a credit score for the worse.
One of my clients did not heed this advice and found himself facing not only a higher rate,
but also being asked to come up with a larger down payment.
Loan officers or mortgage brokers might offer you a couple of programs
to assist you in staying on top of your credit score.
These credit-advisory programs can prove valuable to anyone searching for the best rate possible.
1) ScoreWizard. This is a simulator that allows you to scan credit files for opportunities to raise scores.
2) ScoreRight. Uses common assumptions to pose ways to increase a score.
Think of it this way, on a $200,000, 30-year loan, the difference between 6.5 % and 9.5 % is
$418 per month, $5,016 a year and $150,480 over the loan's 30-year life.
Good Eye!
1031@janeAnne.com
www.Asheville1031Realty.com
