Lodi / Stockton CA Homes For Sale & Real Estate Information

The components that make up your FICO score are:

At Realty World Premier Associates, we take GREAT PRIDE in assisting our clients in every way we can.  If you’d like to know what your credit score is or whether or not you can qualify for a mortgage loan to purchase a home, then contact me directly and I’ll match you to an amazing local lender at NO CHARGE to you.

Happy Easter weekend!

Related articles

• Understanding Your Credit Score (loans.org)
• What Information Goes Into My Credit Report (And How Can I Improve My Score?) (myinvestingblog.com)

I remember when I was younger and needed a co-signer and I remember later on and being asked to BE a co-signer. I didn’t think much about needing one, but boy I sure did think twice about BEING one. You really put yourself, and your credit, on the line when you cosign for someone.  Especially if it’s a friend or family member.  Co-signer BEWARE!

Here is some information about this subject, courtesy of C.A.R., and the NY Times.

Co-signing On The Dotted Line…
Tighter lender standards and an unstable job market have made it tougher for some people, especially those just starting out, to qualify for a home mortgage on their own. So, some home buyers are turning to family members or close friends with good credit to co-sign a home loan.

Making sense of the story

• While becoming a co-signer may seem like a good solution, money manager and lenders caution against those who are asked to be the cosigner.

• A co-signer, even if not living in the house, is really a co-borrower, meaning he or she still is responsible for payments if the occupant is unable to meet his or her obligations. In other words, if the principal party defaults on the loan, the co-signer is on the hook.

• One financial planner suggests potential co-signers take a less risky alternative, such as providing a cash gift for the down payment. Under current tax laws, a person can give as much as $13,000 to a person, free of gift taxes, or $26,000 per person, if a married couple filing jointly is giving the money.

• Those considering co-signing a mortgage must conduct due diligence. First, the co-signer must understand why the family member or friend is asking for help. Potential co-signers shouldn’t be afraid to look into the requestor’s personal finances to help determine whether he or she will be able to repay the loan. Perusing credit reports also will show the track record he or she has for paying off debts.

• A discussion about worst-case scenarios also should take place before signing on the dotted line. Working out a written contract containing an agreement about what would happen in the event of a default, also is recommended.

• Co-signers also should keep in mind that the mortgage will show up on their credit report, and could affect their own ability to borrow money or buy a second home. If the principal borrower makes a late payment, that also will show up on the co-signer’s report.

I’d love to hear if you’ve ever needed or been a co-signer and if you survived it, or regret it and have a horror story.

Randy

Top Tips to Improve your Credit

1. Review your current credit report for accuracy. Everyone is entitled to one free credit report per year from each of the three credit bureaus—Experian, Equifax, and TransUnion. Get a copy of your credit report and look at it for accuracy. First, make sure that the information in your file is about you and only you, not someone who has a similar name or a similar Social Security number. It is very common for your credit reports to have mistakes or incorrect information. At a minimum, make sure that the information you are being evaluated on is current and correct.

2. Repair credit report mistakes. If you find something on your credit report that is incorrect or missing, you should dispute the mistake by contacting the credit bureaus directly. All credit bureaus have their dispute procedures on their website. They are also required by law to investigate any disputed items and these investigations will usually be done within 30 days of your request.

3. Pay your bills on time. Sounds like a no-brainer, right? Payment history accounts for roughly 35% of your credit score. Paying bills on time is the most important thing to do. If you’re struggling to catch up, contact your creditors to work out a payment schedule.

4. Increase the length of your credit history. This accounts for about 15% of your score. Don’t cancel your old card or get a lot of new ones in a short time span because this can hurt your score.

5. Keep credit card balances low. It’s a good idea to keep the balances below 25% of your available credit. Even if you pay off your credit cards every month, a high average balance will impact your score. This accounts for about 30% of your credit score.

6. Keep new credit requests to a minimum. This accounts for 10% of your score. Every time a lender runs your credit, an inquiry is recorded. If you are trying to get a loan, don’t apply for new credit cards first.

7. Be aware that paying off a collection account will not remove it from your credit report. It will stay on your report for seven years.

8. Pay off debt rather than moving it around. The most effective way to improve your credit score in this area is by paying down your revolving credit. In fact, owing the same amount but having fewer open accounts may lower your score.

9. Beware credit-repair scams. By all means, don’t pay someone to wipe away the negative items in your file. If they don’t follow through, the damaging items will reappear in two or three months.

Read more: http://rismedia.com

You can get copies of all 3 agency credit reports by going to www.AnnualCreditReport.com

Make it a great day!