Your credit record includes how well you have handled credit in your past and how you use it right now. Your credit record is stored electronically by each of three private companies. These companies are Equifax, Experian and Trans Union.

A credit report is a listing of the information in your credit record at one of these companies. It shows your debts and payment history with people and companies who have loaned you money, such as banks, credit card companies and department stores. It shows whether you pay bills on time and whether you pay the proper amounts due. Your credit report also shows any history of tax liens, bankruptcies, etc., even if any of these have happened several years ago.

It is important for you to understand how significant your credit record is to getting a mortgage. Before you even meet with a mortgage lender, you should get copies of your credit reports and review them. Simply call The Mortgage Doctor. We will obtain your credit report and review it with you FREE of charge or obligation. 

One of the first things a mortgage lender will do when you ask for a mortgage loan is to order a copy of your credit report. As part of the credit report, lenders often get a credit score. A credit score is a computer-generated number that tells them how likely you are to repay your debts. A credit score is calculated by analyzing all the pieces of information in your credit record and summarizing them in a number. Your credit score is important! It will be used – along with your credit report and other information from your mortgage application – to determine whether you will get a mortgage to buy or refinance your home. Your credit score may also be used to determine the interest rate you get on your mortgage. Pay attention to your credit and keep it on the right track. A good credit record will give you a good credit score. And that’s good news when you go to apply for a mortgage loan.

The most commonly used credit score today is known as a "FICO" score. A company named Fair, Isaac & Co. developed a mathematical way to look at factors in your credit record that may affect your ability and willingness to repay a debt. These factors can include your record of repaying loans, i.e., student loans, car loans and credit card bills; any public records you might have, like tax liens and bankruptcies; how often you apply for installment loans and new credit cards; and how much you actually owe. For example, if you charge up to the limit on your credit cards – even if combined they don't seem to add up to a lot of money – this might hurt your credit score. Or, if you have recently applied for several credit cards, including department store payment plans or credit cards – even if you haven't begun to use them yet – your credit score might be affected negatively.

A credit score is a statistical way of predicting how likely it is that you will pay back a loan that may be made to you. Credit scores are widely used today because they speed up the mortgage approval process for most consumers, allowing mortgage lenders to work with consumers whose credit scores raise questions about their credit records. What's more, by using credit scores, mortgage lenders treat each person objectively because the same standards apply to everyone. Credit scores assess each factor equally for every consumer, every time. They do not include race, religion, national origin, gender or marital status as factors. Credit scores are blind to demographic or cultural differences among people.

Mortgage lenders look at other information besides your credit score before deciding whether to make you a mortgage loan. They look at your employment history, your income and outstanding debt, savings patterns and amount of savings, and the type of mortgage you want. Mortgage lenders also look at the value of the property you want to buy or refinance and the amount of the down payment you plan to make or the equity that you have. All of these factors combined together make up your "borrower profile." Mortgage lenders view this full picture to make a final decision about your ability and willingness to repay a mortgage loan. 

     Fortunately, We offer you all kind of different programs that allow most borrowers to obtain a mortgage loan when other lenders may say no. The Mortgage Doctor offers you programs that do not require you to have a job or verify your income.  Many programs do not require the verification of assets. We originate mortgage loans even with no money for a down payment. We also offer mortgage loans even in situations where you may have had a recent bankruptcy or slow credit.  

     If you are still renting today, you may be missing out on one the best times to obtain a mortgage loan, especially when you consider the present all time lows on interest rates. Please consult with us before buying a home. We offer same day pre-approvals FREE of charge or obligation on your part. 

Steps to Improving Your Credit Rating

How you've paid your bills in the past is usually the best indicator of how you'll pay in the future. Be sure to pay at least the minimum amount required by the date it is due on your account statement or invoice. You can always pay more but you should never pay less than the minimum. Remember – being late on a payment is a negative mark on your credit record, even if you make up the payments later. This is the single most important thing you can do. If you don't pay your bills on time, begin doing so immediately! Credit scores emphasize your most recent payment record.

Don't charge as much as your credit limits allow you to charge.
Think about closing down accounts you never use. Don't apply for too many loans or too many credit cards. This might be interpreted as a sign that you can easily get in over your head on payments you owe.

You need to have some credit history to have a credit score. 
Sometimes having a very limited credit record can have a negative effect on a credit score. If you rarely or never borrow money or use a credit card, consider applying for a credit card and using it carefully, paying off the debt each month as required.

It's important that you review your credit reports from each of three private companies – Equifax, Experian and Trans Union – at least once a year to make sure they are right. Your credit record, and therefore, your credit report may vary from one company to the other. You don't want your credit score or mortgage application to be based on incorrect information in any of your reports. Simply call The Mortgage Doctor. We will obtain your credit history and review it with you FREE of charge or obligation. Or you can also contact all three companies listed below that report on your credit. If you've been denied credit, you can get your credit report for free by following instructions in the written notice you received denying you credit. Otherwise, you can receive a copy for $8.00 or less from each company.

Equifax
Credit Information Services
P.O. Box 740256
Atlanta, GA 30374-0256
Phone: 1 (800) 685-1111
Web Site: www.equifax.com

Experian
National Consumer Assistance Center
P.O. Box 949
Allen, TX 75013-0949
Phone: 1 (800) 682-7654
Web Site: www.experian.com

Trans Union
National Disclosure Center
P.O. Box 390
Springfield, PA 19064
Phone: 1 (800) 888-4213
Web Site: www.tuc.com

If you believe that any one of your credit reports contains mistakes and you wish to dispute or change the mistake, contact the company that developed the report. Under the Fair Credit Reporting Act (FCRA), the company must investigate your disputed items within 30 days. You'll also receive written notice of the results of the investigation within five days of its completion, including a copy of your credit report if it has changed based upon the dispute.

Web Sites:      www.ftc.gov/ftc/consumer.htm      www.ftc.gov/ftc/moreinfo.htm

The National Foundation for Consumer Credit (NFCC) is a network of 1,300 local non-profit organizations that provide consumer credit education, confidential budget and debt counseling, and debt repayment programs to families and individuals. Web site: http://www.nfcc.org/