Frequently Asked...
Clean up your credit and improve your credit scores.
Many question are raised about credit, credit score and other credit issues that it's almost impossible to believe them all.
Tips How should you choose a lender?
Interest rates change daily
The mortgage banker industry goes through changes constantly, sometime for the good and sometime for the bad. Nonetheless, you have to be ready for it.
Getting a rate quote over the phone will probably not be “Locked” pricing
If you do not commit to the lender that day, the rates will be subject to change until your loan closes. Instead of being “Locked” at an agreed upon rate for a specific duration, usually 30 days.
The lender doesn’t know anything about you, your finances or credit history until they get a look at your credit and income
If they quote you a rate, it may not be one that you actually qualify for. This is where “bait and switch” comes in. The lender or advertisement tells you one thing to get you in then turn it around on you once they run your credit.
You really don’t know what the lender has to offer
For some of the programs advertised with the very low rate, you have to have stellar credit to get them.
FAQ or Myths about Credit
Pay off tax liens and your score will increase
· Reality: pay off tax liens and collections at closing of escrow to avoid reactivating dormant accounts
Inquiries automatically decrease your score
· Reality: FICO scores distinguish between a search for a single loan and a search for many new
credit lines. Borrowers should do their rate shopping with a focused period of time, usually within
fourteen days
Pay off credit card balances and close the card
· Reality: do not close accounts, a closed account will still show up on your credit report. In general,
having credit cards and making timely payments will raise your scores
Pay off collections and your score will increase
· Reality: if collections are actively reporting, it’s ok to payoff but I would pay them through the loan
or after the loan process and after closing. If collections are not actively reporting, leave them
alone! This is usually within a 24 month period. The same for charge offs!
Pay off old bad credit accounts and scores will go up
· Reality: Paying off any delinquent account will only add a new activation date with that institution.
Which, if it is not an open account but an inactive account such as; close, paid or transferred, it will
stay on your file for 7 years from the date your payment post the report. Paying off collections,
judgments, and tax liens will only show; paid as agreed, paid charge off, paid and released unless
the credit grantor or lien holder removes it from your file.
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· If it’s advertised on TV or Radio, they have to pay for those spots and someone has to fund it.
Those ads are not on the air for free so what do you think? We gave you a link for actual FREE reports