UNDERSTANDING MORTGAGE CREDIT
Every mortgage company determines the credit worthiness of a borrower in a slightly differently manner. In many cases, mortgage lenders use several different measures to determine a borrower's eligibility for a home loan. Some of the aspects of your credit that will be considered include payment history, amount of debt payments, bankruptcies, and credit scores. Your Mortgage Professional will help you further understand your credit rating and the impact it will have on your ability to obtain a home loan.
CREDIT REPORT ACCESS
Due to the Fair Credit Reporting Act, only you and those businesses that have a "legitimate business need and a permissible purpose" can view your credit profile. Unless you have given written consent, individuals such as family members, neighbors, and co-workers are not allowed to access to your credit profile. The businesses that generally have access to your credit information are credit grantors, collection agencies, employers, and insurance companies. Any company that receives a copy of your credit profile will be listed under the "Inquiry" section of your credit report. When a person applies for a home loan and provides written authorization to the mortgage company to pull their credit, that mortgage company will access the applicant's credit report. Most companies will access a three-file-merge report. This means that a report from each of the credit repositories is accessed and reported together on one report along with each repository's credit scores.
You can access your credit report by going to
AnnualCreditReport.com . When you check your own credit, it does not create an inquiry and does not affect your score.
CREDIT REPORTING AGENCIES
CREDIT REPORT FREEZE/UNFREEZE
Your credit profile provides lenders with information that will assist them in determining if you are eligible for a home loan. While this profile provides lenders with plenty of valuable information, it is important to know that your race, religion, health records, criminal records, and political preferences are NOT included in this report. Your credit profile provides information only about your employment & address history, credit information, public record information, and other inquires that have been made in the past 120 days.
WHAT IS A FICO SCORE?
All home loan lenders evaluate the risk associated with loaning a borrower funds and many factors will determine a borrower's risk. One important factor is an individual's FICO score. Your FICO score is a numeric representation of your financial responsibility and this number is based on your credit history. A scale is used to measure FICO scores and the number can be anywhere between 300 and 850. The higher the number, the less risk associated with extending credit to that borrower. FICO scores are provided to mortgage lenders by the three major credit reporting agencies: Equifax, Experian, and TransUnion. The scores from these agencies are used when evaluating your home loan application.
ACADEMY NATIONAL MORTGAGE CORPORATION - NMLSR #191799
SERVING ALL OF COLORADO
Phone: 303.987.0622 / Cell/Text: 303.902.0082