Credit History Credit Scoring Lenders Require a Three bureau merged Report – Experian, Trans Union, Equifax Alternative Credit – Rental History Credit

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    15-Jan-2016

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<ul><li><p>Credit HistoryCredit ScoringLenders Require a Three bureau merged Report Experian, Trans Union, EquifaxAlternative Credit Rental HistoryCredit Standards</p></li><li><p>Understanding CreditCredit ScoresUnder 585=Low585-700= Normal700 &amp; up =HighCredit HistoryCollections / Judgments / InquiriesCorrecting Reporting ErrorsKnow Your Rights</p></li><li><p>Maximizing AffordabilityDebt ReconstructionAuto Loans: Reduce Rate and/or extend themConsolidate Credit Card DebtStudent LoansExtend them up to 25 yearsExplore Financing optionsFixed Rate vs. Adjustable Rate Mortgages (ARM)Consider other Income Sources</p></li><li><p>Ratios and Your QualificationsRatios are guidelines Lenders use in determining what you can qualify forRatios vary based on Loan ProgramsFront Ratio Your Total house payment divided by your gross monthly income usually 28% - 38%Back Ratio Your Total house payment and revolving or installment debt divided by your gross monthly income usually no more than 38% - 45%*Installment debt with less than 10 months remaining until they are paid off DONT COUNT!!Example --</p></li><li><p>PITI (Your Total Monthly Payment)P stands for Principal the portion of your payment that goes to reducing the loan balanceI stands for Interest that portion of your payment that is interestT stands for Taxes 1/12th of your annual property tax (prepaid) payment goes into your reserve account so the lender can pay your property taxes when they are due.I stands for Insurance 1/12th of your annual insurance (prepaid) bill goes into your reserve account so the lender can pay your hazard insurance when it is dueMI stands for Mortgage Insurance Required by law if you finance more than 80% of the value of your home. Protects the lender if you default.</p><p>Find Suze Ormond Books/Listen to her show</p><p>Every time a credit Card Company offers six months of finance free credit, if you switch, consider it! Read the fine print!!</p></li></ul>