Did you know that your credit
score could have a significant impact on your mortgage rate regardless of
your credit status?
Although you may think your
credit is O.K., there may be items on your credit report that are being reported
incorrectly or worse yet not yours at all.
It does not matter how good
or poor you think your credit is. The credit rating (FICO) score that
the credit agencies report is what plays a significant role in determining
your mortgage rate. Even as little as 1 point can be the threshold to a better
rate.
Let's say you consider your
current credit status as being good. Your credit rating (FICO) score
is a 688, which reflects your good credit status. However, if your score
were a 700 you may be able to get a better rate on your mortgage. The difference
can mean saving thousands of dollars over the term of your mortgage. Now
let's go one step further. You decide to check your credit reports to see
if there are any inconsistencies. When you receive your reports you see an
item that you do not recognize. It ends up being an account that belongs
to someone else with the same name as you but a different social security
number. This is very common. You dispute the item with the reporting agency
and it is corrected. Now your credit score is a 702 and may help to qualify
you for a better rate.
You should make it a common
practice to get copies of your credit reports at least every 3 months. If
you live in New Jersey, by law you can request a free copy of your credit
report every 90 days. It does however take some time to get inconsistencies
corrected. In some cases, it can take several months. You should review them
frequently and not wait until you are actually applying for your mortgage
to find out that there is a problem on one or more of your credit
reports.
Remember you can save thousands
of dollars getting a mistake corrected on your credit report.
Following are the credit agencies
with their telephone number to request a copy of your report:
Transunion
|
1-800-916-8800 |
Experian |
1-800-831-5614 |
Equifax |
1-800-270-3435 |
When you get your reports review them carefully. There will be instructions
on how to dispute any items you feel are incorrect.You can also contact us
and one of our qualified representatives will be glad to help guide you through
the process.
