Some Common Myths About Our Credit

If you are considering purchasing a Vancouver Home or a piece of  Portland Real Estate, be sure you are well informed today about how credit ratings work and are more aware of our own credit rates.

• If we have a lot of cash in the bank and a great income, a great job, we will always qualify for a home loan. No matter how much cash you have, or how much money you make, if you want a mortgage loan, you must meet the lender’s FICO score guidelines, and those guidelines are getting tougher and tougher.
• If we have no late pays and basically no debt that we will not have a problems getting credit. False! Financial responsibility and good credit are two different things completely. Having no credit accounts or debts doesn’t give you good credit, it gives you NO credit.
• Another misconception: By checking your own credit score before filling out an application at the bank, because you can make sure you have no negative surprises. The fact is that the bank or mortgage loan originator must run their own independent of your credit report and it might very well have a different score and other line items that the one you ran on yourself. Another myth: If you have had a foreclosure or a short sale on your record, you will not be able to get any credit for at least 7 years. This depends on your particular circumstances.In some cases your credit score can be rehabilitated enough to secure certain credit.
• Having a short sale show up on your credit report will have less impact than having a foreclosure show up on it. The fact is: Short sales and foreclosures have the same impact on your credit score, according to the credit reporting agencies. There are exceptions and your own particular circumstances can determine which way the agencies will rate you.

Tweet

Related posts:

1. Understanding Your Credit Rating
2. Foreclosures & Short Sales
3. Not-So-Free Credit Reports
4. FHA Continues to be Safe Mortgage Lifeline
5. What is a ‘short sale’