The days of funding a loan on an average credit score are long gone.  Today even an FHA loan requires a minimum score of 620.  I’ve highlighted some tips to help you be more aware of your credit and some ways to improve your score:

• DON’T BE LATE!:  One of the worst things you can do is being late on a payment.  Not only are you monetarily penalized, but timeliness amounts to 35% of your credit score.  Set reminders for yourself and if you happen to miss a payment, pay it as soon as possible.  Repeat after me… I will not be late on credit card payments!
• Know your credit score: You can get a free credit report each year (www.annualcreditreport.com) so take advantage of this service.  You will also want to know what lenders see when they pull your credit, so spend the extra $15.95 to learn what your FICO score is.
• Search for errors:  Statistics show that 70% of credit reports show serious mistakes.  That’s a huge number!  When you get your FICO score, search for any mistakes and get those fixed.  The Fair Credit Reporting Act requires credit reporting agencies to fix those mistakes, but you have to take the initiative to make that happen.
• Debt vs. Income Ratio:  Amounting to 30% of your score is how much you owe versus how much credit has been extended to you.  If you owe on credit cards, keep the level under at least 20% (preferably 0-10%) for each card.  The more you owe, the more your credit will be hit.  Are you already over 20%?  Pay down your debt as soon as you are able to.  Without your debts under control, financing a home will be extremely difficult, if not impossible.
• Don’t cancel cards:  15% of your score is based on the length of your credit history.  If you have an old card you don’t use anymore, consider moving a recurring charge (not a high amount!) to these cards so they stay active.  This will also prevent getting a card cancelled on you which has been happening more frequent lately.

There are other factors included that you can’t really affect.  They involve a mix of what types of credit you have (such as credit cards, mortgages and car loans) and new credit.  When you add more finances to manage, it can sometimes have a negative impact on your credit.  Focus on what you CAN change and good luck!

Gary Miljour- Mortgage Lending for Tempe Arizona

Proceed with Confidence

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Gary Miljour Licensed Loan Originator NMLS#207208

Imagine yourself in your dream home, you’ve got everything you wanted including the white picket fence.  Now take a step back…how did you get there?  I will tell you one way of never getting into your dream home; bad credit.  Period.  The end.  If you have poor credit, you’ll never be able to carry out your dream of homeownership.  Some of you may be thinking that you have bad credit and you’ll never own a home.   Wrong.  There are steps you can take to make homeownership a reality.

So you’ve been behind on payments, creditors are reporting wrong.  I’ve heard them all.  Whatever it may be, you think the dream of homeownership has passed you by.  What you may not know is several companies exist to help repair your credit.  Some have charges up front and some charge a monthly fee, it just depends on the company.  You may think you cannot afford credit repair, but I say you can’t afford NOT to use a credit repair company.

It’s simple.  If you don’t have good credit, you can’t get your own home.  Why not take advantage of these companies and their expertise?  If you don’t know where to start, feel free to contact me with any questions or recommendations to get you closer to your dream home.

Gary Miljour- Mortgage Lending for Tempe Arizona

Proceed with Confidence

Follow me: 

BK-0907366

Sunstreet Mortgage, LLC NMLS#145171

Gary Miljour Licensed Loan Originator NMLS#207208

Increasing Buying Power-Understanding Credit

Cherry Creek Mortgage Company will be holding a free class on understanding the in’s and
out’s of credit scoring on May 20, 2009 at 4:00pm . This class will be held at
Cherry Creek Mortgage 1630 South Stapley Drive Ste. 100, Mesa, AZ 85204.

This class will be taught by Charlie Brandes with Advantage Credit. Charlie is an expert
speaker/instructor on this topic and travels the entire state of Arizona talking to
realtors, consumers and borrowers about the power of credit.

Charlie will be covering the following topics:

What is the best mix of credit to obtain the highest scores

The do’s and don’ts with credit for buying property

How degrogatory information will impact your credit and buying potential

How to increase your potential buying power with better credit scores

Plus Charlie will go over proven tips to help prevent fraud and identity theft.

If you would like to attend, please RSVP by emailing me.