Starting Your New Year With Financial Credit Goals

WHOO-HOO!!!!

Put Your Financial Goals In Play

It’s a New Year, and the clock has started ticking! I’m sure there are many of you who are ready to put your financial goals in focus and want to make a change. If your looking to buy a home this year, you may want to repair your credit, pay your debt down, or save for a down payment. Here are some tips to get you started!

 8 Helpful Tips

1. Using Credit Karma website to monitor your scores cannot help you.

Those scores are VANTAGE scores. You need FICO scores. Credit Karma may be free but they are a marketing site. They market their affiliates to you and they get paid when you sign up for certain cards they recommend.

2. FICO scores are used in 90% of lending decisions. 

3. There are a bunch of FICO scores:

FICO 8 is usually used for credit cards and personal loans.

To buy a house  you need:
Equifax Beacon 5 
Experian 2 
Transunion 4

*Download the Experian Credit Works app or The MyFICO app to get your mortgage scores if you’re serious about buying this year.*

4. They take all these scores and the MEDIAN SCORE (the middle score) is used to qualify and offer you a rate. 

For example your scores are 
Equifax Beacon 5 = 630
Experian 2 = 711
Transunion 4 = 657

The 657 is what underwriters will use to determine eligibility and offer a rate to you.

5. You need AT LEAST a 580 for FHA loan or a 620 for a conventional loan.

6. BUYING A HOUSE IS NOT ALL ABOUT YOUR SCORE.

DTI MATTERS

DTI is Debt to Income — how much your monthly expenses are vs how much you make a month.

Can you reasonably afford a house??? Now you wishing you didn’t get that Benz that’s killing your budget…LOL

7. Student loans kill the dream. If they’re in default you’ll be in a system called CAIVRS where all government debts that are delinquent are kept. You CANNOT get a government backed loan (VA/FHA/HUD) if you already owe the government.

8. Also if you have a large number of student loans (I’ve seen credit reports with $100k PLUS in student loans). If you’re not on IBR plan but should be, GET ON IT. Most lending guidelines require what’s reporting as your monthly payment be used which will help a great deal.

Summary

These are just some of the very basic things you need to know if your serious about homeownership.

Need Credit Help?

If you are serious about repairing or fixing your credit, for the New Year, Credit Corrector Solutions can get you started on the road to Better Credit! We assist with raising credit scores to help you meet your financial goals.

Call Us Today at 1-877-335-8865 or fill out our contact form on this website.

Join our Facebook group “Better Credit Community For helpful credit tips! or subscribe to our email list. 

https://www.facebook.com/groups/creditcorrectorsolutions/

“Like” our Facebook Page

https://www.facebook.com/creditcorrectorsolutions/

 

 



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