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Hi. My name is Austin Neimick and I am a Senior Mortgage Banker at Quicken
Loans. I am here today, to talk about the importance of credit and the effects
it has when applying for a mortgage.
So, to begin, credit simply can be defined as kind of a tool or measure
that companies, like our self, use to measure to determine how likely you are to
pay back a loan on time.
There's a lot of different factors that go into your credit and your credit profile.
Some of the main ones are the amount of credit card debt you have,
how consistent you are on the payments of your mortgage,
auto loans, student loans. There is also a section for public records,
such as, bankruptcies, foreclosures, charge offs,
judgments, that can have a derogatory effect on your score.
So, what is a good credit score? In today's lending environment,
anything over a 740 is considered excellent or platinum.
The average American has a credit score around 680 and we can even lend as
low as 580, in some cases.
So, why is credit important when applying for a home loan? It's very very important,
that your mortgage expert has an accurate up to date credit profile,
when quoting you a mortgage rate.
It's going to effect the exact program,
it's going to effect the exact interest rate,
it will also effect positive and negative pricing adjustments on your loan.
So, to get an accurate quote,
you need to have an up-to-date credit profile.
Now, as a consumer, it's very important that you know what is going on with
your credit world. There may be some small collections that you may not be aware
of, that pull your score down dramatically.
So, a very good website you can visit and it is free of charge is
quizzle.com, it's q-u-i-z-z-l-e dot com.
They will give you a free peek at your credit report.
It will also give you some advice and recommendation of how to get up to
that top level or that top tier.
Any other questions, obviously can be directed to your Mortgage Expert,
they'll be happy to elaborate further.
Thank you.