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http://www.youtube.com/watch?v=D6pymHcjNqgendofvid
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Hi my name is Austin Niemiec, I'm a Senior Mortgage Banker at Quicken Loans and I'm here today to talk about the importance of credit and the effects it has on applying for a mortgage.
So to begin, credit simply can be defined as a tool or a measure that companies like ourselves use 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 your payments in your mortgage, auto loans, student loans and there's also a section for public record, such as bankruptcies, foreclosures, charge-off judgments that can have a derogatory effect on your credit score.
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 of around 680 and we can even lend as low as 580 in some cases.
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 affect the exact program, it's going to affect the exact interest rate, it will also affect positive and negative pricing adjustments on your loan. So, to get an accurate quote, you need to have an up-to-date credit profile.
As a consumer, it's very important that you know what's going on in your credit world. There may be some small collections that you may not be aware of that pull your score down dramatically. There's a very good website you can visit, and it's free of charge, is Quizzle.com. It will give you a free peek at your credit report, it will also give you some advice and recommendations of how to get up to that top level or that top tier.
Any other questions can be directed to your mortgage expert, they'd be happy to elaborate further. Thank you.
So to begin, credit simply can be defined as a tool or a measure that companies like ourselves use 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 your payments in your mortgage, auto loans, student loans and there's also a section for public record, such as bankruptcies, foreclosures, charge-off judgments that can have a derogatory effect on your credit score.
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 of around 680 and we can even lend as low as 580 in some cases.
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 affect the exact program, it's going to affect the exact interest rate, it will also affect positive and negative pricing adjustments on your loan. So, to get an accurate quote, you need to have an up-to-date credit profile.
As a consumer, it's very important that you know what's going on in your credit world. There may be some small collections that you may not be aware of that pull your score down dramatically. There's a very good website you can visit, and it's free of charge, is Quizzle.com. It will give you a free peek at your credit report, it will also give you some advice and recommendations of how to get up to that top level or that top tier.
Any other questions can be directed to your mortgage expert, they'd be happy to elaborate further. Thank you.
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