Showing posts with label credit report. Show all posts
Showing posts with label credit report. Show all posts

About FICO® Scores

 


About FICO® Scores

CollapseWhat is a credit score?

A credit score is a number that summarizes your credit risk to lenders, or the likelihood that you’ll pay the lender back the amount you borrowed plus interest. The score is based on a snapshot of your credit report(s) at one of the three major credit bureaus—Equifax®, Experian®, and TransUnion®—at a particular point in time, and helps lenders evaluate your credit risk. Your credit score can influence the credit that’s available to you and the terms, such as interest rate, that lenders offer you.

CollapseWhat is a credit bureau?

A credit bureau, also known as a consumer reporting agency, collects and stores individual credit information and provides it to creditors so they can make decisions on granting loans and other credit activities. Typical clients include banks, mortgage lenders, and credit card issuers. The three largest credit bureaus in the U.S. are Equifax®, Experian®, and TransUnion®.

CollapseWhat are FICO® Scores?

FICO® Scores are the most widely used credit scores and are used in over 90% of U.S. lending decisions. Your FICO® Scores (you have more than one) are based on the data generated from your credit reports at the three major credit bureaus, Experian®, TransUnion® and Equifax®. Each of your FICO® Scores is a three-digit number summarizing your credit risk, that predicts how likely you are to pay back your credit obligations as agreed.

CollapseWhat it the highest credit score?

Most credit scoring models follow a credit score range of 300 to 850 with that 850 being the highest score you can have. However, there can be other ranges for different models, some of which are customized for a particular industry (credit card, auto lending, or insurance for example). While the majority follow the 300 to 850 range, there are some scores (e.g., FICO® Bankcard Score) that range from 250 to 900 and others that may use other score ranges. For more information on the different scoring models, view Understanding the difference between credit scores.

CollapseWhy do FICO® Scores fluctuate?

There are many reasons why your score may change. The information on your credit report changes each time lenders report new activity to the credit bureau. So, as the information in your credit report at that bureau changes, your FICO® Scores may also change. Keep in mind that certain events such as late payments or bankruptcy can lower your FICO® Scores quickly.

FICO® Scores consider five main categories of information in your credit report.

  • Your payment history
  • The amount of money you currently owe
  • The length of your credit history
  • New credit accounts
  • Types of credit in use

CollapseWhat are the minimum requirements to produce a FICO® Score?

In order for a FICO® Score to be calculated, a credit report must contain these minimum requirements:

  • At least one account that has been open for six months or more.
  • At least one account that has been reported to the credit reporting agency within the past six months.
  • No indication of deceased on the credit report (Please note: if you share an account with another person and the other account holder is reported deceased, it is important to check your credit report to make sure you are not impacted).

CollapseDoes a FICO® Score alone determine whether I get credit?

No. Most lenders use a number of factors to make credit decisions, including a FICO® Score. Lenders may look at information such as the amount of debt you are able to handle reasonably given your income, your employment history, and your credit history. Based on their review of this information, as well as their specific underwriting policies, lenders may extend credit to you even with a low FICO® Score, or decline your request for credit even with a high FICO® Score.

CollapseHow long will negative information remain on my credit reports?

It depends on the type of negative information. Here’s the basic breakdown of how long different types of negative information will remain on your credit reports:

  • Late payments: 7 years from the original delinquency date.
  • Chapter 7 bankruptcies: 10 years from the filing date.
  • Chapter 13 bankruptcies: 7 years from the filing date.
  • Collection accounts: 7 years from the original delinquency date of the account
  • Public Record: Generally 7 years

Keep in Mind: For all of these negative items, the older they are the less impact they will have on your FICO® Scores. For example, a collection that is 5 years old will hurt much less than a collection that is 5 months old.

CollapseAre FICO® Scores unfair to minorities?

No. FICO® Scores do not consider your gender, race, nationality or marital status. In fact, the Equal Credit Opportunity Act prohibits lenders from considering this type of information when issuing credit. Independent research has shown that FICO® Scores are not unfair to minorities or people with little credit history. FICO® Scores have proven to be an accurate and consistent measure of repayment for all people who have some credit history. In other words, at a given FICO® Score, non-minority and minority applicants are equally likely to pay as agreed.

CollapseHow are FICO® Scores calculated for married couples?

Married couples don’t share joint FICO® Scores; each person has their own individual credit report, which is used to calculate FICO® Scores, and isn’t impacted by their spouse’s credit history. However, married couples should be mindful of the potential impact of opening joint credit accounts. For example, if you get a new credit card in both spouses’ names, and there is a late payment on that account, the late payment will impact both individuals’ FICO® Scores.

CollapseHow can I access my credit report?

By federal law, you are entitled to one free credit report every 12 months from each credit reporting company, TransUnion®, Equifax®, and Experian®. Find them at annualcreditreport.com. Take advantage of this service annually to ensure the information on your credit report is current and accurate.



Impacts to FICO® Scores

CollapseWill closing a credit card account impact my FICO® Score?

It is possible that closing a credit account may have a negative impact depending on a few factors. FICO® Scores may consider your “credit utilization rate”, which looks at your total used credit in relation to your total available credit. Essentially, it measures how much of your available credit you are actually using. The more of your credit that you use, the higher your utilization rate and high credit utilization rates may negatively impact your FICO® Score. Before you close any credit card account, Wells Fargo recommends that you should first consider whether you really need to close the account or if your real intention is just to stop using that credit card. If you really just want to stop using that card, it may make sense if you stop using the card and put it somewhere for safe keeping in case of an emergency. It’s also important to note that length of your credit history accounts for 15% of your FICO® Score calculation. Therefore, having credit card accounts that are open and in good standing for a long time may affect your FICO® Score.

CollapseHow does refinancing impact my FICO® Score?

Refinancing and loan modifications may affect your FICO® Scores in a few areas. How much these affect the score depends on whether it’s reported to the consumer reporting agencies as the same loan with changes or as an entirely new loan. There are many reasons why a score may change. FICO® Scores are calculated using many different pieces of credit data in your credit report. This data is grouped into five categories: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%). If a refinanced loan or modified loan is reported as the same loan with changes, two pieces of information associated with the loan modification may affect your score: the new credit inquiry and changes to the amounts owed. If a refinanced loan or modified loan is reported as a “new” loan, your score could still be affected by the new credit inquiry and an increase in amounts owed,— along with the additional impact of a new “open date” which may affect the credit history category. In the end, a new or recent open date typically indicates that it is a new credit obligation and, as a result, may impact the score more than if the terms of the existing loan are simply changed.

CollapseHow do FICO® Scores consider loan shopping?

In general, if you are “loan shopping” - meaning that you are applying for the same type of loan with similar amounts with multiple lenders in a short period of time - your FICO® Score will consider your “shopping” as a single credit inquiry on your score if the shopping occurs within a short time period (30 to 45 day) depending on which FICO® Score version is used by your lenders.

CollapseWhat are the different categories of late payments and do they impact FICO® Scores?

A history of payments is the largest factor in FICO® Scores. FICO® Scores consider late payments in these general areas; how recent the late payments are, how severe the late payments are, and how frequently the late payments occur. So this means that a recent late payment could be more damaging to a FICO® Score than a number of late payments that happened a long time ago. Late payments are listed on credit reports by how late the payments are. Typically, creditors report late payments in one of these categories: 30-days late, 60-days late, 90-days late, 120-days late, 150-days late, or charge off (written off as a loss because of severe delinquency). Of course a 90-day late is worse than a 30-day late, but the important thing to understand is that people who continually pay their bills on time tend to appear less risky to lenders. However, for people who continue not to pay debt, and their creditor either charges it off or sends it to a collection agency, it is considered a significant event with regard to a score and will likely have a severe negative impact.

CollapseHow does a bankruptcy impact my FICO® Score?

A bankruptcy is considered a very negative event by FICO® Scores. As long as the bankruptcy is listed on your credit report, it will be factored into your scores. How much of an impact it will have on your score will depend on your entire credit profile. As the bankruptcy item ages, its impact on a FICO® Score gradually decreases. Typically, here is how long you can expect bankruptcies to remain on your credit reports (from the date filed):

  • Chapter 11 and 7 bankruptcies up to 10 years.
  • Completed Chapter 13 bankruptcies up to 7 years.

These dates and time periods refer to the public record item associated with filing for bankruptcy. All of the individual accounts included in the bankruptcy should be removed from your credit reports after 7 years.

CollapseHow do public records and judgments impact FICO® Scores?

Public records are legal documents created and maintained by Federal and local governments, which are usually accessible to the public. Some public records, such as divorces, are not considered by FICO® Scores, but adverse public records, which include bankruptcies, are considered by FICO® Scores. FICO® Scores may be affected by the mere presence of an adverse public record, whether paid or not. Adverse public records will have less effect on a FICO® Score as time passes, but they can remain in your credit reports for up to ten years based on what type of public record it is.

CollapseWhat are inquiries and how do they impact FICO® Scores?

Inquiries may or may not affect FICO® Scores. Credit inquiries are classified as either “hard inquiries” or “soft inquiries”—only hard inquiries have an effect on FICO® Scores.

Soft inquiries are all credit inquiries where your credit is NOT being reviewed by a prospective lender. FICO® Scores do not take into account any involuntary (soft) inquiries made by businesses with which you did not apply for credit, inquiries from employers, or your own requests to see your credit report. Soft inquiries also include inquiries from businesses checking your credit to offer you goods or services (such as promotional offers by credit card companies) and credit checks from businesses with which you already have a credit account. If you are receiving FICO® Scores for free from a business with which you already have a credit account, there is no additional inquiry made on your credit report. FICO® Scores take into account only voluntary (hard) inquiries that result from your application for credit. Hard inquiries include credit checks when you’ve applied for an auto loan, mortgage, credit card or other types of loans. Each of these types of credit checks count as a single inquiry. Inquiries may have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk.

CollapseHow does applying for new credit impact my FICO® Score?

Applying for new credit only accounts for about 10% of a FICO® Score. Exactly how much applying for new credit affects your score depends on your overall credit profile and what else is already in your credit reports. For example, applying for new credit may have a greater impact on your FICO® Scores if you only have a few accounts or a short credit history. That said, there are definitely a few things to be aware of depending on the type of credit you are applying for. When you apply for credit, a credit check or “inquiry” can be requested to check your credit standing.

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How Does Credit Scores, Down Payments, and Debt Ratio Affect Loan Approvals?




Credit score tracking is all the rage for personal finance-savvy consumers. With websites like Credit Karma, you can monitor your current score and keep an eye on irregularities in your line of credit.


But those aren’t the numbers used to gauge your credit-worthiness for a loan. Instead, banks rely on what’s known as the FICO score, an amalgamation of information about your ability to pay back credit cards, student loans, car debt and other forms of debt on time.


Here’s why you need a good credit score to buy a home: Credit scores impact the interest rate of your mortgage and could factor into whether you receive a conventional home loan (meaning that they are available/guaranteed through private financial institutions, or one of two government-backed entities, Fannie Mae or Freddie Mac).


You can visit annualcreditreport.com and get a report from one of the three major credit bureaus, Experian, TransUnion and Equifax. This check will not hurt your score, but it will give you an idea of how trustworthy you look to lenders.

If you think your credit is in good enough shape to begin working with a lender, you can ask the financial institution to check your credit. All hard credit checks from mortgage lenders within a 45-day-window are treated like one inquiry. That’ll allow you to compare two to three lenders to see who will offer a more competitive mortgage rate. FICO advises taking advantage of this by shopping around for rates within a 30-day-window.


FICO has updated its scoring method, and new scores will be out in the summer of 2020. But while those new numbers might be a shock, they won’t have much impact on home loans because mortgage lenders prefer to use older FICO scoring models to determine a borrower’s eligibility, NPR reported.


Kentucky FHA Mortgage loan credit score requirements:


The minimum credit score is 500 for Kentucky FHA loans. However please keep in mind these two things: 1. Lenders credit their own overlays to increase the credit score threshold, most being 620, and secondly, if your credit score is below 580, you would need 10% minimum down payment, and if the credit score is over 580, then you can go with the minimum 3.5% down payment.
Obviously, if you have a higher credit score, this will increase your chances of getting approved for a Kentucky FHA Mortgage and possibly better rates and closing costs options.


Kentucky VA Mortgage loans requirements :


VA does not have a minimum credit score requirement, but if the credit score is below 620 few lenders will do the loan, but I am set up with several Kentucky VA lenders where I have closed them down to a 560 credit score, but the borrower had good compensating factors such as large down payment, low dti ratios, good job history and good residual income with no previous bankruptcies or foreclosures.

I would suggest if your credit scores are below 580, I would suggest on working on getting the scores up before you applied for a VA mortgage loan.

A lot of lenders will do a rapid rescore which in some cases can increase your credit scores in as little as 7-10 working days.

The federal Department of Veterans Affairs (VA) guarantees loans for current and former members of the military and their families. VA loans provide very favorable terms to eligible borrowers and have limited qualifying requirements.

You can get a VA loan with no down payment so long as the home isn’t worth more than you pay for it, and there’s no minimum credit score to qualify. You also don’t have to pay for mortgage insurance, although you do have to pay an up-front funding fee of between .5% and 3.3% of the loan amount unless you fall within an exception for disabled vets or military widows or widowers.

Kentucky USDA Mortgage credit score requirements:


According to their guidelines, USDA will go down to a 580 credit score, but most lenders will want a 640 credit score. USDA uses an online system to underwrite the risk of the loan, and scores under 640 are very difficult to get approved.

Validating the Credit Score. Two or more eligible tradelines are necessary to validate an applicant’s credit report score. Eligible tradelines consist of credit accounts (revolving, installment etc.) with at least 12 months of repayment history reported on the credit report. At least one applicant whose income or assets are used for qualification must have a valid credit report score

The Rural Housing Service (RHS) operates under the federal Department of Agriculture to guarantee loans for rural home-buyers with limited income who can’t obtain conventional financing. The upside is that Kentucky USDA loans require no down payment. The downside is that they charge a steep up-front fee of 1% of the loan amount (which can be paid off over the entire loan term) and an annual fee of 0.35%.

Kentucky Fannie Mae and Freddie Mac Conventional Credit Score Requirements


These are considered “conventional loans’ that can be often be obtained with a 3% to 5% down payment. Of course, there are higher standards for conventional home financing. The most common minimum credit score requirement to get approved today is a 620 FICO. 

This type of score is typical for people that have high credit card balances or a few delinquent payments in their past. The general consensus on Freddie Mac and Fannie Mae loans in Kentucky is that a 620 score is the entry-point to qualify, but you will need thorough documentation of income with credit scores in the 620 to 640 range. You will have a better shot to be approved for a mortgage-backed by Fannie or Freddie with a 680-credit score and less strenuous underwriting.
Competitive Mortgage Rates and Fees

Monthly Mortgage Insurance Is Not Always Required

Ideal for First Time Home Buyers with Good Credit

Down Payments For Mortgage Loan Approval



Down payments are fairly straightforward: it’s the amount you pay out initially when agreeing to buy a home, and the more you put down, the less you have to borrow from a mortgage lender to continue gaining equity in a home.


The minimum down payment to get a mortgage is 3.5 percent of the home’s cost, although unless you put down 20 or more percent on a conventional loan (more on that later) or get a mortgage backed by a federal agency, you’ll be subject to paying for mortgage insurance, according to the Consumer Financial Protection Bureau.


Down Payment Closing Cost Assistance

KHC recognizes that down payments, closing costs, and prep​aids are stumbling blocks for many potential home buyers. Here are several loan programs to help. Your KHC-approved lender can help you apply for the program that meets your need.

Regular DAP
Purchase price up to $314,827 with Secondary Market.
Assistance in the form of a loan up to $6,000 in $100 increments.
Repayable over a ten-year term at 5.50 percent.
Available to all KHC first-mortgage loan recipients.
Affordable DAP
Purchase price up to $314,827 with Secondary Market.
Assistance up to $6,000.
Repayable over a ten-year term at 1.00 percent.
Borrowers must meet Affordable DAP income limits.



KHC is used for mostly applicants in urban areas of Kentucky that don’t have access to USDA or other government agencies to buy a home with no down payment.

A minimum of 3.5% down payment is required with this loan. Down payment assistance loans are available from $4500-$6,000, and are paid back over a period of ten years. They are typically offered to buyers with limited cash reserves and carry an interest rate of 1 to 5.5%. These loans can make a critical difference to buyers for whom the down payment is an obstacle. Buyers whose 3.5% down payment is less than the $6000 limit may choose to use the remainder of a down payment loan to pay closing costs, further reducing the amount needed to bring to closing.


Welcome Home $5000 Grant for Kentucky Homebuyers 2020

The Federal Home Loan Bank of Cincinnati (FHLB Cincinnati) has established a set-aside of Affordable Housing Program (AHP) funds to help create homeownership through a program called the Welcome Home Program. Welcome Home funds are available to Members as grants to assist homebuyers.

Welcome Home grants are limited to $5,000 per household, households are eligible only if the total household income is at or below 80% of Mortgage Revenue Bond (MRB) income limits, and funds are offered on a “first-come, first-served” basis. Other program requirements are identified below.


The debt-to-income (DTI) ratio is particularly key for lenders.



Debt consists of how much you currently owe such as student loans, car payments and credit card payments, compared to your gross monthly income (before taxes are taken out).

Fannie Mae, a federally backed company that purchases and guarantees mortgages for borrowers, allows a debt-to-income ratio of up to 45 percent, although it may be as high as 50 percent for people with phenomenal credit scores and incomes.

How lenders use your DTI for a Kentucky Mortgage Loan Approval

Kentucky Mortgage lenders typically use DTI (along with other variables) to determine whether or not you qualify for a loan, and to help determine your Kentucky mortgage rate. A high front-end DTI raises red flags with lenders because it is commonly associated with borrower default. In fact, reducing front-end DTI to reduce the risk of homeowner default was one of the main objectives of the loan modification programs introduced by the government in 2009.

There are specific limits for DTI that are used as cut-off points when evaluating borrowers. Current DTI limits for conventional conforming mortgage loans are typically 28% on the front end and 36% on the back end, though these limits are slightly higher for government subsidized Kentucky FHA loans.

While there are certainly other factors to consider when determining our eligibility for financing (e.g., credit score, etc.), your DTI is an important determinant that you should be aware of. By working to improve it, you can make yourself a better credit risk, and thus get more favorable treatment from lenders.

Two obvious ways to improve DTI are to increase your income and/or decrease your debt. Both are solid goals.

Call us today for a free pre-qualification for your next mortgage loan in Kentucky. We are available 7 days a week to take your call..502-905-3780 or email us at kentuckyloan@gmail.com


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Mortgage Loans In Kentucky for Conventional, FHA, and VA Mortgages for 2020

Mortgage Loans In Kentucky 
Kentucky Conventional Mortgages – These mortgages are not insured by the government, but they do conform to the government standards known as Freddie Mac and Fannie Mae. One thing to note about a conventional mortgage is that they require mortgage insurance unless you can put down at least 20%; once the loan’s principal balance drops below 78% of the home’s value, you no longer have to pay mortgage insurance.
  • Qualifying credit: 620-740
  • Loan terms: 15 or 30 years
  • 3% Down Payment minimum
Kentucky FHA Loans – An FHA loan is insured by the Federal Housing Administration, who guarantees a portion of the loan should the borrower default. This minimizes the lender’s risk and allows them to expand their borrowing parameters to the benefit of first-time homebuyers who might not have large savings or strong credit. Keep in mind that closing costs will be much higher for this type of mortgage and the home must meet rigorous appraisal standards.
  • Qualifying credit: 500 minimum with 10% down payment and 580 score higher 3.5% down payment 
Kentucky VA Loans If you are an active duty military personnel (or veteran in California and Hawaii), you may be eligible for this mortgage plan backed by the Dept. of Veteran Affairs. Income and credit requirements are significantly lower than other loans, making the approval process much easier, but be prepared to face longer closing periods than you would experience through a private lender.
  • Qualifying credit: No minimum Credit score for va loans
  • Outstanding debt---debt ratios usually around 45% on the backend 
  • Credit background-----looking at last 2-4 years mostly in regards to bankruptcies, foreclosures, short-sales,
  • Employment history--2 year work history not really the same job but same line of work and pay being consistent. 
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Why you don't need an 800 credit score for a Kentucky Mortgage Loan Approval







Your credit score — that sometimes mysterious number that reflects how responsible you are with your credit — plays a gigantic role in your overall financial life.
Pretty much any time you apply for credit, someone (or in some cases, a computer) will be looking at that number to determine if they are willing to extend that credit to you and, if so, at what rate. That applies whether you’re applying for a new credit card, a car loan or a mortgage.
Hopefully you know what your credit score is (if not, we’ll help you find out), but do you know if your credit score is good?
In this article, we’ll cover what money expert Clark Howard and others consider a good credit score, where your can track yourscore, and how to improve it if it needs work!



What is a good credit score?

First, it’s important to know that your FICO credit score (by far the score used by most lenders) is a three-digit number that can range from 300 to 850, with 850 being the absolute highest score you can achieve.
So, how do things break out along that range when it comes to “good” and “poor” scores? Here’s how credit reporting agency Experian sees it:




Credit score chart
Experian

As you can see, according to this chart, the majority of Americans have “Good,” “Very Good,” or “Exceptional” scores.

In fact, according to Credit.com, as of 2016 (the latest numbers available), the average FICO score nationally was 699. That was an all-time high!

But different creditors have different ideas about what makes a “good” credit score, and for that reason your ability to get credit and the rate you’re offered can vary from lender to lender. This is why some people aim for a score of 850 — something Clark says “you’re crazy if you obsess with.”

You don’t need to aim nearly that high.

“If you can get up to around a 760, you’re going to get the same benefits, the same offers, that someone who has an 840 score is going to get,” says Beverly Harzog, Credit Card Expert and Consumer Finance Analyst for U.S. News & World Report.

That said, if your credit score is currently in, say, the low 600s, 760 might seem a long way away. That’s still no reason to be discouraged!
There are other numbers that can make a huge difference in the offers you receive and the rates you can get on loans, Clark says:
“There are certain breakpoints where things get easier for you. One that’s really important is being around a 680. That’s a point at which people look at you differently than when you’re below that.”

You can also get free credit reports (which are more comprehensive than what you get with Credit Karma or Credit Sesame) from all three major credit reporting bureaus once a year at AnnualCreditReport.com.

How can you improve your credit score?

To improve your credit score, you should address each one of the factors that goes into calculating your score individually. According to MyFICO.com, those factors are:




Credit score factors
MyFICO.com

Payment History

As you can see from the graphic, the single most important factor is your payment history. That means that not paying your bills on time can do serious damage to your credit score. Even if you’ve had some late payments in the past, you can improve your score going forward by paying each and every bill on time.

Amounts Owed

The second most important factor is the amount you owe on your credit lines. This is calculated as a percentage: the amount you owe divided by the total amount of credit you have available. It’s best to keep this under 30% — even better if you can keep it under 10%.
So, if your total credit line (between all of your credit cards and other loans) is $10,000, it’s good to owe less than $3,000 and great if you owe less than $1,000.
Length of Credit History
The next most important factor is your length of credit history. This is determined by the date you opened your earliest credit account that remains open today. Since you can’t go back in time and open an account any earlier, the most important thing you can do in this area is make sure you don’t close any of your oldest accounts.

New Credit and Credit Mix
Finally, accounting for 10% each of your credit score are New Credit and Credit Mix.
New Credit means accounts that you either open or apply for that result in what’s called an “inquiry” to your account. Almost any time you apply for credit (whether you are approved or not) your score will drop a bit. It usually doesn’t take long to recover, but the important thing to remember here is to only apply for credit you really need. If you apply for every card offer you receive, your score will suffer.
Credit mix refers to the different types of credit you have. Again, this one is not a huge deal, but someone with credit cards, a mortgage, and a car loan will general be judged more favorably than someone who just holds credit cards


Full article link below


https://clark.com/credit/good-credit-score/





American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
Louisville, KY 40223
Company ID #1364 | MB73346

Text/call 502-905-3708
kentuckyloan@gmail.com
http://www.nmlsconsumeraccess.org/
If you are an individual with disabilities who needs accommodation, or you are having difficulty using our website to apply for a loan, please contact us at 502-905-3708.
Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916http://www.nmlsconsumeraccess.org/
-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.

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CREDIT RULE CHANGES FOR KENTUCKY HOME BUYERS FOR GETTING A MORTGAGE LOAN WITH COLLECTIONS ON CREDIT REPORT







CREDIT RULE CHANGES FOR KENTUCKY HOME BUYERS FOR GETTING A MORTGAGE LOAN WITH PREVIOUS COLLECTIONS ON CREDIT REPORT


On the 8th of June, there will be changes on how your credit is reported to the main credit bureaus for experian, equifax and transunion.
Changes include:

**Collections that aren’t at least 180 days old will be rejected by the 3 major credit bureaus. You will now have time to pay them off before it is even reported.
**Medical collections will no longer show on credit reports as long as it is being paid (through either you or insurance).
**Collection accounts that have not been updated in six months or more will not be factored into scores.
**Any collection that did not result from a contract or agreement to pay by the consumer, will be removed.



-- 
http://www.emailmeform.com/builder/form/0bfJs9b6bK8TGoc6mQk9hIu








Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.
10602 Timberwood Circle 
Louisville, KY 40223
Company NMLS ID #1364


Text/call:      502-905-3708
fax:            502-327-9119
email:          kentuckyloan@gmail.com












Fill out my form!
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Credit Score Information for Kentucky Mortgage Loan Approvals






Credit Score Knowledge Quiz Information for Kentucky Mortgage Loans
 Credit scores are taking an even more important role in qualifying for a Kentucky FHA, VA, Rural Housing and Fannie Mae mortgage today, which makes it vital to maintain a good credit history. See how much you know about credit scores with our Credit Knowledge Quiz and what you need to focus on to better your score.

  1. Question 01

    A credit score is:


    • a. A three-digit number summarizing the state of your credit
    • b. An alphabetical score grading your creditworthiness
    • c. A numerical score reporting how much money you owe

  2. Question 02

    What is the number-one contributing factor to a good credit score?


    • a. Length of credit history
    • b. Amounts you owe
    • c. Payment history

  3. Question 03

    Does each consumer have just ONE generic credit score?


    • a. Yes
    • b. No
    • c. Don't Know

  4. Question 04

    Your credit score affects?


    • a. Whether you can get a loan
    • b. Your interest rate
    • c. Both A and B

  5. Question 05

    Who collects the information on which credit scores are most frequently based?


    • a. FICO and VantageScore
    • b. Three main credit bureaus – Experian, Equifax, and TransUnion
    • c. Individual lenders
    • d. Federal government

  6. Question 06

    Lenders look at credit scores when deciding whether to extend which type of credit?


    • a. Credit cards
    • b. Mortgages
    • c. Loans
    • d. All of the above

  7. Question 07

    How important is it to check the accuracy of your credit reports at the three main credit bureaus?


    • a. Very Important
    • b. Somewhat Important
    • c. Not Very Important
    • d. No Big Deal

  8. Question 08

    Which of the following actions helps a consumer raise a low score or maintain a high one?


    • a. Make all loan payments on time
    • b. Avoid opening several credit card accounts at the same time
    • c. Use a credit card keeping the balance under 25% of the credit limit
    • d. All of the above

  9. Question 09

    After paying off a high-interest credit card, you should:


    • a. Continue using it occasionally
    • b. Close the account
    • c. Use the full amount of available credit every month

  10. Question 10

    Which of the following does a credit score MAINLY indicate?


    • a. Knowledge of consumer credit
    • b. Amount of consumer debt
    • c. Risk of not repaying a loan
    • d. Financial resources to pay back loans

  11. Question 11

    How long can negative items on your credit history impact your score?


    • a. 1 year
    • b. 3 years
    • c. 5 years
    • d. 7 years

  12. Question 12

    Are missed payments a factor used to calculate a credit score?


    • a. Yes
    • b. No
    • c. Maybe

  13. Question 13

    Which of the following is NOT considered when calculating your FICO score?


    • a. Your payment history
    • b. The types of credit you are using
    • c. The amount of debt you owe
    • d. Your income

  14. Question 14

    Applying for credit cards in order to just receive a free sign-up gift (t-shirt, mugs, etc.) has no impact on my credit profile?


    • a. True
    • b. False

  15. Question 15

    Is marital status a factor used to calculate a credit score?


    • a. Yes
    • b. No
    • c. Maybe

  16. Question 16

    Does a cell phone company use a credit score to decide whether a person can buy a service and/or what price they'll pay?


    • a. Yes
    • b. No
    • c. Maybe

  17. Question 17

    Does a mortgage lender use a credit score to decide whether a person can get credit and what interest rate they'll pay?


    • a. Yes
    • b. No
    • c. Maybe

  18. Question 18

    Does a landlord use a credit score to decide whether a person can rent a property and/or what price they'll pay?


    • a. Yes
    • b. No
    • c. Maybe

  19. Question 19

    Does an electric utility use a credit score when establishing service for a consumer?


    • a. Yes
    • b. No
    • c. Maybe

  20. Question 20

    Your credit card company just increased the spending limit on your card. Will this help or hurt your credit score?


    • a. Help
    • b. Hurt

  21. Question 21

    In regards to a married couple purchasing a home, the mortgage lender uses which credit score when more than one borrower is applying together?


    • a. The highest score between both people
    • b. The lowest middle score between both people
    • c. The average of all scores
    • d. The median score between both people




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Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.
10602 Timberwood Circle 
Louisville, KY 40223
Company NMLS ID #1364


Text/call:      502-905-3708
email:          kentuckyloan@gmail.com



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Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant's eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant  Equal Opportunity Lender. NMLS#57916 http://www.nmlsconsumeraccess.org/

-- Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification.



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