Credit Ratings

Your credit report is an important factor in the mortgage lending decision. We have provided information about credit reports and credit guide scoring used in conventional financing. If your credit is not perfect, there is a sub-prime lending market for individuals with imperfect credit.

Online credit reports

We understand how important your credit is to you. One way to protect your credit is to review your credit report periodically to ensure it's accuracy. We offer easy online access to your report via ConsumerInfo. Simply select the icon below and choose one of the following options for a nominal fee.

How to correct errors

You have the right, under the Fair Credit Reporting Act, to dispute the completeness and accuracy of information in your credit file. When a credit reporting agency receives a dispute, it must reinvestigate and record the current status of the disputed items within a "reasonable period of time," unless it believes the dispute is "frivolous or irrelevant."

If the credit reporting agency cannot verify a disputed item, it must delete it. If your report contains erroneous information, the credit reporting agency must correct it. If an item is incomplete, the credit reporting agency must complete it.

Credit guide scoring

In a nutshell, credit scoring is a statistical method of assessing the credit risk of a loan applicant. The score is a number that rates the likelihood an individual will pay back a loan. The score looks at the following items:

• Past delinquencies
• Derogatory payment behavior
• Current level of indebtedness
• Length of credit history
• Types of credit
• How often credit is applied for
• Number of credit inquiries

Credit history can affect your mortgage loans

Many home buyers are very worried about this issue but don't need to worry about the effects of their credit history. However, you can be better prepared if you get a copy of your credit report to review before you apply for your mortgage. That way, if there are any errors you can take steps to correct them before you make your application. If you have had credit problems, be prepared to discuss them honestly with your mortgage lender -- and come to your application meeting with a written explanation. Responsible mortgage lenders know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected, and your payments have been on time for a year or more, your credit will probably be considered satisfactory.

Credit reporting agencies
We have listed the addresses, phone numbers, web sites for the three major credit repositories: