CREDIT and Buying a Home

CREDIT ISSUES?!

Lenders look at your credit score to determine the “risk” of lending you money, as a basis of if you pay your bills and if they are paid on time.
From here on out, if you are wanting to purchase a home, it is imperative you pay your accounts on time.

There are different scoring models – FICO and VANTAGE.
Mortgage industry uses FICO, further the mortgage scoring model is different from credit cards or for cars. This is why the credit score I run most likely will be different from what you may run.

There are THREE credit scoring – experian, equifax and transunion. When applying for a mortgage, lenders will use the score that is in the middle. For example experian 623, transunion 655, equifax 645 — lenders would use 645

If you have a co-borrower, lenders will use the the LOWEST MID SCORE. For example:

Joe – experian 623, transunion 655, equifax 645
Jane – experian 723, transunion 755, equifax 745

Lenders will use Joe’s credit score of 645

FREE CREDIT REPORT
To get your reports there are three ways to get them

1. Order your three reports by call 1-877-322-8228 reports will be mailed to you
2. Go to www.annualcreditreport.com you may see and print all three reports

FREE CREDIT SCORES

To get you scores there are three websites you to go. Print out a score from each site.

1.   www.creditkarma.com
2.   www.quizzle.com
3.   www.creditsesame.com

CREDIT REPAIR: There are many credit repair agencies, in my experience they CAN help, however, ask for recommendations from people you know that have used them, interview them before you sign up, you can contact me for my recommendations.

NOTE ON DISPUTES: Fannie Mae, Freddie Mac, FHA, VA, and USDA have updated their qualifying guidelines requiring disputed credit accounts be removed, lifted, or updated to report as “resolved“, PRIOR to a lender running your application through the system, otherwise it may not approve your loan.

It is important for you to be keep good current credit tradelines current and up-to-date, and if you do not have any tradelines, follow steps below “credit repair diy”

***CREDIT REPAIR – DIY:***

  • Start with a BUDGET. Here’s one to download click  here.
  • Incorrect Accounts: If you see incorrect items on your credit report, you have the right to dispute these items and get them removed, and I highly encourage you to do this ASAP.
  • PAY ON TIME: It is so important to pay any credit cards or loans on time.
  • COLLECTION accounts – dispute any that are incorrect, call and see if you can settle on an amount if you pay in full, pay it and get the proof there is no longer a balance, ask them to DELETE.​
  • PAYMENT HISTORY: Keep open the oldest credit cards that are good and current, pay down the balance.
  • Late Payment Accounts: find out when the late payments will fall off? Is there something that can be done to get them to remove those late payments from your credit report? Perhaps speak to the credit repair specialist on ways to get those removed. Late payment affect your credit score significantly.
  • REDUCE DEBT: If you are unable to pay off, pay them down to where they only have a 25% balance of the credit limit. For example – credit limit is $1000 balance should be no more than $250.00. In most cases, when paying off debts, make sure there is a tiny balance left on revolving debt (credit cards).
  • BUILD GOOD CREDIT: Go to your bank and request a secured credit card. Put small balances on that and pay off most of the balance every month, keeping a small balance – for example – $500 secured credit card, use it for your gas on your car $100 for the month, when you get the bill pay off $75 of it but keep $25 balance. Do this for at least 90 days or more. This shows you will pay on time and keep a low balance. A good way to increase your score.
  • ***Vystar Credit Union has recently started a fantastic secured credit program, give them $500 and they open an installment line of credit AND a secured credit card. As you pay these it will show TWO lines of GOOD credit, which will help you boost your credit.

    **Experian BOOST – Experian Boosts helps consumers take control of their financial lives, by giving you credit for the bills you;re already paying on time (rent, utilities etc). It’s FREE, here’s the link to begin: https://www.experian.com/lp/boost-america.html

    **Simple Bills Credit Reporting: Reporting your SimpleBills’ payment history is a great way to add another “trade line” to your credit report and build credit without having to apply for a loan or get a credit card. The better your credit, the better the interest rate will be for big purchases in the future. https://www.simplebills.com/credit-reporting/

    **Rent Reporters – Get credit for paying your rent on time to BOOST your credit score! Sign up, rent payments are verified, gets reported to Transunion and Equifax. Start here: https://www.rentreporters.com
  • STUDENT LOANS: If you have student loans, these MUST be paid, these will never go away. If you have not made payments when you were supposed to, they will show LATE, and it affects your credit score significantly. Student loans MUST be paid back, in most cases even if they are in deferment or forbearance 1% of the total loan amount WILL have to be used in your debt calculation. There are several repayment plans: income driven, graduated repayment, extended repayment and more. Your best bet is to contact them and apply. The BEST scenario (I did this myself) is to consolidate your student loans into ONE so you’re making only ONE PAYMENT.  If you are making payments, and need to skip a month you can suspend payments. Go to their website and start the process: https://myfedloan.org/
  • Do not do any credit inquiries

​PAYING OFF DEBT:
***If you want an awesome way on how to pay off debt? I highly recommend the debt snowball method by Dave Ramsey.**starting at the smallest debt to the biggest. Pay the most you can on the smallest card, and the minimum on the others, once that one is pd off add that balance to the minimum balance of the next smallest, along with minimum on the others, and so on.



~~Solutions. Results. Reliable~~
Mortgage Lender serving Palm Coast, FL and surrounding counties
.  

Danielle Desousa
Mortgage Loan Originator
NMLS #1649268
www.ddesousa.com
Hours: Mon-Fr 8a-6p (hours may vary)
Click here for Palm Coast, FL info such as neighborhoods, communities, condos and more!
First Time Home Buyer?: check out this facebook group
Helpful info on getting prequalified on my blog.
New to the area? Check out this video.
  

    
ASK ME ABOUT FREE PET ADOPTIONS!

Closing Costs: https://ddesousa.com/closing-costs-what-are-they/

Credit & Buying a Home: https://ddesousa.com/credit-and-buying-a-home/

First Time Home Buyers: How to Purchase Part 1: https://ddesousa.com/part-1-first-time-home-buyers-florida/

First Time Home Buyers: How to Purchase Part 2: https://ddesousa.com/part-2-first-time-home-buyers/

First Time Home Buyers: Down Payment Assistance: https://ddesousa.com/how-can-i-buy-a-home-part-3-assistance-programs-palm-coast-fl/    

Loan Programs More: https://ddesousa.com/how-can-i-buy-a-home-part-4-loan-programs-palm-coast-fl  

More on Interest Rates: https://ddesousa.com/the-down-low-on-interest-rates/

Pet Friendly Lender

Danielle Desousa is originally from beautiful northern Michigan, but has lived in Daytona Beach and Palm Coast Florida since 2000. She is a graduate of Daytona State College with a bachelor’s degree in Business Management and has more than 17 years of experience in the real estate and mortgage industry. As a mortgage loan originator, she uses her experience and true entrepreneurial spirit to help clients succeed in their goals as well as to bring an enhanced quality of life to families and the community. Danielle is married to Paul, and together they have one son. She is also an avid pet lover and, in her free time, enjoys going with her family (including her doggies) camping and exploring areas in their travel trailer. Danielle is passionate about her community and giving back. She is a huge advocate of Flagler Humane Society, and is a committee member of the Flagler Humane Society thrift store, and an affiliate of Young Professional Network of Flagler County Association of Realtors. Danielle is a mortgage loan originator who thrives on solutions, results, and reliability. She serves Palm Coast, FL and the surrounding counties. Call, text, or email Danielle with any questions you may have or to schedule an appointment. FLAGLER PET-FRIENDLY LENDER! As a lifelong animal lover, volunteer, and a "mom" of many pets over the years, I know the amount of love an animal brings to a family. Therefore, I feel there is no better way to celebrate your new home than by adopting a pet to make it complete. Contact me today for more information about local shelter PET ADOPTIONS!

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