December 16, 2010

Preparing to buy a home in Walworth County? Let’s check your credit report & FICO Score

Posted to Debbie Cobian

As the New Year approaches, it’s the perfect time to get your finances in order.  There are some great on-line resources to help you get your Annual Credit Report free of charge!  I checked mine this morning and was able to see a history of all of my credit card and mortgage payments, and make sure none are showing a history of late payments, and check the balances and credit remaining.  In order to get a FICO score, both websites I checked wanted either a one time fee or a credit card to sign up for a monthly report that you could cancel after a trial period.   

Your FICO score (named for Fair, Isaac and Company, the business that develops the most widely used credit scoring formulas), is simply a numeric summary of your credit history compiled by the three major credit bureaus-Equifax, Trans Union, and Experian. The formula looks at such things as your outstanding balances, total available credit, late payments, and the age of your accounts.

FICO scores range from 300 to 850 points.  To qualify for the best loan rates, borrowers generally need scores above 760. Consumers with scores below about 620 will pay significantly higher rates and fees to obtain a loan.

I recommend checking www.annualcreditreport.com every January.  There are links to the three major credit bureaus to contact them to correct any errors you may find. 

After checking your credit report for accuracy, contact a local lending institution to get pre-qualified for a mortgage. The lender can tell you your actual FICO score and let you know the maximum amount of loan you are qualified for, how much money down you’ll need, and what to expect for closing fees and monthly payments.  I’m happy to refer you to a few of my favorite local lenders to help in the pre-qualification process.  

Another fun way to keep track of all of your daily finances is with a App for your smart phone or online resource such as Mint.com or Pageonce. Both are websites that you set up to track your banking, credit card and personal information.  They will send you immediate notification of a large credit card purchase, due dates of your utility or credit card payments and you can check the daily balances of your accounts all at one convenient location.   Pageonce even keeps your Facebook, Netflix and email accounts all in one place.  

Click here for the latest edition of the Keefe Magazine where you can browse our current inventory of homes for sale.  With a pre-approval letter in hand, there are great deals to be found. Give me a call to let me know what properties you’d like to take a look at in the Lake Geneva Area!

Debbie Cobian
Keefe Real Estate

Posted by:  Debbie Cobian

Tagged With: buying a home, credit report, debbie cobian, fico score, new year and walworth county