Tinkering: Mixing Your Business & Your Credit

As we’ve bumped into when talking about your credit before, there’s even more information on credit that the savvy self-employed homebuyer needs to be aware of and it’s time we took a deeper dive on a few of those items.  If you are self-employed you may think that your company is a separate entity from yourself and likewise assume the business’s credit standing is completely separate as well, and why shouldn’t you?  It seems logical; it’s plain common sense— Right? Your business probably has a separate bank account, debt in the company’s own name, and may even have a separate tax ID number and file a separate tax return.  So, from the outside it can seem as though your business’s credit standing should have no impact on you personally, but this isn’t always the case.  Credit and lending don’t always go the route of common sense; they follow the law, regulations, and guidelines.

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How to Make Sure Your Credit is Ready for your Dream House

Last time we talked, you and I looked at the basics of credit, that mythical, mysterious credit score, what impacts it, and why it’s so important to creditors when making a decision to lend you money –  aka extend you credit.  It is said that knowledge is power, but being armed with this new found credit knowledge is no good if you don’t know how to use it.  So today let’s talk about a few steps that you can take before applying for a mortgage, or any other loan, that potentially increase your chances of being approved and, quite possibly, could save you a significant amount of money in interest, mortgage insurance and even homeowner’s insurance.  myFICOTM reports that your credit score dropping by 20 points (from a 760 to a 740) would cost you $12,183.  If it went down to a 630, they report that would cost you, GULP, $90,955 more.  Anyone have any spare change hanging around? What can you do to prevent overpaying for your home without even knowing about it?  It’s pretty simple really. It just takes a little elbow grease and some advanced preparation. It’s 3 easy steps. Let’s get started.

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ARE YOU MORE THAN JUST A NUMBER? Credit Scores and Credit for Beginners

As a mortgage lender, I have the unique opportunity of getting to know a variety of people.  They, just like you, have a story to tell.  In the world of finance, that story often begins and ends with a number.  That one number that can make all the difference in whether you’re able to buy your dream home.

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