Friday, December 20, 2013

What's Your Score?

Are you starting the pre-approval process for a home loan?  The first and most important thing to find out is what your score is.

Credit card companies and lenders rely on credit scores, which determine someone's chances to borrow money - and how favorable the terms will be. Scores range from 200 to above 800. Scores below 620 are considered risky; 720 and over are excellent.
There are five categories of scoring: payment history (35%); amount owed (30%); length of credit history (15%); new credit (10%); and types of credit (10%). Lenders receive your score and "reason codes," which are the keys to improving your score.

To improve your score:
Pay your bills on time. Reduce outstanding debt. Build up your savings. Don't fall for illegal schemes that help create a new credit identity.

Check your own score yearly by ordering reports from the three major credit scoring companies: Equifax (, Experian (, and TransUnion (
Notify the credit bureau of inaccuracies, along with copies of documents that dispute incorrect entries. Close accounts not in use. Request that late payments older than seven years be removed. Verify and update accounts and account numbers. Verify your address and Social Security number.

If you need a recommendation for a lender or are interested in talking to one of our Buyer Specialists about the home buying process, call The Puffer Team today, 828-771-2300.  Be sure to also check us out online,

Copyright 2013 Keller Williams® Realty, Inc. All information deemed reliable but not guaranteed.

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