Credit Everything to Know

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Post on 13-Apr-2017




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<p>PowerPoint Presentation</p> <p>Credit 101</p> <p>Everyone has 3 Credit Scores : Transunion, Experian, Equifax</p> <p>* For home purchases the lender throws out the top score and the bottom score (not an average)</p> <p>* Many companies do not report to all 3 bureaus This is the reason the scores are different</p> <p>* Each credit company puts different values on positives and negatives Another reason the scores are different</p> <p>* The credit bureaus are PRIVATE BUSINESSES They are not part of the government</p> <p>BASIC Credit Requirements to Buy a HouseFHA = 620 (yes there are programs lower but its rare)Conventional = 680 No lates in the last 12 months (and anything in the last 24 months will need explanation)Collection limitsNo JudgmentsNo Tax LiensMust not be delinquent on student loans (repayment or deferment is fine)</p> <p>4 Causes of Bad CreditDivorce</p> <p>Loss of Job (or failed business)</p> <p>Medical</p> <p>Stupid things we do when we are 18</p> <p>Common Misconceptions on CreditI paid off my car (house, student loans, ect) so my credit score is going to go up. FALSE Those negatives are all going to fall off after 7 years. FALSEMy wife (husband) got the house (car, cc, ect) in the divorce so that is not my problem. FALSEI just co-signed for the car, I dont make the payments so it doesnt count against me: FALSEI pay cash for everything so my credit is great: FALSEI will just file Bankruptcy and it will all go away: FALSEI cant get credit at Best Buy (Lowes, Home Depot, ect) so there is no way I can buy a house: FALSEI just got a new car so my credit is good enough to buy a house: FALSEI pulled my own credit online and it was 650 so I will have no problem with the lender: FALSEI am paying a credit repair company so it is all going to go away: FALSE</p> <p>What to look for when leasingAre the negatives old or new?When was their last late payment?Do you see a pattern?How much debt do they have?Is what they told you true?Judgements?Score does not always define their credit worthiness for a rental</p> <p>The Ten Commandments when Applying for a Mortgage 1. Thou shalt not change jobs, become self-employed or quit your job2. Thou shalt not buy or lease a car, truck or van (or you may be living in it)3. Thou shalt not use credit cards excessively or let current accounts fall behind4. Thou shalt not spend money you have set aside for closing5. Thou shalt not omit debts or liabilities from your loan application6. Thou shalt not buy furniture or any larger purchase7. Thou shalt not originate any inquiries into your credit8. Thou shalt not make large and/or cash deposits without checking with your loan officer9. Thou shalt not change bank accounts10. Thou shalt not co-sign a loan for anyone</p> <p>Thank You!!!</p>