Q. How do mortgage
lenders use a credit report?
A. Your credit report is a critical part of your loan application. It
lists in detail your current and previous obligations as reported to
the credit bureau by the creditors. It is used to evaluate your mortgage
request by showing mortgage lenders how you have handled your credit
obligations in the past. If you would like to see your credit report,
you can request copies of it from any of the three national companies
that lenders use:
Q. What is a credit
A. A credit score is an indication of your credit history and measures
your ability to repay a debt in the future. It is a "track-record"
of your payment performance to date.
Q. If my credit
record is less than perfect, can I still buy a home?
A. Yes. Your credit doesn't have to be perfect to purchase a home. Many
people find themselves in difficult financial situations, often because
of illness, divorce, or temporary unemployment. If you can demonstrate
that the problem is in the past, and you have been able to re-establish
a good track record for a sufficient amount of time, you may be in a
good position to get a mortgage loan. There may be a reasonable explanation,
so speak to your lender honestly and openly about the situation. It's
important to remember that lenders don't just look at your past history,
but also at your ability and willingness to pay in the future.
Q. How long is credit information reported on my credit report?
A. Generally, information is reported for up to seven years, however
bankruptcy information can be reported for up to 10 years.
Q. If I have
a bankruptcy or foreclosure, can I still get a mortgage?
If bankruptcy or foreclosure was due to extenuating circumstances and
has been fully discharged for at least 2 years, and you have re-established
good credit, then you may be able to get a mortgage. Some examples of
extenuating circumstances include: death of a principal wage earner,
prolonged loss of employment for reasons beyond the borrower's control,
such as site closings, mergers, or reductions in workforce, or a long-term
illness, or disability not covered by insurance. If the bankruptcy or
foreclosure was due to financial mismanagement and has been fully discharged
for at least 4 years, and you have re-established good credit, then
you may be able to get a mortgage.
Q. Will one
late credit card payment or loan default disqualify me from getting
A. Late payments (especially those fewer than 30 days) should not automatically
disqualify you from getting a mortgage. Almost everyone at one time
or another has forgotten to pay a bill on time, or has had trouble making
a payment - mortgage lenders know this.
Am I entitled to credit information that contributed to my loan denial?
A. You are entitled to that information if you request it from the credit
bureau within 30 days after receiving a denial notice.
the other "Credit"
sections for more information on your credit report, what's on your
report and how to obtain a credit report.
Use our quote
form, a mortgage feature on California Mortgage & Home Equity
Loans, Co. to locate a lender in your area offering the mortgage
product that best suits your needs. The independent lender you select
will work with you to help find a low-cost mortgage that meets your
needs. Apply today!