When you are ready to apply for a home mortgage loan, having a clean credit history is certainly important. However, there’s much more to the story than just this. The number and age of your accounts, the amount of debt you currently owe in proportion to your available limit, amongst many other factors play into the equation. It’s crucial to understand that your credit score is a major contributor to the interest rate you’re eligible for. The good news is once you have achieved a 740 score or higher, you will be considered A+ in terms of credit rating and therefore receive the best terms and conditions. If your credit score happens to be lower than 740 you might benefit from our credit score “what if” simulator. This allows us to put what if situations and scenarios into the credit scoring model in order to see what the affect would be on your score within 30 day increments. For example, we could try closing a credit card, reducing a balance on a specific debt, or even opening a new card, all of which will have an effect on your score. It’s a very valuable tool that could save you a lot of money in the long run and it’s free of charge.

Take advantage of a free copy of your credit report

Once a year, you are entitled to obtain a free copy of your credit report from each of the major credit reporting companies. Simply go to annualcreditreport.com to gain access to your report. Be sure to check it for errors such as inaccurate reporting of missed or late payments, collections, open/closed accounts, and the amounts owed. If you find a mistake, you may go to the credit bureau’s web site to report and/or dispute the error. You may also learn more at myfico.com.

Jason Sumner has 14 years of experience as a Mortgage Loan Officer and nearly 20 years total in the financial services field. He specializes in new home purchases including: conventional, FHA, 100% no money down USDA & VA loans, and down payment assistance programs for first time buyers. He is a graduate of Indiana University and resides in Bloomington with his wife and 3 ½ year old daughter, Lillian.