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Julie Parrish Realty

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CREDIT RATINGS AND SCORING

Lenders use credit reports to assess risk when making loan decisions. There are three national credit repositories that lenders use to obtain your credit history. The three companies are Experian, Equifax and TransUnion. It is advisable to periodically check your credit report for errors. Checking your credit report for accuracy can prevent loan problems created by poor credit scores that are caused by inaccurate or duplicate accounts in your file.

In addition to a credit report these companies also report a credit score to the inquiring mortgage company. The scores are part of the risk assessment lenders use to base their decision on when granting you a loan. The scores are calculated by copyrighted mathematical formulas that assign numerical weight to various aspects of your credit history. The portions of your file used in scoring and the weight they are usually given is listed below.


Credit lenders use different scores when assessing risk for different types of credit like a credit card vs. a mortgage. You will have a credit score if the following conditions are in your file.


The meaning or risk level associated with the credit agency scores are assigned by the mortgage lender.

***When planning to purchase a home you should not start applying for new credit or incurring new debt. Don't run out and start buying furniture and appliances on credit before you have bought your home and closed the loan.

If you have questions about the loan process, e-mail me at jp@julieparrishrealty.com.

Contact Us www.julieparrishrealty.com
919.489.9694 229 Forestwood Dr. Durham, NC. 27707