Your Lake of the Ozarks Mortgage Lender: credit reports

Monday, February 12, 2018

5 Common Credit Report Errors to Watch For

When it comes to applying for a mortgage loan at the Lake of the Ozarks, your credit score and credit report play an important role in the approval process. In addition to getting approved, your credit score can also affect the terms of your loan. Unfortunately, credit report errors are quite common, therefore, it's important to review your credit report before applying for a home loan to make sure all the information is current and accurate. Keep reading to learn about some of the common credit report errors you should watch for.

1. Incorrect Personal Information.

The first thing you'll want to check on your credit report is that all the personal information is correct and current. Many people have very similar names and, therefore, their information can easily get mixed up. Ensure that your name is spelled correctly and that your middle initial and/or middle name is listed. Also be sure to review your address, employment information and your SSN.

2. Duplicate Accounts.

When reviewing your credit report, check for accounts that are listed more than once. Duplicate accounts make it appear like you have more open credit than you actually do. It also shows that you have more debt than you actually do. Review all the accounts on your credit report for accuracy, ensuring each one is only listed once and that all the accounts do in fact belong to you.

3. Old Bad Debts.

After 7 years, credit reporting companies are supposed to remove any bad debts from your credit report. Ensure that anything over 7 years old is no longer listed on your credit report. If you've ever filed for bankruptcy, those discharged debts should also be removed from your credit report. However, your bankruptcy will show on the credit report.

4. Debts from an Ex-Spouse.

If you are currently going through or recently obtained a divorce, be sure to remove your name from any joint accounts. This will prevent you from being liable for future debts. Check your credit report after the divorce is final to make sure no new debts from your ex-spouse have been added to your record. Notify the credit reporting companies if any information is incorrect and needs to be removed.

5. Incorrect Accounts.

There are a variety of situations that can result in incorrect accounts being listed on your credit report. One issue relates to identity theft, when someone uses your personal information to open a new credit account. Another issue is when a closed account is still being listed on your credit report. In addition to making sure there aren't any incorrect accounts, be sure to check for accounts that are incorrectly reported as late or delinquent. This can happen if a payment is applied to the incorrect account.

Make sure you report any errors on your credit report to the credit reporting agencies. If you notice discrepancies once you've already begun a mortgage application, be sure to communicate those errors with your mortgage lender at the Lake of the Ozarks. For more information about how your credit report and other factors can affect your Lake of the Ozarks home financing, give us a call at 573-746-7211.

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Michael Lasson

Senior Loan Officer

NMLS #: 493712

4655 B Osage Beach Parkway

Osage Beach, MO 65065

Direct: (573) 746-7211

Cell: (573) 216-7258

e-Fax: (866) 397-0318

Email: mlasson@fsbfinancial.com

Website: www.YourLakeLoan.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Wednesday, September 21, 2016

7 Things You Should Know About Credit Scores

One of the main factors in determining your eligibility for a mortgage loan at the Lake of the Ozarks is your credit score. While most people may know what a credit score is, they don't necessarily understand how they work. In today's blog, your favorite Lake of the Ozarks mortgage lender offers a few things you should know about credit scores.

1. Your Credit Report Is Different From Your Credit Score.

Your credit report includes details of your credit accounts, how often you apply for credit, debt collection accounts, etc. Your credit score is a 3 digit number that is figured based on those details of your credit report.

2. You Have More Than Just One Credit Score.

There are 3 different major credit bureaus, Equifax, TransUnion and Experian. Each bureau uses a different approach to determine your credit score. As a result, you have 3 different credit reports, with multiple credit scores. When a mortgage lender at the Lake of the Ozarks pulls your credit report, they will be provided with 3 credit scores, one from each bureau.

3. Your Credit Scores Are Based On 5 Core Factors.

Your credit score is based on the following factors: payment history, credit utilization, average credit age, account mix and inquiries. These factors are listed in order of importance, and therefore your payment history has the largest affect on your credit score.

4. Credit Scores Are Used For A Variety of Things.

Credit scores are factored into a lot of different situations. While your score can affect insurance costs and employment, the most common situations where credit comes into play is when you are applying for a home loan at the Lake of the Ozarks.

5. Not Everyone Has a Credit Score.

If you've never applied for or used credit, you won't have a credit history and therefore, won't have a credit score. Not having any credit history can make it just as hard to obtain a mortgage as having a low credit score because the lender doesn't have any facts to base whether or not you can pay back your loan on.

6. Checking Your Own Credit Will Not Impact Your Score.

You've probably heard that checking your credit can have a negative impact on your credit score. While there may be some truth behind that, checking your score yourself will not hurt your score. However, hard inquiries, like when a lender pulls your score for a loan or credit card, can have a negative impact on your score. Luckily, the effect is small and temporary.

7. You Can Always Improve Your Credit Score.

Just because you have a low credit score and maybe you can't get approved for a loan right now, doesn't mean it'll be that way forever. There are a variety of things you can do to improve your credit score over time. Check out our blog titled, "7 Tips for Building Your Credit Score."

If you have more questions about your credit score and how it can affect your Lake of the Ozarks mortgage approval, give me a call at 573-746-7211. I'm here to answer your questions and help you with all your financing needs. I'm committed to working with you every step of the way, for a smooth mortgage process!