Thinking about your credit score probably isn’t part of your everyday life. You probably don’t drive to work wondering if it’s risen lately, browse the grocery aisles inspired to run a credit check, or contemplate FICO 720 every time you take your dog on a walk. We’re sure there are much more exciting things you think about.
Unless you are shopping for a Smith Mountain Lake Home
Whether you’re shopping at beautiful SML or anywhere, your credit score suddenly becomes vitally important, and it’s all you can think about. Besides the beauty of the area, of course.
A great local real estate agent like Deb Beran can help you learn more about credit scores, and recommend financial and loan professionals to talk to as well. But if you’re looking for a quick tutorial to get you started, here’s our brief rundown.
The Three Common Credit Agencies
The largest national consumer credit reporting agencies are Equifax, TransUnion and Experian. A mortgage underwriter will likely use one or more of these companies to gather your credit history and scoring. Each agency uses a certain formula to calculate where you’re at on a scale of about 300 – 850.
Your credit score involves a combination of:
- How many lines of credit you have open, including mortgage loans, auto loans, credit cards and store cards
- The amount of credit you’re using in your open accounts.
- Late bill payments or delinquent accounts.
- Previous loans or debts.
- Prior foreclosures, short sales, liens in lieu of foreclosures, collections or bankruptcies.
Basically, a credit report estimates of how good you are with any credit you’ve used to the point it’s calculated. Lenders, banks and credit agencies want to know if you’ll use their loan wisely, if you’re good at paying off a debt or if you tend to miss payments. If you’re considering buying a home at Smith Mountain Lake, a regular credit check can help you have time to fix any errors, or make up for a season of negative hits before you need your score to get a loan.
If you’d like to know how to be prepared to purchase a home at Smith Mountain Lake, Deb Beran is here to help, whether it’s talking financial readiness or which part of the community is best for your family. Let us know what you’d like to learn more about by contacting our friendly staff today.