Thursday, May 30, 2013

Helena Talbot's blog - 5 Factors That Effect Your Credit Score

Your credit score is one factor that will control a big portion of your life.  That little three digit number that can cost you money or save you money.  Needless to say,  it is very important that you understand what factors go into how the credit bureaus decide what your credit score will be.

There are three main credit reporting agencies:  TransUnion, Experian, and Equifax.  Your credit score is a reflection of your debt and payment history.

Here are five things that will affect your credit score.

1.  A variety of credit.  Creditors want to see that you have a history of different types of credit.  Such as credit cards, installment loans, and mortgages.

2.  How much debt you have.   The more debt you have the more of a risk you are to a lender.  Therefore, always try to pay down or pay off your debt to make yourself less of a risk to a lender.  This will make it easier for them to approve your loan and offer you a lower interest rate.

3.  What is your payment history.  It is very important that you pay all of your bills on time.  This means everything from your utility bills to your credit cards.  Everything!  Late payments will lower your credit score.

4.  How old is your current credit.  Whatever you do - do not open any new lines of credit, no matter how small they are, if you are getting ready to start looking for a home.  If you do, this tells a lender that you may be spending too much, too fast and they will lower your credit score and will more than likely give you a higher interest rate.

5.  How long have you had credit.  Age matters when it comes to credit.  Younger buyers are at a disadvantage because their credit history is shorter.  The longer your credit history is the better.  This gives the lender a better idea of how you handle your money and your debt and whether or not you historically pay your bills on time.

It is important that you check your credit reports throughout the year.   You will need to make sure that everything is accurate and that there is nothing there that does not belong.  
If there are issues with your credit report, this will give you some time to correct or improve things before you attempt to buy a house.

Talk to your realtor about what you can do to improve your credit score and exactly what you will need in order to qualify for a home loan.   Your realtor will be able to refer you to a reputable mortgage lender, thereby making the whole process much easier.

Ispecialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  

For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

For a free market analysis on the value of your home, please visit http://www.LoudounHomeValues.com
My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods includeLeesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800

Free iPhone/Android Mobile App to search Northern Virginia real estate.  2 easy ways to get the App:  Text “Exit9” to 87778 or enter http://87778.mobi/Exit9 into your browser.

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