good credit refinance help & advice


The Benefits Of Buying A Home With Good Credit And Refinancing With Good Credit

Attn: Special Rates Available Until For Residents Of Virginia & Neighboring States!

Getting a good mortgage is one of the most overlooked aspects when shopping and applying for a loan.  A lower interest rate can save you hundreds of dollars a month and tens of thousands of dollars over the course of the mortgage.  Interest rates are low right now and locking in a good rate for purchasing a home or refinancing an existing home is a good idea right now.  Please note that Peak Home Loans are experts at getting our good credit clients the hassle-free, low cost, best rate mortgage refinance loan they desire.

But, because of the recent rash in foreclosures across the country, banks are hesitant to loan money to anyone without good credit.  However, there are several courses of action if you do have good credit and want to refinance with good credit or buy a home with good credit.  If you have a good or excellent credit rating, Peak Home Loans can offer you the type of loan you want at the rates and terms you have worked so hard to deserve.   Good credit's the greatest asset you can have.  Excellent credit's, well, excellent. You can get the best of everything - rates, terms, reduced paperwork and many more benefits too numerous to mention.  We can give them all to you.  You earned it.   When contacted by us, kindly ask our loan professional any question you may have.  They will be more than happy to assist you in getting the very best rate due to the good credit you earned.  Remember, all loans don't fit all people;  if you need a mortgage loan and have good credit, we'll find the right one for you.

Credit Report Information 101

The credit reporting bureaus ? TransUnion, Equifax and Experian ? are the three major companies that maintain credit reports. The reporting companies issue credit reports to creditors, insurers and others as permitted under law for the purposes of evaluating your financial responsibility.

Here is an example of how the system works:

  1. Apply for a Credit Card
    When you apply for a new credit card, the creditor requests a copy of your financial history, or credit report, from one or more of the credit reporting companies.

  2. The Creditor's Assessment
    The creditor may use your credit report, a score, and other information you provide (such as income or debt information) to determine whether to approve your application and what rates to offer.

  3. The Creditor's Decision
    If you are issued a card, the creditor reports that account to the credit reporting companies, and then updates it, including your balance and payment activity, about every 30 days.

  4. Your Credit Profile Updated
    The credit reporting companies update your credit report as they receive new information from creditors and lenders. Your credit profile changes based on your financial activity. The next time you apply for a credit card or loan, the process repeats.

Your Credit Report

Your report is divided into six main sections. When you open a new account, miss a payment or move, these sections are updated with new information. These sections are:

  1. Identifying Information(name, address, birth date and Social Security number)

  2. Employment

  3. Consumer Statement

  4. Account Information

  5. Public Records

  6. Inquiries

  7. Managing Your Credit Report

Negative Records

  1. Late payments create a negative record. Generally, negative records will stay on your report for up to 7 years (up to 10 years for certain bankruptcy information). Positive records can remain on your credit report longer.

  2. Your Credit Report is updated in most cases every 30 days.

  3. Your credit report is updated with new information reported by your creditors. Most creditors report new information approximately every 30 days, to reflect your account balances and payments you make.

  4. Check every 6-12 months.

  5. Not all creditors report to all three companies; the companies obtain their data independently, so your credit reports from TransUnion, Equifax and Experian could substantially differ. That's why it's important to check your three credit reports every 6-12 months to ensure that the information is accurate and up-to-date.

Correcting inaccuracies

Under the Fair Credit Reporting Act, consumers are protected if there is inaccurate information on their credit reports. If you find inaccurate information on your credit reports, you can contact the associated creditor or lender directly. You can also dispute the inaccuracy with the credit reporting companies.

Know the system

Managing your credit and maintaining a good credit history can lead to better rates on major purchases. We recommend that you check your credit reports every 6-12 months, or at least 3 months before a major purchase, in order to identify potential inaccuracies and any signs of identity theft.

Routine check-ups, along with paying your bills on time, keeping your credit card balances below 30% of their limits, and correcting any inaccuracies will help ensure your credit reports are viewed in the most favorable light.

This information is for educational purposes only and does not constitute legal or financial advice. You should always seek the advice of a legal or financial professional before making any legal or financial decisions.

Here Are Five Ways To Get A Lower Interest Rate With Good Or Excellent Credit

  1. You need credit in your own name, not your spouse's or anyone else's name.  This is especially true if that individual has bad credit or your name has been tied to them in the past, and then you get bad credit.  What you can do is call the credit bureaus (there are three national ones) and tell them that you are requesting to have credit in your own name, and that you don't want anyone else's accounts tied to yours.  Insist they remove any and all accounts that could be attributed to your spouse or former spouse.

  2. Get information on how your credit score is tabulated.   There are three factors normally evaluated and then turned into a risk score (or how likely you are to pay off your debt).  The first factor is Capacity - can you pay it back?  How long have you had a job or the same job?  What is your individual debt ratio?  They look into loans and other credit cards and all sorts of things.  The second factor is Collateral - do you have anything of value to put against a loan as large as a mortgage?  Finally, they study your Character - do you have savings and checking accounts?   Have you been at one job a long time?  Do you pay your bills on time regularly?  What is your education or criminal status?

  3. Put down more money on your home loan.  Putting down 20% down rather than 10% down will save you money in the interest rate you will receive.  This will also save you from paying private mortgage insurance which can be costly.

  4. Buy a home that costs less money.  This makes sense.  The lower your monthly housing expenses are relative to your monthly income, the better the interest rate you will receive.   You are better off paying 30% of your monthly income to housing expenses, including mortgage payments, home owners insurance, and taxes, than you are paying 40%.  Think about the stress you will not have.

  5. Negotiate your interest rate.  Also, negotiate the fees you pay for your loan.  Remember, everything is negotiable.   Banks want your business, that is how they make money.  Without loans like yours, they would be out of business.

good credit refinancing

As far as wee see it, for the rest of the year, credit standards are going to remain high.  Approvals and best rates will go to those with the highest credit scores.

Here Are Six Ways To Maintain Your Good Credit

  1. Know that your payment history, amount of debt, age of your credit, credit mix, and current credit all make up your credit report.
  2. Needless to say, but pay your bills in a timely manner.   Your credit report contains 30, 60, and 90 day late payments.
  3. Keep credit card balances low relative to their limit - the lower the ratio, the better your credit.
  4. Keep all your credit cards open.  Do not close any, even if you don't use them.  This will increase your available limit, and the debt you do have will be a smaller percentage.
  5. Do not apply for new credit cards.  Your credit will drop every time you apply for credit.
  6. Keep an updated credit report on file, and update it every three months.
good credit refinancing

Note:  Your FICO score consists of five main areas:

  1. Payment history.
  2. Amount owed on your credit in relationship with the credit limit.
  3. Length of credit history in years.
  4. How much new credit you are applying for.
  5. Type of the credit you are using.

Click to get your FREE FICO Score From TransUnion, Equifax And Experian (Tri-Bureau) You get your credit score for free, monthly monitoring for free, and the ability to dispute any item on your report that is wrong.  This is an excellent way to improve your already good credit score and get lower interest rates within 30 days.  You should never be denied a loan with excellent or good credit;  but if you are, you may obtain a fee report from the agency that provided the information leading to your denial.  Knowing your credit score is always the best policy.