If you plan on applying for a mortgage in the near future you need to know the new rules. They have changed this year.

One of the big changes has to do with your FICO score. If you have a FICO score of 760 or better you are in great shape. If your score is 620 or below you will have a difficult time getting a loan.

The first thing to do is find out what your scores are. Notice I said scores? That’s because there are three primary credit reporting bureaus: Equifax, Experian and TransUnion.

The reason you want this information before you apply for a loan is that they are notorious for having errors. So find out if you need to correct bad information with them ahead of time.

A good way to go about getting the info is to use a web site created and sponsored by them. It’s web address is AnnualCreditReport.com. At this site you can get one copy of all three reports free each year. You may notice a difference between them. Each will have your FICO score. Go over each one to check for mistakes.

Here’s how to help your FICO score.
Don’t cancel any credit cards. Try and pay balances down. They look for high limits and low balances.
Get rid of inaccurate information on your report. Bills that have been paid off but are shown unpaid are common.
Don’t incur any more debt while you are considering a new loan. Consider paying off as much debt as you can.

Questions? Comments? Call or click we love to talk Real Estate!

Links for more help and advice:
Clark Howard
Definition of FICO score