A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the credit worthiness of that person. A credit score is primarily based on credit report information Lenders, such as banks and credit card companies, used credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which consumers are likely to bring in the most revenue.
First Time Home Buyer
An indidividual who is purchasing a principal residence for the first time is considered a first time home buyer. As such will be allowed with no restriction. There are a limited amount of community lending programs that provide assistance to first-time homebuyers through a deffered 30-year second mortgage loan of up to a maximum of $58,500 at 3% simple interest. Certain restrictions apply.
Pre-Qualification Letter is typically issued based on borrowers proof of employment, income, assets, debts, and credit score. Based on this initial information, a maximum loan amount will be determined according to a standard Debt-to-income ratio.
Pre-Approval Letter is based on revenue of your loan application, credit report, an analysis of income, debts & assets, loan amount, term & interest rate, and address of a specific property. Further supported by DU or LP findings of approved/elgible.
Credit Scores
Derogatory notations in your credit file diffinitely affect your credit score in a negative way. Generally, most of these items are fix-a-able with the aid of a credit analyzer. The analyzer is a proactive plan for you to follow and once succesfully completed the results will increase your scores.
Credit Niches