Credit
 
A very reliable source told me recently that the number one reason for loan denial is poor credit. One thing we agreed on is that many of those denied would have been approved had they started earlier to repair a damaged or bruised credit history. The statistics on the amount of incorrect information are appalling. Doubt it? Check the statistics.
 
For years, our industry has been telling potential applicants
 
GET YOUR CREDIT REPORT!!!
 
You've heard this too. Have you done it? If so, congratulations!! If not, now is the time to do it. You can order your credit report by going to one of the websites which can run the report for you. A good one is QSpace.
     
If there are any inaccuracies on the report, you can correct them. No kidding, it takes 60 days, at least, to correct some of them and you'd better do it now, not after you've made a deal on your home and the lender sees a credit report with a lot of blemishes on them.
 
I want to tell you a little story about a borrower who had applied for a loan and one of my lenders had terrific pricing on the loan program which was ideal for the client. Problem was that the borrower's FICO score was 659, not bad actually, but one of this lender's rules was "The minimum FICO score for this program is 660." Yes folks, we're talking about a 1 point difference and what made it especially frustrating was that we had letters in the file from each of the three derogatory accounts on the credit report saying that they would correct their reports. But it takes a long time to do that. Our choice was to wait 60 days or switch lenders at a cost of over $500. You do not want to be in that position.
 
Both of my books have an entire chapters devoted to fixing credit problems, information that is worth the price of the book.
 
To check out some of my thoughts on FICO scores,
 
 
 
 
 
Randy Johnson Independence Mortgage Company, 1601 Dove Street Suite 181, Newport Beach, CA, 92660
Phone
(949)-852-8822 Fax (949)-852-0441 Updated 7-5-02
   
   
 

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