Understanding Your Credit

Knowledge of your credit report and how it can affect your ability to purchase a home is essential. If you pay your bills late, carry excessive credit accounts or have collection issues on your credit report, this may largely affect your ability to buy a home. Your credit score, is a key element in determining your qualification to obtain a loan. Most lenders require a minimum score of 580 to qualify for a home loan program. Consumers with consistently high credit scores, 700 and above will likely receive lower interest rates and be able to qualify for a larger loan amount if desired than those whose credit has been compromised.

These are the 3 major credit-reporting companies used by lenders when evaluating your credit report:

Additionally, beginning in June 2005 for the state of Florida, you may now receive one free credit report per calendar year through www.annualcreditreport.com