Shaunda Young
Shaunda Articles
Shaunda RECOMMENDS
Shaunda received a Bachelors of Arts in 2000 from Clark Atlanta University in Atlanta, GA. After college she returned home to her native Washington, D.C. Where she taught for 5 years.
Shaunda's success has come from the good relationships built with real people. As a young professional working for you, Shaunda will make sure that your financing needs are met with the same first class professionalism. She will consult with you on your credit and financial needs to find the right mortgage program.
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Shaunda recommends
Kendrick Faison- Long and Foster Realtor
Search Laurel and Prince George's County homes for sale
http://kendrickfaison.com/m_calc.htm
Understanding credit, and credit scoring
Credit is the ability to borrow tomorrow’s money to pay for something you get today. Credit can help or hurt when trying to finance a home. Lenders look at capacity, capital, collateral and also credit.
Capacity- Does the potential buyer have sufficient income to repay the loan?
Capital- Capital refers to cash reserves savings, investments, property or assets possessed by an individual that may be liquidated.
Collateral- The value of the property that the borrower owns which is pledged as security for the satisfaction of a debt is considered collateral. For a mortgage loan, the collateral is the home you are buying.
Credit- lenders will review and applicant’s credit history to determine overall creditworthiness
Credit scoring uses information contained in your credit report and provides the lender with a credit score. By understanding the key credit related factors and tools utilized by lenders and creditors, you will be better prepared to successfully secure credit at favorable terms and better positioned to build and maintain a good, solid credit history.
A credit score is a three-digit credit rating used to determine the likelihood someone will pay back a loan. Lenders get these scores from the three major credit reporting agencies: Equifax, TransUnion, and Experian. A credit score usually ranges from 300 to 850. Credit scores take into account the borrower's payment history, amounts owed on accounts, length of credit history, new credit, and kinds of credit used. Information such as age, race, religion and marital status are not considered. Loan rates are typically determined on the basis of your credit report and credit score. “A” Loans are for people with good to excellent credit and have the lowest interest rate. “B” or “C” Sub prime loans have higher rates due to past or current credit problems such as late payments.
Excellent: 720 +
Very Good: 700 - 719
Good: 680 - 699
Fair: 660 - 679
Needs Improvement: 620 - 659
Poor: Less than 620
The primary key to establishing a good credit history is in honoring your promise to repay loans or credit cards as agreed, in a timely fashion. Consistently paying bills on time and keeping your credit card balances low are some ways of increasing your credit score. If you have missed making payments on your bills, get current and stay that way. Furthermore, strive to pay off debt instead of just moving it around. The higher the score is, the more likely that the borrower will repay a loan.
Each lender will have its distinctive means of determining a borrower's risk level. Some lenders will have their own scores, which may use the credit score, but which may consider other kinds of information. Check your credit report at least once a year by obtaining a copy from each of the following credit agencies. Equifax 800-685-1111 www.equifax.com, experian 888-397-3742 www.experian.com, Trans Union 800-888-4213 www.transunion.com. Checking on your credit report generally will not affect your score. Furthermore, as your methods of handling credit change over time, so will your credit score.
