224 N Yenlo, S3B
Wasilla, AK 99654
Main: (907) 357-9640
Toll Free: (877) 535-7827
Kelstar Staff :
Cris Skinner
President / Owner
Sr. Mortgage Consultant
Affiliate of the year 2007,
Valley Board of Realtors
President
AK Assoc of Mortgage Brokers
Misty Brown
Lead Mortgage Consultant
Treasurer
AK Assoc of Mortgage Brokers
Tauna Clegg
Mortgage Consultant
Secretary
AK Assoc of Mortgage Brokers
Credit Facts
Mortgage and Credit Reports
Many home buyers are worried about how their credit report will affect their ability to buy a home. Credit standing has a significant impact on a home buyer, but does not necessarily disqualify them from purchasing a home. However, it could have an impact on the type of mortgage program and interest rates a home buyer may qualify for.
Most people will not need to worry about the effects of their credit history during the mortgage process. However, you can be better prepared if you get a copy of your credit report to review before you apply for your mortgage. That way, if there are any errors, you can take steps to correct them before you make your application.
If you have had any credit problems, be prepared to discuss them honestly with a mortgage professional and come to your application meeting with a written explanation. Responsible mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. If you had a problem that's been corrected, and your payments have been on time for a year or more, your credit may be considered satisfactory.
ABC's of Mortgage Credit
How to Protect Your Credit ScoresThe mortgage industry tends to create its own language and credit rating is no exception. BC Mortgage lending gets its name from the grading of one's credit based on such things such as payment history, amount of debt payments, bankruptcies, equity position, credit scores, etc.
*Other Things Being Equal-When you have derogatory credit, all of the other aspects of the loan need to be in order. Equity, stability, income, documentation, assets, etc. play a larger role in the approval decision.
*Worst Case Scenario-When determining your grade, various combinations are allowed, but the worst case will push your grade to a lower credit guide. Mortgage Lates and Bankruptcies are the most important.
*Going Once, Going Twice-Credit patterns are very important. A high number of recent inquiries and more than a few outstanding loans may signal a problem. A "willingness to pay" is important, thus late payments in the same time period is better than random lates, as they signal an effort to pay even after falling behind.
* Pay your bills on time. Its the best way to keep your rating high.
* Get up to date on missed payments. Once you are current - remain current.
* Keep credit card balances low. Large balances will have a negetive impact on your score.
* Eliminate debt, don't rearrange it. Pay down revolving credit such as credit cards. Consolodating into few open accounts can help too.
* Don't open more credit accounts than you need. To much open credit can actually have a negative impact on your credit score.
* If you hav had credit problems, act quickly to reestablish good credit.
* Do not apply for new credit or have your credit report pulled to often. Several inquiries on your credit can cause your credit scores to decrease.
* It's OK to check your own credit. Be sure to order your credit report directly from the credit agency.
How to Correct Errors
You have the right, under the Fair Credit Reporting Act, to dispute the completeness and accuracy of information in your credit file. When a credit reporting agency receives a dispute, it must reinvestigate and record the current status of the disputed items within a "reasonable period of time," unless it believes the dispute is "frivolous or irrelevant." If the credit reporting agency cannot verify a disputed item, it must delete it. If your report contains erroneous information, the credit reporting agency must correct it. If an item is incomplete, the credit reporting agency must complete it.
For example, if your file showed that you were late in making payments on accounts, but failed to show that you were no longer delinquent, the credit reporting agency must show that your payments are now current. Or if your file showed an account that belongs only to another person, the credit reporting agency would have to delete it. Also, at your request, the credit reporting agency must send a notice of corrections to any report recipient who has checked your file in the past six months.
For those items in your credit profile which you feel deserve further explanation (such as an account that was paid late due to the loss of a job, military call-up, or unexpected bills), you may send a brief statement to the appropriate credit reporting agency. The information will be placed on your credit profile and will be disclosed each time your credit profile is accessed.
Credit Reporting Agencies
Equifax Information Service, Attn: Disputes
PO BOX 740341
Atlanta, GA 30374
(800) 685-1111
Experian, Attn: NCAC
PO Box 2104
Allen, TX 75013-2104
888-397-3742
Transunion
TransUnion Corporation, Attn: Disputes
PO Box 390
Springfield, PA 19064-0390
800-916-8800
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Kelstar Alaska Mortgage Specializes in Alaska Home Loans, Alaska VA loans and Refinances