Credit is one of the most important pieces of the puzzle when it comes to purchasing a home. It entails more than just your payment history. It takes into consideration your credit usage, length of time you had your credit line, the number of credit cards you have and the inquiries into your credit. Each mortgage product is based on guidelines, which differ depending on the loan.  And while lenders look at the credit scores, they also look at how much of a down payment you have to determine your rate.

Credit scores are calculated individually by these three credit rating agencies:

Equifax
TransUnion
Experian

Did you know you are entitled to a free credit report each year from each of the three credit bureau’s. That’s right, free. This site was set up and authorized by the federal government to supply consumers a copy of their credit report, free. The idea was that since this information belongs to you, you should be able to validate  the accuracy of their reporting. They don’t offer you credit scores for free, but do offer them at an additional charge. The idea is to make sure your credit is being reported correctly. If you would like more information on this, please

Under the Fair Credit Reporting Act (FCRA), consumer reporting agencies are permitted to include customers’ names on lists used by creditors or insurers to make offers of credit or insurance that are not initiated by the customer. The FCRA also provides customers the right to opt out, which prevents consumer reporting agencies from providing credit file information to others.Optoutprescreen.com is a joint venture among Equifax, Experian, Innovis, and TransUnion, allowing customers to opt out of receiving credit card solicitations by mail.  

Beginning on August 1, 2005, the Fair and Accurate Credit Transaction Act  of 2003 took effect, which amended the FCRA to require consumer reporting agencies to include in their credit offers a statement allowing customers to stop unsolicited offers either by phone (1-888-5OPTOUT or 1-888-567-8688) or via https://www.optoutprescreen.com .[3] The Optoutprescreen.com is not accessible by users of ISPs located outside the United States and the U.S. Territories. Customers may opt out from receiving offers for either five years or permanently. To opt out permanently, customers must confirm their requests in writing, by mailing in a Permanent Opt-Out Election form, available through the website. Customers who have opted out will no longer be included in offer lists provided by consumer reporting agencies. Customers who have previously completed an opt-out request may request to opt back in at the website as well.