Managing home finances is all about being smart and thinking logically at every challenge put forth you. Take home loans for example. If you are a seasoned home buyer, you will know the pain. What about the first timers? Following are the most workable and smart solutions if you are looking for the best mortgage lenders in town:
Set a good credit score
Best mortgage lenders look for borrowers who meet a certain credit and annual income criteria. These are the two most important norms to qualify for buying a home. A bad credit score may send wrong signs to lenders, which means they may give you a loan at a higher interest rate. The better your credit score and frequent on-time payments, you eventually become the favorable customer. This will also put you in a better position for negotiation for better rates with potential lenders.
To form a good credit score, first you need to have an accurate and error-free report. You can get your report from major credit bureaus.
Know the lending landscape
Out of the lot, it is quite difficult to distinguish between the best mortgage lenders. Here are the most common types of lenders you will get to choose from:
Credit unions: These type of financial institutions generally offer lower interest rates to borrowers. Many of them often have eased membership constraints, making it easy for one to join.
Mortgage bankers: They work for one financial institution and provide loans approved by the bank’s underwriters.
Correspondent lenders: These are local mortgage organizations that provide loan.
Savings and loans: These are smaller financial institutions and are found in the communities.
Mutual savings banks: They are thrift institutions, like savings and loans, and are locally focused and often competitive.
Compare rates from several mortgage lenders
This is where you need to give your sweat and blood and do a bit of research. As discussed, there are all kinds of mortgage lenders, ranging from neighborhood banks, big commercial banks to credit unions and online mortgage lenders.
You can start by searching the best mortgage rates on the Internet. You can further negotiate the rates with the lender or broker, who will access your credit information and process a loan application to provide an accurate rate.
You can also pick the right lender/broker from the best mortgage lenders by asking the right questions. Ask for referrals from friends, family, or your real estate agent, or by reading online reviews. Examine the names referred to you and pick the best.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.