Gay realtor Washington, DC wants home buyers to know that the better your credit rating is, the easier it will be for you to buy a home. The mortgage that you obtain will have a much lower interest rate and possibly even less penalties then if you have a bad credit score.
Unfortunately credit scoring is a necessary evil and it is not a new rating system. It has been affecting people’s ability to buy a home since the late sixties. By the late seventies almost all major bankers and lenders were rating applicants for mortgages using some kind of credit-scoring system. This pretty much eliminated the days when a person could just walk into a bank and chat the bank manager up on a personal level to obtain a house loan. The era of the “gentleman’s agreement” disappeared in U.S. culture along with Leave it to Beaver and the Atomic Age of the fifties.
The two main inventors of the system were Earl Isaac and Bill Fair who realized that lenders needed some kind of equation to determine whether or not a client was trustworthy to merit a loan. To this day, Fair Isaac is the system used to calculate credit scores (FICO).
The main virtue of this system is that for the most part it is blind. A good credit risk cannot be turned down because of color, religion, race or sexual orientation, or be accepted because of nepotism. The entire ratings system was invented so that people could be assessed on whether or not they should be leant money based on if they could keep their financial commitments only.
Gay Realtor Washington, D.C. wants you to be aware that even legitimate “bad items” on your credit report can be challenged… if the original source that provided the bad information does not reply within a certain amount of time (which many do not), the debt must be removed by the credit bureau.
The score calculating methods became influential because they were seen as such a blind, fair way of assessing a client. These scores, known as FICO scores have been influencing how people buy houses since the mid 1980s. This calculation also allowed lenders to decide within a matter of minutes whether or not a client merited a loan. It used to take weeks to assess a single person’s suitability for a house loan.
FICO scores were also considered to be very accurate because the score was created from several different sources at once as well as financial history. Things that are taken into consideration are your history of paying bills on time, the types of credit that you keep, the number of accounts you keep, any public records items and how much available credit you have managed to amass over the years.
Even though FICO calculations dominate credit score reports, Gay realtor Washington wants you to know that you actually have three credit scores in total. If you are going to assess yourself then make sure that you pull all three credit reports from Equifax, Experian and Transunion, in most states you have a right to one free credits report from each of the reporting agencies, per year. If you want a completely accurate assessment of your credit Gay realtor Washington advises that you pull all three of these reports and make sure that errors and debts are cleared up on all so that you can get the best interest rate possible on a new house.