Bastille Day, the French National Holiday, commemorates the storming of the Bastille on July 14, 1789. It marked the beginning of the French Revolution.
The Bastille was a prison and a symbol of the absolute and arbitrary power of King Louis XVI. By capturing this symbol, the people signaled that that the king’s power was no longer absolute; power should be based on the Nation and be limited by a separation of powers.
My Mother was born in France and experienced the absolute and arbitrary power of the Nazis during WWll. During the French liberation, she met and married a handsome GI Lieutenant in Marseille and followed him to the USA. It was a great adventure and a great love story.
As kids, Mom made sure we celebrated her love of family and the blessings of her new country on July 4th. And on July 14, we celebrated her love for her home country. This time the colors of the cake and ice cream were Blue, White and Red; the French tri-color.
Vive Les Etas Unis! Vive La France! Happy Bastille Day!
Your Credit Score is the most obvious factor in your ability to getting your Mortgage Application approved. The higher your score, typically the less risk you pose to lenders and the lower your mortgage interest rate. So how is your credit score determined? And how can you improve it?
Your Credit Score is based on the following 5 factors:
1. Your Payment History. (35% of your score)
♦ Your payment history shows whether you make your monthly payments on time, how often you might miss making your payments, how many days past due the due date you eventually make your payments, and how recently your payments have been delinquent.
♦ How To Improve It: Make all your monthly payments on time. The more payments you pay promptly, the higher your score. Each time you miss a payment, you risk losing valuable points on your score.
2. Amount Owed on Loans and Credit Cards.(30% of your score)
♦ Your score is also based on the entire amount you owe, the number and types of credit accounts you have, and the proportion of money owed compared to how much credit you have available.
♦ How To Improve It: Smaller balances on your credit cards can raise your score – if you pay on time. High balances and maxed out credit lines will lower your score. Keep your credit card balance to less than 30-50% of your credit line.
New loans with little payment history may drop your score temporarily because your report will show the recent inquiry into your report to obtain the new debt.
Loans that are closer to being paid off can increase your score because you have a longer track record of paying the installments on time.
3. Length of Credit History. (15% of your score)
♦ The longer you can show a history of meeting your obligations in a timely manner, the higher your score will be.
♦ How To Improve It: This simply takes time. No credit or no no recent credit is not necessarily a good thing. It may seem wise to avoid using credit, or to avoid applying for credit, but it can actually hurt your score if mortgage lenders have no credit history to review.
4. Types of Credit Accounts.(10% of your score)
♦ A mix of credit accounts is best.
♦ How To Improve It: If you only have one type of credit account, add another type when it makes financial sense to do so. A mix of car loans, personal loans, retail store accounts and major credit cards will improve your score – if you manage them wisely and make the payments on time.
5. Recent Credit Activity. (10% of your score)
♦ Steady credit activity is best.
♦ How To Improve It: If you’ve opened a lot of accounts recently, or applied to open new accounts, it suggests potential financial trouble and can lower your score. The lender will see the inquiry on your report and require a letter of explanation as to why you opened these accounts and whether there are balances that haven’t shown up on your report yet.
However, if you’ve had the same accounts for some time and you repay them on time – even after some payment troubles – your score will eventually go up.
Review Your Credit Report Annually
It’s smart to stay on top of your credit report, and to kow what potential mortgage lenders will see. You can request a FREE Annual Credit Report from each of the 3 major credit reporting agencies – Equifax, TransUnion & Experian once a year at www.AnnualCreditReport.com
Review your reports carefully, as each one may contain inconsistent information or inaccuracies. You have the right to dispute any error by contacting the agency with in 30 days of receiving your report.
“When You Work With a Professional, You Get Professional Results”
Rick Cignoli is a seasoned Mortgage Professional who brings 40 years of banking, credit union and financial planning expertise to the home buying experience. He is committed to helping his clients live comfortably and financially secure in their own home with the Right Mortgage at the Best Rate.
Understanding his clients’ needs with a focus on providing honest answers to their concerns has earned Rick a reputation as a Mortgage Advisor you can trust.
Rick particularly likes drawing on his teaching background to educate First Home Buyers on the complicated mortgage process. He can solve your puzzle with his expertise in:
♦ Conventional Mortgages
♦ FHA and the FHA 203K “Fixer Upper Rehab Loan
♦ USDA Guaranteed Rural Housing Development Loan
♦ Hone Possible Loans for Millennial Buyers
♦ FNMA Home Style Rehabilitation Loan
♦ Construction Mortgages
♦ Jumbo Mortgages
♦ And Much More!
Rick is a licensed Connecticut Mortgage Loan Officer and registered with the National Mortgage Licensing Service #76681. He attended the University of Connecticut and is an alumnus of the Stonier Graduate School of Banking at the University of Delaware.
Rick’s experience and broad knowledge of the financial markets enables him to help his clients with Courtesy, Competency and Concern with the right mortgage at the right rate.
To be sure you have all the right information to make the right financial decision for your family contact Rick at:
Sr. Mortgage Loan Officer
Norcom Mortgage NMLS# 71655
Equal Housing Lender