Finances

How Sweet is Your Credit Score?

Bitesize Credit Tips from STM’s Credit Expert, Mike McNamara

Valentine’s Day is approaching, and a sweet credit score may not be on your wish list. However, when it comes to buying a home – good or great credit always sweetens the deal.

Check out these credit monitoring and scoring tips from Southern Trust Mortgage’s resident credit expert, Mike McNamara, and fall in love with your credit.

Mike McNamara, VP, Mortgage Credit Officer | NMLS #1725534
Q: How many scores are used in the home lending process?

A: Three, as each credit repository supplies a score. However, Lenders must use the middle score for qualifying purposes.


Q: Are the score models used for the mortgage industry different from those used by Credit Karma?

A: Yes. The mortgage Industry uses models designed for mortgage lending. The formulas used in these models differ quite substantially from those used in the Consumer Score models.


Q: What is the best credit monitoring service/program?

A: There are several highly regarded monitoring services, some of which include Identity Guard, All Clear ID, Experian Identity Works, and Life Lock.


Q: What is the best way to increase credit scores?

A: Keeping unsecured revolving account balances below 30% of their limits, paying all bills on time and avoiding negative items such as collections.


Q: What types of accounts are considered best for credit scoring?

A: It is best to have 2-3 major credit cards (Master Card, Discover, AMEX, Visa) and a secured loan such as an auto loan.


Q: What are the score thresholds for obtaining a mortgage loan?

A: It is best to have at least a 640 middle credit score. However, in some cases it is possible with a 620 score.


Q: How long does it take to begin seeing credit rescoring results?

A: In most cases we see an improvement in the scores in 72 hours or less.


Q: How do inquires impact credit scores?

A: Inquiries usually have very little impact on the credit scores.

You deserve a credit score that you love and one that loves you back. Ask one of our Loan Officers TODAY about how to strengthen your credit relationship and get into the home of your dreams.

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