Hi, I am Jeff Thomas with Family Lender Inc. in Fairfax, Virginia. Today, I am going to discuss the process that you go through to get a mortgage in the home buying process. To tell you a little about myself, I have been in the Mortgage Business for about 15 years and recently co-authored a book with Todd Ballenger called “Borrow Smart, Retire Rich” and we are going to discuss the seven parts of the book at the end of the video but today we are going to discuss the form parts to a mortgage loan file.
How does credit fit into the mortgage equation?
Credit is probably the largest part of the whole mortgage process. Without good credit, you are not going to able to get the best rates that you read about in the papers and it's going to narrow down the number of programs that you actually qualify for. Your credit is actually is equated to a credit score and the credit score comes from Equifax, Experian and TransUnion; the three large credit repositories used in the U.S.
They take five parts of your credit score and they compile them together and it comes up with one number. There’s one number for each credit bureau and we use the middle of three. So, if you have a 600, a 601, and a 602, the mortgage industry is going to use your 601 as your credit score and that s the one that they are going to base on which programs you qualify for and which ones you don’t. So, your credit score combined with those three items is really going to tell you which program you can qualify for and which ones you can’t.
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