How Can I Find Out Information About My Credit History?

 

Watch this video and take a few notes! There are three major credit reporting companies:

  • Equifax – www.equifax.com 1-800-685-1111
  • Experian – www.experian.com 1-888-397-3742
  • Trans Union – www.transunion.com 1-800-916-8800

Obtaining your credit history is as easy as calling and requesting one. Once you receive the report, it’s important to verify its accuracy.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port

What Is A Credit Bureau Score And How Do Lenders Use Them?

 

As we show you in this video, a credit bureau score, or “credit score” is a number based upon your credit history that represents the possibility that you will be unable to repay a loan.

Lenders use it to determine your ability to qualify for a mortgage loan.

The better the score, the better your chances are of getting a favorable loan.

Know your score and ensure that lenders have current information about it.

Suncoast Title One has offices in Punta Gorda, Port Charlotte and Punta Gorda Florida

What Does Ability To Repay Mean?

 

What are the “Ability to repay” rules about?

In a nutshell, as this video shows, new laws require lenders to make a good-faith assessment of a borrower’s capacity to pay back their loan over time.

It’s a longer-term view that goes beyond immediate income, debt and credit rating.

These new Federal laws- supervised by the CFPB – require lenders to ask more questions –

about income, assets, employment, credit history, and monthly expenses –

as they relate to the proposed loan.

For example, a lender offering a mortgage with a low initial rate must try to assess how a borrower will handle the later, higher rate as well.

If you’re applying to borrow ask whether the program you’re considering is a Qualified Mortgage

Ability-to-repay rules are built in to loans that meet Qualified Mortgage guidelines.

 

Visit all three of our locations in Port Charlotte, Punta Gorda and North Port!

 

What Is The Debt-To-Income Ratio (DTI)?

What is the Debt-to-Income Ratio? Can you afford to buy a house?

Check out this short video to see how they decide if you might qualify for a mortgage!

 

We close many loans in Port Charlotte, Punta Gorda and North Port, FL.

Measuring your existing debts against your existing income is one part of a lender’s required assessment of your ability to repay a loan.

Like the video says:  debts are existing financial commitments; a car payment is a debt a grocery bill is not.

To calculate your debt-to-income ratio add up your monthly debt payments and divide them by your GROSS monthly income. (Gross income is generally the amount of money you earn BEFORE taxes and other deductions.) The Federally-established debt-to-income target is a maximum of 43% for Qualified Mortgages.

If your ratio is higher there may be other loans available  – however, there may also be additional questions to establish your ability to repay, and the rates may be different than those available for Qualified Mortgages.

Studies suggest that a high debt-to-income ratio puts a homeowner at greater risk of challenges making monthly payments. So consider your situation and risks carefully before exceeding that suggested ratio.

If you have questions about purchasing a home in Port Charlotte, Punta Gorda, or North Port please feel free to contact us at
https://suncoastone.com/contact/

Suncoast One Title Serving Port Charlotte, Punta Gorda and North Port!