Features of Credit Score Estimators

Your credit score is a key factor in determining the terms of your mortgage and how much you can borrow. A decent score can avail of a home loan at low interest rates. You may use a credit score estimator to obtain a reasonably good guess about your credit score. The credit score estimator is a class of software, which assesses the credit reports of an individual produced by the major credit reference agencies to arrive at a score.

Functioning of the Software

The credit reference agencies store the credit history of an individual in their database. A credit score estimator explores the credit details of the person to work out the credit score. Since there may be minor variations in the reports given out by the agencies, a person may have different scores with slight discrepancies. A particular credit score estimator uses an individual set of parameters to check the data for a person to establish the score. Mortgage lenders, banks and other credit institutions refer to these scores whenever an individual makes a request for credit.

Availing of the Score

Borrowers may scrutinize their credit report from the Internet at relevant websites once a year, at no extra charge. Credit reference agencies impose a fee for viewing the credit scores. However, many websites use calculating tools to work out your credit score. Some of the websites use your credit report and some base their results on your answers to a questionnaire. You may visit these websites to get an idea about your credit score before you intend to make an application for a mortgage. A few of these sites make available the information without charging any sum. Several websites offer trial packs of these programs at reasonable rates. You may subscribe to these to get an idea of your score.

Accuracy of the Credit Score Estimators

The various software programs available for estimating your credit scores present a rough guess of the figure. There can be variations by about 50 points from the genuine count. It is crucial to remember that lenders do not make use of these estimators to calculate your credit score. They apply directly to the credit reference agencies for the value. In addition, it is important to scrutinise your credit reports for errors because the programs base their results on these reports. Fix your credit report before finding out your score.

Deciding on an Escrow Account after a Refinance

The monthly mortgage dues of a borrower consist of homeowner’s insurance, private mortgage insurance and property taxes apart from the mortgage principal and interest payments. Lenders require that you pay the insurance amounts and the property taxes in an escrow account held by a third party called escrow services....

visit the full blog »
HUD Guidelines for Manufactured Homes

A set of directives prepared by the Department of Housing and Urban Development (HUD) may have served to enhance the quality of manufactured homes. Homebuyers are quite willing to apply for mortgages for this highly affordable quality of housing. Here are the key guiding principles put forward by the...

visit the full blog »