Washington Mortgage Planner-straight up mortgage advice and commentary

I was thinking yesterday how important your credit score is, especially now with the loan world being so much tougher.  Your credit score determines everything including how much your mortgage will cost, your car, your insurance, and even your ability to rent a place if you're not a buyer yet.  All the more reason to make your payments on time (one late payment can impact your score by 40 points or more) and to use your credit wisely (make sure your accounts aren't all maxed out).  These 2 factors account for 65% of your credit score.  If you are remiss in either one of these two areas (or both), expect to pay a much higher rate to borrow money.

So what is a good credit score?  Ideally, it's 680 or above.  720 is better still.  If you don't know your credit score, you can check it free once/year at www.annualcreditreport.com.  My friend Tyrone Dye at Dye Financial Services can also help.  He can be reached at (360) 721-3776.  A lot of times, there is erroneous information on your credit report.  It's worth it to correct it.  Again, it could be the difference between a mortgage in the 6-7% range and one in the 8's or above.  Realize that if you think you won't be able to make your payments, you can always call the lender.  They may be able to work with you.  Adverse credit information stays on your report for up to 10 years.  Although a steady pyament history within the last year will help your credit score, you want to make sure you're on top of it.  It shows the lender that you're a responsible borrower.  I hope this helps.  Have a great day!

Paul