Articles About Finance And Refinancing

Countrywide Home Loans Encourages Home Buyers to Review Their Credit Scores Before Applying for a Home Loan

Calabasas, CA (Vocus) November 1, 2007 -- Countrywide Home Loans (http://www.countrywide.com/) encourages potential home buyers and consumers seeking to refinance their existing mortgage to review their credit scores before applying for a loan. Credit scores -- numerical values based on past payment history, outstanding credit and amount of credit available -- are an important part of the home loan (http://www.countrywide.com/) process. They provide lenders with a tool to assess how borrowers handle their debt over time. Based on this assessment, lenders can determine the risk of lending to a borrower and what interest rate will be offered to a borrower.

?Because credit scores are a significant factor when lenders determine a borrower?s credit risk, it is imperative that consumers obtain a copy of their credit report from time-to-time,? said Dan Hanson, managing director of Countrywide Home Loans (http://www.countrywide.com/). ?Having a credit report can afford consumers the opportunity to verify that the information on the report is accurate before they apply for a loan.?

Requesting a copy of a credit report to check credit history will not affect a consumer?s credit score. If consumers find errors on their credit report, they should follow the directions included with the report regarding disputes or errors. Generally, consumers must write the credit bureau and advise them of the error or dispute. The credit bureau will then contact the provider of credit who reported the information, and that provider will have 30 days to respond. If the provider of credit agrees that there is an error, it will instruct the credit bureau to delete the item from the credit report.

Recognizing that one?s credit score is a vital part of the home loan (http://www.countrywide.com/) process is the first step. The following is a list of steps consumers can take to help increase their credit scores and further simplify the loan application process.

?    Making Timely Payments. Making payments on time is the best way to increase a credit score. Delinquencies, foreclosures, bankruptcies and judgments will decrease the score.

?    Limiting Trade Lines. The number of credit cards, lines of credit and other types of credit (?trade lines?) a consumer has available will affect one?s credit score. A high number of trade lines may decrease a credit score because the consumer is obligated to pay off multiple accounts, thus impacting the likelihood of mortgage repayment. Consumers may want to consider canceling credit cards they do not use regularly or choosing 2-4 cards and canceling the rest. If an account is closed or canceled voluntarily, it will not adversely affect one?s credit score.

?    Avoiding Unnecessarily High Credit Limits. Lenders also compare consumers? available credit (credit limits) with their income when making underwriting decisions. Having credit limits that are too high relative to a consumer?s income can affect the credit score, just like having too many trade lines.

?    Limiting the Amount of Credit Used. The outstanding amount on each credit card will also affect credit score. In general, the lower the outstanding balance, the higher the score.

?    Do Not Apply For Unnecessary Credit. Whenever a consumer applies for credit, the creditor will obtain a credit report from one or more of the three credit bureaus. Each such inquiry stays on record and affects one?s score. This is because each inquiry suggests that the consumer is increasing the amount of credit available. However, consumers should not let the fear of inquiries stop them from shopping for the best deal when they need home financing. Recently, the credit bureaus have recognized that borrowers may apply for credit at more than one place for the same transaction. Generally, the credit scoring companies will consider all auto or mortgage loan inquiries received within a 14-day period as one inquiry, so the additional inquiries will not affect a credit score. Borrowers should remember that if they order a copy of their credit report, to make sure it is accurate. This will NOT show up as an inquiry on their record.

A consumer?s credit score is an important element of the home loan process. Whether one is seeking a home loan or interested in refinancing an existing loan, it is important to remember to use these vital tips to improve one?s credit score.

To speak with a home loan expert, please call 800-768-9410 or visit www.countrywide.com.

About Countrywide Home Loans, Inc.

Countrywide Home Loans, Inc., a member of the Countrywide® family - America's #1 home loan lender ? (as ranked for 2006 by Inside Mortgage Finance, Feb. 2, 2007, Copyright 2007), originates, purchases, securitizes, sells and services home loans and is the primary subsidiary of Countrywide Financial Corporation (NYSE: CFC). Countrywide Financial Corporation, through its subsidiaries, provides mortgage banking and diversified financial services in domestic and international markets. Founded in 1969 and a member of the S&P 500 and Fortune 500, Countrywide Financial Corporation is headquartered in Calabasas, California. http://www.countrywide.com

Media Contact:

Janet Quan or Kris Yamamoto

800-796-8448

###

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

How Can A Home Loan Refinance Be Beneficial
With the range of refinancing options out there, it is easy to get cynical. However, a home loan refinance can really help you get out of debt and pay off the mortgage.

Understanding Income Payment Protection Insurance
Income payment protection insurance would payout a tax-free income for between 12 and 24 months if you should lose your own income A loss of income could occur if you were to become unemployed through no fault brought about by yourself, such as being made redundant

Mortgage Protection Cover Still Complicated When It Comes To Buying
When it comes to buying mortgage protection cover it can still be hard to understand the exact nature of the cover, depending on where you buy your policy. Despite guidelines being set out by the Financial Services Authority many providers are still not giving adequate information at the time of selling the product. This is leaving many consumers unaware of the exclusions that exist in their cover, which can stop them from being eligible to claim.

Credit Card Tokenization: An Option For Compliance
Credit card tokenization is a cost effective means to help companies achieve PCI compliance without having to invest in expensive hardware and software installs or upgrades. On-site storage can make your business a target for criminal attempts to break into your system. An efficient remote storage system, however, can simplify the process of becoming PCI compliant and keeping your customers' information safe.

Mortgages Plc Suspends all Heavy and Unlimited Adverse Business in Light of Current UK Mortgage Market State
With companies such as Mortgages Plc reforming their current strategies as a knock on effect of recent events. An outline is provided on the strategic changes being made and what the future holds for mortgage companies and homeowners.

Credit Card Debt Counseling
It?s not much fun being deeply in debt. Often times you may find it very difficult to see your way out of a problem like this. If you find that you can?t manage your debt on your own there are programs that can help. One of these programs is called Credit Card Debt Consolidation Counseling.

Pet Rewards Visa Credit Card
Pet lovers now have a new way to show off their pet and earn pet related rewards. Introducing the Bank of America Pet Rewards? Platinum Plus Visa? Credit Card, a credit card designed specifically for pet owners.

Online Mortgage Portal gets into the Holiday Spirit by Paying a Full Month of Mortgage for a Lucky Refinance Applicant
LendingGateway.com decides to give one lucky mortgage applicant a free month of their loan payment.

Fortora's Straightforward Personal Finance Manager for Mac & Windows Ships
Version 1.1 of Fortora Fresh Finance, the straightforward personal finance software for both Mac and Windows, is now available.

How to Understand Mortgage Jargon
Challenge your word vocabulary and boggle your mind. Understanding the financial world of home ownership is much easier with a good mortgage consultant, who can guide you through the lending options.

Online Finance Has Grown In Leaps And Bounds
Since the Internet has become a phenomenal medium for the growth of business, finance is also a part of it. The fields range from stocks to banking and various other activities related to money. Even property is marketed and sold online today. The Internet has made all activities possible, and this has made managing money easy for many millions of people.

Coaction Group Develops New Invoice Payment and Tracking System for Private Estate Management
Collaborative solution improves operational efficiencies, document management and makes information available on demand.

How To Find Good Home Mortgage
While looking for home mortgage loans, you find yourself entitled for lower interest rates if you have healthy credit scores. However, don?t assume you will get only a costly loan if you have some credit problems that arose due to illness, or temporary unemployment. You can explain the situation to your lender and chances are higher you will get a less expensive home mortgage. The key here is to open yourself up to available mortgage choices and willingness to do some bargain. Before you submit a loan application be aware of your credit standing by checking your latest credit score with any of the credit rating agencies ? Equifax, TransUnion or Experian.

Why Are Mortgage Notes Discounted Anyway?
When real estate note brokers purchase partially paid notes, they pay the note holder a discounted price after factoring in the time value of money, the payer history, and property condition.If  there is still a significant period of time left for the payer to make payments, the future payments are not worth the same amount in current dollars.