Northern Mortgage
Know your credit
What’s your score?
YOUR SCORE IS USED BY LENDERS TO DETERMINE HOW LIKELY YOU ARE TO RE-PAY DEBTS.
HOW IS MY SCORE IS DETERMINED?
Credit scores are calculated by comparing your:
- Payment history (~35%)
- Amount owed (~30%)
- Age of credit (15%)
- New credit (10%)
- Type of Credit (10%)
Are you hurting or improving your credit score?
FACTORS WHICH HURT YOUR SCORE
- Late payments over the last 24 months
- Maxed-out balances
- Closing accounts
- Recurring account opening & closing
- Opening multiple accounts too quickly
FACTORS WHICH IMPROVE YOUR SCORE
- On-time payments
- Low balances
- Keeping accounts open
- Limiting number of accounts
- Reducing number of revolving debts, and prioritizing fixed debts
Hits to your credit
Your credit profile can be affected by inquires from potential lenders. Many inquiries can have a negative effect on your credit.
What is a soft hit?
Soft hits are inquiries without negatively affecting your credit profile. Some examples:
- Free yearly copy of your credit report
- Inquiries by insurance companies
- Auto dealer inquiries
- Employer inquiries
What is a Hard hit?
Hard hits are inquiries which may negatively affect your credit profile, even if the application is denied. Some examples:
- Lender inquiries
- Retail store inquiries
- Other installment inquiries
Get your credit score
Request a free yearly credit report:
Need more details or guidance? Contact a Loan Officer!
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Need a home loan or refinance?
Northern Mortgage definitely has the lending process figured out. I will be referring everyone I know that’s in the market for a home their way!
Northern Mortgage has great people and are extremely helpful. They stay in constant contact and get things done correctly. I’ve used them twice now and both experiences were great. I would recommend them to anyone.
Was trapped in the rental game and Northern Mortgage bailed me out and got me into a home even though my income was in a rut at the moment and my credit was low. Saving hundreds every month now and can’t wait till I shop for a home closer to my dream.