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Mortgage Refinance

Credit Check before Making Loan
Credit Check before Making Loan
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Written by Peter   
Wednesday, 20 February 2008
The main obstacle of a house buyer is that he's not qualified for a homeloan.Bank will reject a loan or won't approve a loan for this kind of customer,so that he tacitly his down payment for a house.Most of this group of home buyer is a person who has bad credit records such as being in arrears, having irregular payment dates, missed payment, or excessive  loan. All of this information can be acquired from the Credit Bureau.

Credit  Bureau  is  a  company  collecting  credit  information  from  member  financial  institutions.  When  the financial   institutions  or  customer  would  like  to  see  the  credit  information  of  the  company  or  this  own,  there  will  be  a  credit  report  includes  the  fact  of  the  borrower : name,address,  ID  card,  location  etc.,  the  qualification  of  borrower : age,  occupation,  income,  loan  and  approval  of  loan  history,  loan  payment,  and  credit  card  payment.

          Credit  information  is  a  fact  of  customer’s  credit  which  will  be  kept  in  the  system  for  not  over  3  years.  There  will  always  be  latest  information  replaced  the  old  one  according  to  the  report  monthly  sent  be  financial   institutions.  If  you  were  behindhand  with  debt  3  years  ago,  that information  wouldn’t  exist  in  the  report  of  Credit  Bureau  but  it  might  be  kept  in  the  database  of  the  bank  you  rent  money  from.  Credit  Bureau  has  no  right  to  make  any  change  to  information  received  from  financial   institutions.

          Credit  information  is  useful  for  the  bank  to  easily  check  customer’s  financial  information  and  faster  approve  the  loan.  This  is  an  advantage  for  the  borrower  with  good       credit  history,  Besides,  the  information  owner  can  check  his  own  credit  information  especially  before  making  home  loan  in  order  to  prevent  the  non- qualifying  problem  that  can  later  cause  many  inconveniences.

 To keep your good credit records is not that tough ;
  1. pay  on  time : It’s  necessary  for  every  borrower  to  pay  on  time  though  it’s  still  in  the  month  of  payment  date.  The  bank  might  assume  that  you  have  financial  problem ; this  can  have  an  impact  on  approving  your  new  loan.
  2. Buy  a  house  at  affordable  price.
  3. Use  credit  card  when  it’s  needed : Having  many  credit  cards  more  than  your  necessity,  the  bank  considers  that  it’s  risky  and  tend  to  easily  increase  debt  though  now  you  don’t  spend  all  of  your  credit  allowance  or  has    to  pay  your  loan.
  4. Check  your  credit  information with   National  Credit  Bureau .   http://www.aaacredit.com/. 
  5. If  you  have  financial  problem,  you  should  consult  with  financial   institution  to  solve  it  or  extend  payment  period  to  save  your  credit  records.Saving  credit  is  a  lot  easier  than  solving  it.





Last Updated ( Sunday, 27 July 2008 )