February 2008 - Financing Basics

presented by

EZQualDreamHomes.com and Swiftcurrent Investment Group

February

Financing Basics; The start to getting you financed for your new home

You know how important FICO scores are to your financial stability. Don't get frustrated by all the information that you will receive in these emails in the upcoming year. With you following our easy to understand instructions you will see improvements over the next 12 months.

And, once you move into one of our homes you will be attending our monthly classes where you will have hands on experience improving your budgets and your credit scores will go up and up.

Our goal is to make your life easier by helping you understand what this all means and how to improve your scores in the easiest possible way so that you and your family will benefit by saving money and spending it where you choose.

FICO scores or credit scores range from 300-850. This is the most important factor that lenders use when determining if your application is approved. This means ALL lenders- car loans, bank loans, credit card applications, home mortgages and insurance premium. Your FICO score is a direct reflection of You and Your ability to get good financing.

Your credit score is actually more important than your yearly salary or maybe even your net worth - That is why it is so IMPORTANT to learn the rules and how to play the game!

And this network of finance specialists will teach you the RULES of ENGAGEMENT!

Create a STRUCTURED Plan!

With our system you will be assigned a finance specialist to work one on one with you according to your schedule. You must make the commitment to make the changes that are recommended in order to see your credit scores improve. Then...you will reap the rewards of a good or even great credit score to include lower monthly payments.

FICO score is another word for credit score. This abbreviation stands for Fair Isaac Cooperation- the inventors of the scoring system. This number is a 3 digit rating system that ranges from 300-850. The score is based on mathematical formulas used by the credit bureaus and lenders to predict whether you the borrower will pay a debt on time and in full.

Lenders will usually offer the best rates for borrowers with credit scores of 720 or higher.

Borrowers with scores below 620 are considered a higher risk and therefore are required to pay a higher interest rate to soften the risk for the lender.

Your credit score is a huge factor when determining if a lender approves or denies your application for a credit card, car loan, home mortgage, health insurance, or maybe even employment. That's right, employers often do run credit checks on their employees as well. Your credit score determines the car you drive, the insurance you have and the home you live in. Isn't time you had some say in these decisions?? Of course it is and you can start by improving your credit.

There are 3 credit Bureaus in the USA- Equifax, Experian, Transunion.

Each one has their own version of the FICO score with their own names. Equifax has the Beacon system, Transunion has the Empirica system and Experian has the Experian/Fair Isaac system. Each one is based on the original Fair Isaac (FICO) Report mentioned above.

Some lenders also use their own scoring methods. such as your income or how long you have been on the same job. But...all of these systems have certain similarities and thoses are the things we need to concentrate on first and foremost. To narrow down the most crucial factors in a FICO score formula we will look at 5 primary factors:

1. Your Payment History

2. The Amount of Money that You Owe

3. The Length of Time you have Had Credit

4. The Type of Credit that you have

5. The number of Credit Inquires

We will continue with more in depth information on each factor in future emails.

Offered to you by:

Lori Jake

Swiftcurrent Invesmtment Group, LLC

EZQualDreamHomes.com