The most important piece of a person’s financial life is their credit score. Whether buying a new Dallas home, applying for a job, refinancing your Dallas home, paying off debt, or getting utility service, your credit score will drive the outcome. One would think that Americans are all aware of what the scores are measuring and what factors play a part. But, most Americans do not know enough about the three digit rating or what is involved. Do not let these credit score myths get in your way when preparing for the purchase of your next Dallas home.
Myth: Checking a credit report can either damage or lower your score.
A credit report can be conducted by you or someone like an employer as many times as desired with out having any impact on your credit score. Reviewing your credit report will never change your credit score. Just make sure that reports are retrieved through the bureaus or a legitimate score seller.
Myth: Age, sex, and income are factors that affect your score. None of this information plays a role in determining your score. A higher income may make it easier to pay off debts, but income and net worth have no impact of credit scores.
Myth: A credit score can be destroyed by shopping for a loan. When seeking to extend credit, too many inquiries can have a negative impact your credit score. However, when several inquiries are made by the same type of lender with in a 14 day period they only count as one inquiry against your credit.
Myth: Your score can be hurt by credit card offers.
When companies offer you their credit cards it does not have any affect on your score. Unless, your take advantage of all the offers and carelessly use all of the credit available. The number of credit cards a person manages does not matter. The important thing is maintain a low ratio of used to available credit.
Myth: Credit scores of married couples are shared.
A credit score can only belong to one person, just as one person can only have one score. A married could does not share a credit score, but their scores could have an affect each others. When opening a joint account, the information accumulated from that account’s activity will be reflected on both people’s credit report. If all of the couple’s accounts are joint, then their scores will be somewhat similar.
Myth: Closing unused accounts improves credit scores.
Unused accounts most likely contain available credit, which is an important part of a credit score. Closing unused accounts removes available balances from the equation. This causes your ratio of used to available credit to increase, ultimately affecting your credit score.
Myth: Paying off bills is a quick way to boost credit.
Over time, a good record of properly paying bills will improve credit. Credit reports reflect your long term history, scores do not change overnight.
Learn more about how credit scores affect the amount of Dallas home you can buy at TexasHomeCentral.com.




To be sure, we are in the middle of what might be considered the biggest disservice ever perpetrated on potential home buyers. The truth is that mortgage money is as available today as it was a year ago and loans are being made every day with little or no money down. Who are these lenders and where can you find one? They may be right down the street – you just have to know where to look!
As far is this relates to the mortgage industry, good credit is always a plus when you are trying to buy a house. I can’t see the new model making much of a difference either way unless borrowers are serial delinquents, in which case they will see a decrease in their scores. With the abolition of most 100% financing programs, most lenders are now requiring scores above a certain level just to be able to obtain Mortgage Insurance for any program above 80% LTV. There are different scenarios too numerous to list that pertain to the new rules. However, the best way to find out your ability to purchase a home is to contact me directly so we can discuss your individual situation. Have a great week!
Long-term extension of the deduction for mortgage insurance. The bill extends the deduction for mortgage insurance for seven years (through the end of 2014). Current law limits the deduction for mortgage insurance to payments (including Veterans Administration, Rural Housing Administration, and Federal Housing Administration insurance premiums) made prior to the end of 2007. The bill would provide that payments will qualify for this deduction whenever they are paid so long as the contract is entered into after 2006 and before 2015. This proposal is estimated to cost $570 million over the next 10 years.

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