What is a FICO Score?

In 1958, Bill Fair and Earl Isaac, a mathematician and engineer, formed a company in San Rafael, California. They created tools to help risk managers make a better decision when taking financial risk. Today, 90 percent of all lenders use the FICO score, first created in 1989 by Fair Isaac, and it’s the only score Fannie Mae and Freddie Mac, the Federal Housing Agency and Veterans Affairs will accept in underwriting loans they guarantee.

How do I find my credit score and how do I clean it up?

How your credit score is calculated is the first step in understanding how to qualify for Boston condo loan. The FICO scoring system takes several key aspects of your credit file in order to come up with the number that the creditors use to approve or deny a mortgage (loan).

There are three creditors who report your financial history, it is possible that your credit score will vary among Equifax, Experian, and TransUnion.

Each one might come up with a different score. That’s why some lenders may approve you for a mortgage and another lender may deny you — they could be using different information pertaining to your credit history.

It’s important to check all three of your credit reports before you start your Boston condo search. Once you have the facts, you can develop a plan to get your finances back on track.

What Items Can Damage Your Credit Score?

There are three areas where your credit scores may be impacted, these common damaging items include:

  • Delinquencies
  • Collection Accounts
  • Charge Off Accounts

As you can see by the charts below, there is wide room for improvement by getting inaccurate and damaging information off of your credit score, and the sooner, the better:

Boston condos for sale

Boston condos for sale

Boston condos

Boston condos

You’re entitled to free copies of your credit reports from Equifax, Experian, and TransUnion each and every year. You can’t dispute anything until you know what’s on there, so this is the absolute first step to cleaning up your credit. Go through each section and look for any potential red flags, including:

  • Inaccurate personal information, such as your name or social security number
  • Accounts that don’t actually belong to you
  • Inaccurate account details, such as amounts owed or credit limits
  • Missing information, such as closed accounts being listed as open
  • Outdated information, such as negative items still listed after the seven- or ten-year limit

Determine Which Mistakes to Dispute and Gather Evidence

Any mistake can be disputed, especially if it’s hurting your credit score. Go through each of your credit reports and mark which ones you want to challenge.

You can contact a company like Sky Blue Credit Repair and have them help you with your dispute process, which can be especially beneficial if you feel overwhelmed or unsure of the process.

Once you clean up your credit report, contact us to start your home search.

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Contact me to find or set up an appointment to start your Boston condo buying process.

Boston condos

Boston condos for sale

SEARCH FOR CONDOS FOR SALE AND RENTALS

For more information please contact one of our on-call agents at 617-595-3712.

Updated: January 2018

 

Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

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