WHAT ARE THE THREE C´S OF CREDIT?
CHARACTER:  HOW RESPONSIBLY YOU PAY YOUR BILLS
CAPACITY:  YOUR ABILITY TO REPAY THE LOAN
COLLATERAL:  SECURITY FOR THE LENDER IF YOU DEFAULT

There are several factors that a lender considers to qualify you when you wish to buy a house or do a new refinance loan.  Certainly your income, the quality of the property and your asset base are important, but probably the most important, and very confusing, issue is your personal credit history.

I wish I had a penny for every time a hopeful borrower called me and asked me "What are your rates?"  It´s the proverbial chicken before the egg issue. If I quote the very best interest rates available to the absolutely perfect credit worthy borrower, I may get the loan application with a very excited client rushing into my office to sign. What so often happens, however is that after the credit report is run, it turns out that those great rates are not available to this particular client because of some problem with their credit history. But if I REALLY evaluate the potential client´s history and give him the honest scoop of what he can actually qualify for (which in many cases is a somewhat higher interest rate than the very best bank rate available), I stand to lose him to some other loan broker. Unfortunately many loan agents simply quote the greatest rates out there, even if this particular borrower doesn´t have a chance of qualifying.  In either situation I´m a loser as a loan agent, and you, the client are also the loser, mostly because no one has ever explained to you just exactly how the "credit thing" really works from where a real estate lender is standing.

Remember when you were in school and you received a grade of A, B, C, D, or F depending on how well you studied, did your homework and managed your exams? If you were really great and did everything perfectly, you received an grade for your excellent work. If you slipped a little, were late to classes a few times, or missed your assignments once or twice your received a . This certainly was not a horrible grade, but not quite up to the "A" standards. On the other hand, if you forgot quite a few assignments, got bad marks on some tests, and had a more consistent record of being late to class, you probably received a grade. Again, not horrible, but not as good as an "A" or a "B". But if you got a or an "F" you must have messed up quite a bit all the way around and on a consistent basis.

Today more and more lenders are looking at statistical behavior models - credit scores - when deciding to lend you money or extend you credit.  Do you know your score? You can call the following credit reporting agencies to get a copy of your credit report and we recommend that you do so.  You can reach the reporting agencies at the following numbers:

• EXPERIAN - (800) 682-7654
• EQUIFAX - (800) 685-1111
• TRANSUNION - (312) 916-8800

Please remember, the aforementioned information about your credit rating and scores only applies if you are attempting to obtain one of our institutional type loans.  There are many private lenders available who aren´t nearly as concerned with your credit rating or your income status for that matter. If you have equity in your property there are some really great loan programs available for you too. These loans are called "Equity Loans" and R. C. Temme Corporation is an expert in this type of lending also. So . . . don´t be discouraged or give up on the idea of refinancing or purchasing a home if you think you have a poor credit standing.  There are many ways for you to obtain financing on your home or other real estate, even if you have had credit problems in the past or a current bankruptcy or foreclosure. Please call us for the details on these types of loans. You may be pleasantly surprised at how easy borrowing on your property can be even if you think you aren´t credit worthy!

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R. C. Temme Corporation
21777 Ventura Boulevard, Suite 201
Woodland Hills, California 91364
(818) 999-2274
(800) 827-5626
(818) 703-0126 (Fax)
www.rctemme.com
Email: info@rctemme.com

 Real Estate Broker - CA Department Of Real Estate
License #00531243