Page 31 - The Latest Homebuying Guide

www.thelateshomebuyingguide.com

Compare the cost of a mortgage at various credit scores:

Interest Monthly Total Total
Credit Principal Term
rate payment Interest payment
Exceptional 200,000 4.16 30 973 150,413 350,413

Good 200,000 4.56 30 4258 167,385 367,385

Poor 200,000 6.45 30 1479 252,724 452,724

In the above example, the difference between poor credit and one
that is exceptional, is $102,311. Let that sink in for a minute! Think
about what you could do with $102, 311.

Make it your commitment in life to always have
exceptional credit, and to do the things that help

you to achieve it.

The anatomy of your credit
Your credit is made up of your credit history and your credit score.
Your credit history is a record of everything you have taken on
credit, and how you honor your promise to repay. If you pay back
as you promised, you will have a good credit record and score,
provided you manage the other aspects of your historical report.

Each time you buy something on credit and make the payment, the
lenders and or businesses report it to one or a combination of the
three credit bureaus. These are Experian, Equifax, and TransUnion.
These credit reporting agencies then put together all of your
activities and create a record of your payment history and
relationships, which become available for the lenders to see, and
use for your future credit applications. These payment histories
and overall management of the accounts are then graded, which

31