How to Improve Your Credit Score

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Your credit scores usually determine the price you pay for your money (your mortgages, your auto loans and leases, your credit cards, business loans, etc.). Perhaps the most significant part of your credit report is your credit score. Credit scores range from 350 to 850, with 850 being the best possible credit score that you could receive, and 350 being the worst possible credit score. There are five factors that determine your credit score:

Your Payment History: 35% impact on your credit score

Paying debt on time and in full has a positive impact. Late payments, judgments, charge-offs, collection accounts and bankruptcies have a negative impact. If you have had any bankruptcies within the last 7 years, it will seriously affect your ability to borrow or establish new credit accounts.  If you have had any judgments within the last several years, it is very important that you pay off the judgment and get a "satisfaction of judgment" from the court. Any unsatisfied or recent judgments will make a bad dent in your credit scores and adversely affect your ability to borrow. Usually, judgments and liens must be paid prior to the closing. Timely mortgage payments are weighted heavily by the scoring systems and are one of the most vital requirements that lenders look for when evaluating your credit history. Many times a single late mortgage payment within the last 12 months can hold up your file or spell the difference between the best interest rate and the next credit level.

What is Mortgage Planning?

Step #1: Initial Conversation Our initial conversation will focus on these questions:

• What are your housing obectives and why?
• What does your current cash flow situation look like?
• What large expenses should we take into account as we help you develop a budget for the future (college funding, retirement planning, elder care needs, etc.)?
• What can I do to help?

Step #2: Analyze & Evaluate Your Options

The next phase of our relationship will focus on:

• What are your housing, debt planning and cash flow options?
• What, if any, mortgage products and strategies would be useful to you?
• What is the likely short and long-term impact of these mortgage options on your overall financial situation?

Step #3: Develop & Implement Your Personal Mortgage Plan

Once we've discussed your options, and how these various options may impact your overall housing and financial situation, it's up to you to decide on which plan of action works best for you. I'll be here to answer any questions and be a resource to you in any way I can. I'll also coordinate the whole process with you and other professionals such as CPAs, CFP® professionals, attorneys, Realtors, builders, insurance professionals and other qualified advisors.

Step #4: Monitor Your Mortgage Plan Through an Annual Mortgage and Housing Review

Mortgage planning is a life-long process because your financial situation is likely to change from time to time. As your mortgage planner, it's my role to help you monitor these changes as needed and through an annual conversation. Most often, this process involves periodic assessment of:

• Your fluctuating cash flow needs
• Changing interest rates and housing market conditions
• Family changes and life events including job changes, college funding, retirement planning and elder-care needs

Here's how mortgage planning is different than the traditional "shopping for a mortgage" experience:

"Mortgage Planning" with a Certified Mortgage Planning Specialist (CMPS®)	"Shopping for a Mortgage" with any of the 500,000 + Mortgage Salespeople in the US
5-Star Experience	Overwhelming and/or Confusing Process
Focus on Which Mortgage Options Fit into Your Life, and Why	Focus on Whether You Fit into the Mortgage Lender's Box, and How
Consider the Mortgage Transaction in the Context of Your Overall Financial Situation & Objectives	Consider the Mortgage Transaction "In a Vacuum"
Customized Options for Your Scenario	One Size Fits All
Mortgage Salesperson Who Puts His/Her Relationship With You Ahead of the Transaction	Mortgage Salesperson Who Puts the Transaction Ahead of His/Her Relationship With You