I get asked frequently what I think if a client pays their mortgage on the 14th of each month, right before the payment is considered late. This is usually done because people think they are going to save money by keeping the money in their bank account from the 1st of the month through the 14th of the month. It saves $1.25, and that is all! "How so?" you might ask. Below is the math: Read the rest of this entry »
There has been something that has been very problematic in the mortgage industry in the last few years, and is becoming more so lately. It is what we call trigger leads. A trigger lead is a lead that mortgage companies will purchase from the credit bureaus. When someone applies for a new mortgage the first thing that happens is they get their credit pulled. This is considered the trigger for another mortgage lender to call and try and steal the deal. So as soon as you apply for a mortgage the credit bureaus are selling your data to Read the rest of this entry »
No, not Congress! The vulture collection agencies. What are vulture collection agencies? I happen to know from personal experience. A vulture collection agency is a collection agency that buys collection accounts from other collection agencies. Huh? Here’s how it works: Read the rest of this entry »
You could easily find your credit score falling if you are not careful. And then when that happens, you may fall down yourself and get a boo boo. Credit scores are more sensitive than you know and can quickly drop. Read the rest of this entry »
I think most of us have had a dispute with a creditor, certainly minor ones. Who has not argued over a charge with a credit card company, a cell phone company, a retailer, or argued over a parking ticket. And sometimes we are so sure we are right, we just don't pay. And then we are so sure we are right, we ignore the mail that inevitably comes after the fact seeking payment. Big mistake. Read the rest of this entry »
“I’ll gladly pay you Tuesday for a hamburger today”-Wimpy. Why would it ever make sense to give Wimpy a hamburger today, for the promise of payment next Tuesday? It would not. Payment would likely not be forthcoming. Would you let someone else tell you how much you can earn? Why would it ever make sense for you to yield to someone else to decide what the amount is that you should earn for a living? Read the rest of this entry »
When you apply for credit from a mortgage company, credit card providers or an auto finance company, you authorize them to "inquire" to a credit bureau to get a copy of your credit report. You would later notice that their credit inquiries show as an "inquiry" on your credit report.
Fair Isaac Corporation developed the technologies behind credit scores, which is why lenders may refer to your credit score as your "FICO score." Fair Isaac Corporation says that for inquiries for a new mortgage made in a short period Read the rest of this entry »
This is going to come across as a lecture, and well, it is. I have had some loans come close to being denied, because people cannot control their credit card use. When you apply for a mortgage don't Read the rest of this entry »
Fannie Mae has announced new rules regarding credit scores that will impact the terms you get on a mortgage. For many years there have been rules that say you pay a higher rate with a lower credit score. Now Read the rest of this entry »