A Credit Score Simulator can help with “What If” scenarios to determine what you could potentially do to raise your credit score. It can also show you what could negatively impact your credit score. It is important to see how your credit choices might affect your credit score because your credit score will impact the underwriting of your loan, your interest rate quote, and even the cost of your mortgage insurance.
Some of the various things a Credit Score Simulator can measure to see how they will impact your credit score are: Read the rest of this entry »
For most people, your ability to get approved for a mortgage, and the terms you’re offered, depends on your credit report and your history of managing debt responsibly.
Under some circumstances, your credit score can be affected by loans you’re not even responsible for paying. Read the rest of this entry »
If I had one dollar for every person that said, “Please tell me what I can qualify for but do not pull my credit because I know it hurts my credit score,” I would have enough money to make a large down payment on almost any house I wanted. Read the rest of this entry »
A lender pulls three credit reports to issue a mortgage? Yes, potentially. One when you get pre-qualified, another at loan application, if loan application and settlement happens 120 days or more after pre-qualification, then the third check is just before settlement! Yes, now Fannie Mae, Freddie Mac, FHA, and all the rule makers require lenders to check for credit activity just a day or two prior to settlement. 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 »
Some people do not realize how late payments work on their mortgage. Your mortgage is legally due on the 1st of each month except on a home equity line, which may be due at almost any time of the month. I am focused in this blog post more on regular mortgages. It is customary for banks to offer a 15 day grace period Read the rest of this entry »
The Grinch, which in this story is Fannie Mae, just stole Christmas. I must admit, that is dramatic, and not literally true. But they did potentially just steal your mortgage.
Fannie Mae’s current rules allow an underwriter to exclude revolving debt (i.e. credit card debt) from the debt-to-income (DTI) ratio if there are ten or fewer payments remaining. Fannie Mae will now require all revolving debts to be included in the DTI ratio regardless of Read the rest of this entry »
There are a variety of foreclosure alternatives available to homeowners. And there are also a variety of ways that these alternatives impact your credit. Read the rest of this entry »
I have written quite a bit about credit scores this year. Your credit scores are critical in getting a mortgage. Below is a summary on credit.
Minimum credit scores are currently: Read the rest of this entry »