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 »
If you’ve looked up your credit score on your own before then you know your credit score, right? Well, you may not know your accurate credit score, and you likely only know one credit score instead of all three. One problem with credit scores is that lenders use three credit scores Read the rest of this entry »
There is a new underwriting rule change that is going to be very painful for mortgage borrowers. It has to do with open 30 day charge accounts. The rule says for open 30 day charge accounts that do not reflect a monthly payment on the credit report, or 30-day accounts that reflect a monthly payment that is identical to the account balance, lenders must verify borrower funds to pay off the account balance. The documented funds must be in addition to any funds required for closing costs and cash reserves. This is very important. It used to be Read the rest of this entry »
One thing that gets a lot of people in trouble with their credit scores is a past due account, also known in the industry as a collection or a collection account. These collection accounts stay on your credit report for 7 years. That is bad enough as it is, but it gets worse. Let’s assume you have an outstanding five year old collection Read the rest of this entry »
Justin: We are on. Hey Brian, how are you?
Brian Martucci: Hey, good, Justin.
Justin: Good. Well, happy Thanksgiving to you. I know this is kind of a holiday weekend, but what you have to say is pretty important, especially with everyone hitting Black Friday today.
Brian Martucci: That’s right. Sure is.
Justin: Okay. So let’s talk a little bit about credit scores. Read the rest of this entry »
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 »