Blog Category: credit score

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9 Mortgage Myths To Stop Believing

Buying and financing a new home can be a daunting task and many of us turn to friends and family for advice. Watch out for mortgage myths. The only experts in the mortgage field….are the experts in the mortgage field! Friends and family might not be the experts they think they are. The mortgage guidelines and interest rates are changing so frequently that unless someone is in the mortgage field as a full-time job, you should only take advice from a mortgage professional. Read More

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Credit Score Simulator

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 More

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Credit Scores Falling

Are your credit scores falling? Don’t let your credit score fall down. There are many current homeowners who can afford their mortgage, but are upset that their home is not worth what it once was. These people are called “strategic defaulters”. But walking away from a mortgage, especially one you can afford, is a bad idea. Read More

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Don’t Let Your Credit Cards Drown You!

Don’t Let Your Credit Cards Drown You! 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 use your credit cards! Read More

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How To Find The Best Mortgage Lender

When comparing mortgage lenders there are many things to consider. If you want to save time follow the below steps on how to compare mortgage lenders. Time is valuable and these six steps should help you find a good mortgage lender: Read More

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Is Your Credit Active Enough?

Is your credit active enough? I have a client who did not have active enough credit, and got a loan declined. Fortunately there were enough other lenders that saw the situation differently, but the topic merits discussion. Read More


Late Payments On Your Mortgage

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. Read More

Minimum Credit Scores

The latest minimum credit scores are simple for an FHA loan. If you have at least a 620 credit score, you can get an FHA loan.

With Conventional loans, a 720 credit score is preferable. You may get a loan with a lower credit score, but it would cost more points (i.e. an “add-on”).

There are complicated matrices used on Conventional loans and those may show that a lower credit score can still get a Conventional loan, but trust that if you are going for a Conventional loan its best to have a 720 credit score.

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My Credit Score Is 760. No It Isn’t.

If you’ve looked up your credit score on your own before then you know your score, right? Well, you may not know your accurate score. You may only know one score instead of all three. Mortgage lenders use all three scores, one from each of the large national credit bureaus. These are Equifax, TransUnion and Experian. So if you see a 741 score on a consumer credit report you pull, a mortgage lender may see a 698, a 723, and a 741. And the mortgage lenders use the middle credit score, or the 723. That may cause a change in the terms that are being quoted to you. Read More

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Problems With Your Credit Score? No Credit Score??

Problems With Your Credit Score? It seems all banks and all types of loans today require a credit score to get a mortgage. I know of only one bank that still allows what is called “an alternative credit history”, it seems 99% of all banks now mandate the need for a credit score. But there are a few people, very few, who don’t use credit, have not gotten a credit card, and pay cash or write checks for everything. I find these people to be younger, or much older. The younger people still have not considered building a credit history, and some much older people just never used credit or were never comfortable with it. Read More

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Rapid Rescore And Improving Your Credit Score

Mortgage lenders have the potential to improve a mortgage borrower’s credit score. A rapid rescore can improve your credit score. Having an improved credit score can possibly lower your interest rate and/or your Private Mortgage Insurance (PMI) if your loan has PMI. However, improving a credit score is no guarantee of getting lower mortgage terms. Also, improving your credit score may not even be needed. Why? Read on. Read More

Grinch That Stole Christmas Statue

The Grinch That Stole My Mortgage

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 More

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Three Credit Reports to Get a Mortgage?


A lender pulls three credit reports to issue a mortgage? Yes, potentially. One when you get pre-qualified. Then another at loan application, if loan application and settlement happens 120 days or more after pre-qualification. And 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 More

What Is A Credit Inquiry

What Is A Credit Inquiry?

When you apply for credit you are authorize the creditor 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.

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