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 »
Buying and financing a new home can be a daunting task and many of us turn to friends and family for advice. But 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 the rest of this entry »
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 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 »
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 »
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 »
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. Here are the important details: 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 »