Blog Category: credit

credit report

Alternative Credit History To Help Qualify For A Mortgage

Can you use an alternative credit history to help qualify for a mortgage? Banks typically want you to have to have at least four pieces of credit. Sometimes when I pull a credit report for a first time home buyer or a younger person, I see a credit report with one credit card on it, and on occasion nothing at all. Some people only use checks, cash and debit cards to pay for things. Without a credit history comprised of at least four different pieces of credit, it may be difficult to get a loan.

Apparently banks want to see more numerous items of credit history, to feel comfortable extending a large piece of credit (like a mortgage).

However, there is a solution. Banks will allow you to build an alternative credit history. This means that we can show them a 12 month (at least, or you can show a longer history if it exists) credit history of things that normally do not show up on a credit report. Read More

credit cards

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

credit report

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

credit cards

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


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

credit score

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

credit reports

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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