Currently viewing the tag: "credit score"
You’re submitted your application and supporting documentation – what’s the next step?
It’s time to talk details now. You’ve supplied everything you needed to in order to get the process started. Credit has been reviewed, taxes, paycheck stubs and bank statements have been sent in and your pre-qualification is validated. Now, here’s where the education really starts!
It’s time for a sit-down, in my in my book, this is the most important meeting you need to have before buying a home. It should be face-to-face, but can be handled over the phone if necessary.
When you see the word DISPUTE on a credit report, you have an instant stopper in closing on your home. Sure, you may have a 740 credit score and have followed all the tips to keep your credit looking fantastic, but the devastation of a dispute isn’t as widely recognized. Why does a dispute on your credit report matter? Read on….
Federal Housing Administration is a federal agency that provides mortgage insurance for residential loans with lower down payments than conventional mortgage loans. When you purchase a home using a FHA loan, you pay an insurance premium that covers the lender (end loan servicer) in the case of your default. FHA doesn’t actually “lend” the money, but it does set underwriting and construction standards on the loans that it insures.
It’s no secret that good credit scores are needed to get a mortgage. It’s also no secret that the definition of a good credit report has changed dramatically in the last couple of years, which unfortunately has made it harder for many to qualify for lending. These are the five components that we explain to clients while reviewing their credit report with them:
Ever wondered exactly what is behind an underwriting decision? Or why some borrowers sail through underwriting, while others struggle? Knowing the 5 C’s of credit will help you understand just what a lender is looking for.
RE-PULL A CREDIT REPORT AT THE CLOSING TABLE? Starting with new applications as of yesterday, 6/1/10, Fannie/Freddie are requiring that lenders pull a final credit report just prior to closing. If a buyer’s credit scores have lowered, new debt has occurred, etc, then this could stop a closing in its track.
Now more than ever, your credit score can ‘make you’ or ‘break you’. Credit scores are essential when you are looking to buy a home, get a mortgage, buy a car, insurance, and even help determine the interest rate you pay on your credit cards. You cannot ignore your credit score!
For real?? Yes, your 720 credit score may not be all it’s cracked up to be. To get a home loan, your mortgage lender have to validate your credit.
So you’ve been told you have great credit and to focus on your number, whatever that might be and then I jump in and tell you that 720 you’ve worked so hard for just might not cut it anymore? What’s up with that?!? I know, it’s next to impossible to catch onto this moving target out there known as your credit score.
Watch this video for information on the upcoming First Time Home Buyer Class
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