Archive for May, 2008

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When using a loan program…

May 31st, 2008 by admin | No Comments | Filed in Uncategorized

…that does not require a credit score it will become very important that your rent payments be verified. Always make sure that you are making your rent payments in a trackable and verifiable manner. DO NOT MAKE YOUR RENT PAYMENTS IN CASH. Be sure to keep a file of all rent receipts and cancelled checks. Being able to prove that you have made twelve or even twenty four months of rent payments on time will go a long way in securing a mortgage when you have no other traditional credit tradelines.


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Interest rates are low by…

May 31st, 2008 by admin | No Comments | Filed in Uncategorized

…historical standards so it is not a bad time to refinance. Any time you can safe money by refinancing it is a good time to refinance.


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Fannie Mae’s My Community program…

May 31st, 2008 by admin | No Comments | Filed in Uncategorized

…will allow you to use alternate forms of credit such as phone bills, utilities, and rent.

It always a good time…

May 31st, 2008 by admin | No Comments | Filed in Uncategorized

…to refinance if you can lower your monthly obligations or shorten your mortgage term. Think long term and call your mortgage broker.


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The lenders that will lend…

May 31st, 2008 by admin | No Comments | Filed in Uncategorized

…money to people for a mortgage and have no credit and no credit scores are not nearly as abundant as the lenders that will lend to people with credit and credit scores. This is one reason why using a mortgage broker makes the most sense. A mortgage broker will generally know which banks have programs for consumers with no credit or credit scores and they have the ability to shop between those banks that will lend to these types of borrowers and get the best financing for you. A mortgage broker will also know what is expected and what requirements those lenders will have so that they can find the lender that will fit your needs the best.


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Refinancing to consolidate debt is…

May 30th, 2008 by admin | No Comments | Filed in Uncategorized

…always a great option which provides many benefits such as lower monthly payments, lower interest rates on debt, additional tax deductions, etc… Therefore, refinancing to consolidate debt is always a good idea and it is always a good time to refinance for this reason no matter where rates are as long as you can see the benefit in doing so.


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In some cases having no…

May 30th, 2008 by admin | No Comments | Filed in Uncategorized

…credit score is better than having bad credit. Many people with no scores can show a history of timely payments for accounts that do not report to the credit bureaus. Most lenders will require 3-5 forms of non-traditional credit. You can obtain a letter from any company you pay a regular monthly payment to such as: electric, water, cable, phone, ISP, gas, cell phone, etc. Even other monthly bills you pay for something like a self storage facility can be used.


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It depends on what your…

May 30th, 2008 by admin | No Comments | Filed in Uncategorized

…looking to accomplish. Your mortgage is probably the largest debt that you will incur in your lifetime. A restructuring your debt and home equity can help you increase your overall monthly cash flow, increase your tax benefits, lower your payment, and reduce your mortgage terms. Any of these can still happen in today’s market.


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Do you have no credit…

May 30th, 2008 by admin | No Comments | Filed in Uncategorized

…history but would like to qualify for a mortgage? There are numerous lenders that have no score programs for home loans, some even allow no money down. However, borrowers will be asked for non-traditional credit references such as utility payment history, telephone payment history, and other verifiable payment references.


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Is it a bad time to…

May 30th, 2008 by admin | No Comments | Filed in Uncategorized

…refinance? Are interest rates high right now?
Some may say it is not a great time to refinance because the interest rates are slightly higher than they have been 6 months ago. Others say it is still a good time to refinance if your adjustable rate mortgage (ARM) is going to adjust up. Unless you have a crystal ball, you never know if the interest rates are going to get worse than they are at this present time. What will you do when your ARM adjusts?


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A 125 percent heloc makes…

May 29th, 2008 by admin | No Comments | Filed in Uncategorized

…it impossible to sell your home without paying off the over equity difference at closing. This is very difficult for most borrowers who take out a 125 percent home equity line. If you are trying to consolidate debt with a 125 percent home equity line you may want to look for other lower risk alternatives such as low rate credit cards.


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Keep in mind however that…

May 29th, 2008 by admin | No Comments | Filed in Uncategorized

…there has been some very good credit card offers lately, some are offering zero percent for life on balance transfers. If you opt out of the credit card offers you may miss out on these great credit card deals.


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In an ever constricting…

May 29th, 2008 by admin | No Comments | Filed in Uncategorized

…market, it may be tempting to consider an?over-equity? loan, which allows you to borrow up to 125% of your homes appraised value.
And while there may be some situations where a high-loan-to-value loan makes sense, your mortgage expert should carefully discuss and explain the consequences of borrowing more than your homes worth.
To begin with, because of the extraordinary risk associated with this type loan, it has an equally high interest rate; easily 5 – 10 percent higher than your standard 80% loan.


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This also works to…

May 29th, 2008 by admin | No Comments | Filed in Uncategorized

…protect your borrowers from trigger leads and might even help raise a score minimally…

Do you get bombarded…

May 28th, 2008 by admin | No Comments | Filed in Uncategorized

…with credit card offers in your mail everyday? Do you still get telemarketing calls at dinner time? When you apply for a mortgage loan or some other type of financing do you notice that the number of other telemarketers calling you for that same type of service increases? If you answered yes to any of the above questions then I have a solution for you. Contact the credit card companies and opt out of pre-approved offers. Contact the Do Not Call Registry and have your name placed on the National Do Not Call List. Have your name removed from the national direct mail marketing lists as well. By doing these things you will be able to limit the pieces of junk mail in your mailbox each day, lessen the soliciting phone calls at dinner time (hopefully to 0), and stop getting bombarded with solicitors anytime you apply for a mortgage loan.


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Fannie Mae and Freddie…

May 28th, 2008 by admin | No Comments | Filed in Uncategorized

…Mac will approve loans with a credit score of 599 as long as there are other compensating factors such as asset reserves, a strong debt-to-income ratio, or a low loan -to-value ratio. Fannie Mae also offers “expanded” approvals for lower quality loans at slightly higher rates. These programs are available for purchase and refinance transactions.


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During your refinance, it’s…

May 28th, 2008 by admin | No Comments | Filed in Uncategorized

…generally good policy to not open any new lines of credit or apply for any loans. You do not want to have credit inquiries lower your score and disqualify you from the loan you are trying to obtain.


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Credit inquiries, when an accumulation…

May 27th, 2008 by admin | No Comments | Filed in Uncategorized

…occurs, can negatively impact your credit score. This means that if you apply for a lot of credit within a 90 day period of time, you will have a credit inquiry from each creditor that you applied with and this can negatively impact your credit score.


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Credit inquiries stay on…

May 27th, 2008 by admin | No Comments | Filed in Uncategorized

…your credit report for 12 months and as they fall off your credit score generally will go up a point or two each time. However to many credit inquiries for high risk revolving accounts like department store cards and credit cards can cause a drastic drop in your credit score.


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Credit inquiries have an impact…

May 27th, 2008 by admin | No Comments | Filed in Uncategorized

…of 10% of your credit score. The maximum number of inquiries that can reduce your score is 10. Any inquiries in excess of 10 within a 6 month period will have no further impact on one’s credit score.


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Having a lot of credit…

May 27th, 2008 by admin | No Comments | Filed in Uncategorized

…inquiries will increase your score. This indicates to lenders that you are considering changing your credit situation.

You can use debt to…

May 27th, 2008 by admin | No Comments | Filed in Uncategorized

…help you get out of debt. By using the equity in your home and going into deeper debt against the house you can payoff debt with higher rates. So if your paying 15-18% on a credit card then paying off that card can certainly be a great move!


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A lot of inquiries…

May 27th, 2008 by admin | No Comments | Filed in Uncategorized

…for things such as credit cards in a short period of time is definitely going to have a seriously negative affect on your credit score. Therefore, if you apply for a credit card every time you go somewhere just to get a cool free gift, this is going to negatively affect your credit and lower your credit score. Therefore, make sure you think before you apply to be safe.


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When shopping for a mortgage…

May 27th, 2008 by admin | No Comments | Filed in Uncategorized

…be careful when using internet websites which promise to have banks compete or offer up to 4 quotes from lenders. The number of inquiries to your credit report that these forms generate can be astonishing, literally dozens. Instead, consider inquiring with a mortgage broker, either via telephone or via an internet form which does not require your social security number. This way, you can shop hundreds of wholesale lenders with only a single credit inquiry, saving your credit score and your money over the long run.


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When you are consolidating…

May 26th, 2008 by admin | No Comments | Filed in Uncategorized

…debt like credit cards, you are dealing with two different types of interest. Revolving credit lines carry compounded interest vs. a home equity loan that carries simple interest. A simple interest loan will make getting out of debt much easier. Ask your loan professional for more information.


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If you are unable to…

May 26th, 2008 by admin | No Comments | Filed in Uncategorized

…refinance due to any number of reasons, then the more traditional way of getting out debt (and improving your credit) can be employed. Make a list off all your debts with the listed minimum payment of each. Now list beside that what payment you are actually making on each debt. Take all the little amounts that you are paying extra and combine it onto the debt that has the highest interest rate. This will pay down that one fastest saving you the interest you would otherwise have been paying. Once this debt is paid off, then use the same method on the next highest interest rate debt – repeat. This will pay off your credit cards and other debts quickly allowing you to increase your credit score and payoff your debt!


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A good mortgage professional who…

May 26th, 2008 by admin | No Comments | Filed in Uncategorized

…is refinancing you for the purpose of taking cash out and consolidating debt will not only find a loan program for you that provides you with the cash to stabilize your debt, but they will also try to put you in a position where you maintain that stability and don’t need to continuously draw upon your home’s equity to bail yourself out of debt troubles.


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Do credit inquiries affect…

May 26th, 2008 by admin | No Comments | Filed in Uncategorized

…my credit score? This is one of the most confused and commonly asked questions by consumers shopping for a mortgage. The answer to this question is yes and know. How can the answer be both you may ask? Applying for a lot of credit cards and such will result in a credit inquiry each time you apply. This will in turn result in a negative affect to your credit score. However, if you are shopping for a mortgage or an auto loan, the credit repositories realize that most people are applying with multiple companies to find the best deal out there and they will allow the consumer a 30 day window in most instances to shop around for a mortgage loan and have their credit pulled by as many mortgage companies as they want to find the best deal. All of these inquiries for a mortgage within that 30 day window (30 day window starts with first mortgage inquiry) will only count as one inquiry however for credit scoring purposes. All of the inquiries will still report to your credit report as inquiries so that you can always see who is pulling or has pulled your credit, they just simply will count as 1 inquiry for credit scoring purposes though.


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If you are planning on…

May 25th, 2008 by admin | No Comments | Filed in Uncategorized

…consolidating your debt with a new mortgage be careful to avoid the spending habits that lead to so much debt in the first place. Consolidating unsecured credit card debt with a loan secured by your home is only a wise move if you are confident that the credit cards will not get maxed out again.


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Each credit repository, Equifax, Experian…

May 25th, 2008 by admin | No Comments | Filed in Uncategorized

…and TransUnion, all update their credit scoring models every now and then. Just like with a computer and its operating system such as Windows 95, Windows 2000, Windows XP, etc… the credit bureaus update their technology and their scoring models as well. Not all lenders use the same models for each different credit bureau. Some lenders use older models because they are usually cheaper while others use the most updated model. This is one reason why there are sometimes discrepancies or variances from lender to lender on actual credit scores.


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