credit scores: Mortgage 101 in New Jersey – Getting to know the borrower
- 07/13/11 12:01 PM
Mortgage 101 in New Jersey – Getting to know the borrower’s wants and needs In today’s delicate world of mortgages in New Jersey and any where else, getting a mortgage not only takes understanding, but patience. I am still finding many loan officers trying to fit that round peg into that square hole. Let me explain…. I currently have a client whose realtor got him to talk to her loan officer. This loan officer has my borrower pre-qualifed for about $35,000 more than I do. How can there be such a difference? Before I get into the differences, let’s try and … (27 comments)
Understanding Mortgage Insurance and the different types The keys to home ownership can be tricky and confusing, unless handled by a true professional loan officer. You’ll sometimes hear loan officers and or realtors talk about one mortgage program over the other, telling you how great it is or that the monthly mortgage insurance is less than the other program. But wait, one main ingredient is still missing in this whole equation. What are the credit scores, aka fico scores. Why is this important? When comparing a conventional loan to any other type of mortgage loan, many of the MI … (31 comments)
Do you feel that today's mortgage gudelines are hurting realtors from selling more homes? Do you think it could be the buyer not being in a good position?
People, I get the fact that lending guidelines have become more strict over the last 12 months. I think I have seen it all in the 18 + years that I have been in the mortgage business. But in my honest opinion, I think the biggest hurdle has been the credit score requirements. But is it a challenge that can be over come in a short time period? Read more … (38 comments)
Borrower : I would like to see this specific home... Realtor : Have you spoken to a loan officer? Borrower : No, not yet. Realtor : Do you know your credit scores? Borrower : Yes, I pulled my credit online and I have a 680, 705, and a 695, so I should be good to go, right? Realtor : Those are very strong scores, so let's look at a few houses and then I can get you qualified.
Your Credit Score is more than just a number People, it's not that simple. I have seen buyers … (21 comments)
It’s very easy to assume and or want something without always thinking it through. Emotions can play a role in your decision when purchasing a new home. But are you always asked the right questions or led down the right path? How much of a mortgage can I have now is a question often asked. But what about what you can personally afford, without strapping yourself financially on a monthly basis. Many focus on the interest rate or how much of a house they can afford and lose site of their basic goals.
Trying to understand Credit Scores can seem to be complex at times, especially when there are so many so-called experts online and or credit repair companies. Trust me, I have sat next to loan officers in the past that just made up things as they went along. Many that come to me and seek my help or advice usually seem to be those borrowers that were previously approved. Yet are denied last minute and in most cases it was because of their credit. And for two months while in processing, that borrower was told all was okay. So how can this be? … (40 comments)
When qualifying for a mortgage, the borrower(s) need to meet three main qualifications. Income – There are specific front and back end ratios depending on the mortgage program. And sometimes you can exceed such ratios with compensating factors. Credit – Mortgage programs now require credit scores, aka fico scores. You also need to show good credit performance on how you can handle your credit or that you have established credit. Assets – Depending on the mortgage program, you might need assets to close and or to show a specific number of reserves. I want to talk about … (6 comments)
credit scores: You don’t need a 700 credit score & 20 percent down to buy a home – Credit Scores Part 1
- 11/02/10 02:50 AM
Your credit scores are important. Credit sometimes seems easy, yet at times can seem so complicated and might not make sense why your scores might be lower. One thing that I want to make clear is that you don’t need 700 credit scores and or 20 percent down to buy a home. The mortgage industry has gone crazy lately, so you will hear a lot of chatter of misinformation out on the streets that you need excellent credit and a lot of money down. What is not explained is that there are mortgage programs that allow for less than perfect … (8 comments)
Okay, Jeff, I have heard that you could do a FHA streamline. Yes, this is true, but FHA now states that you can't make application on the new refinance until the borrower has made 6 monthly payments. This is stated in Mortgagee Letter 2009-32. There are 2 types of FHA Streamlines.
1.) FHA Streamlines with an appraisal - Even if you bought a new home with lots of equity, you have to wait 12 + months before you are allowed to use that equity. If … (11 comments)
There has been a lot of talk regarding Credit Scores in the last week after FHA came out with Mortgagee Letter 2010-29 on FHA Loans. Here was my post showing such changes with an explanation. Jeff Belonger's cheat sheet for ML 2010-29. In my opinion, some of the confussion and or arguement with the new FHA loan changes is that FHA says that you can go down to a 500 credit score with 10% down. FHA even says that you can put the minimum down of 3.5% with credit scores of 580 and above. Here is the problem … (23 comments)
FHA just came out with a new mortgagee letter describing the new changes on FHA loans regarding credit scores and LTV's (loan-to-value). Here are the changes : New updates for FHA Mortgages - Changes in LTV & credit scores - seller concessions?
Just the other day, I read this post,"Bending Over Backwards".. A simplified Version of the New FHA Credit Score Guidelines...by Karen Stone, that talked about these changes and laid out the credit score changes. It was this person's simplified version which was written by a realtor. It was well written and the outline was accurate, but … (13 comments)
From the consumer - "I have bad credit".. "my credit is so so"... "my credit is good". "My credit scores are good", etc, etc. I have heard it all and just this alone doesn't make or break you as a potential buyer when wanting to buy a home. The thought process of an average loan officer - "Yippie, my borrower has a 635 credit score and my company's cutoff is 620. This borrower fits the credit ratios also, so I can do the loan." Knowledge is power people. I know some loan officers in the past that made … (13 comments)
Yes, credit guidelines have gotten tougher, but NO, you don’t need a 700 credit score.
Here we go again, with realtors making things sound semi easy. There was a question on Trulia last week, and the buyer said that they heard that you needed credit scores of 700. And what do you do if you have scores from 614 to 620.
Here was part of the answer from a realtor answering the question. "You can actually purchase a home with a credit score in the 500'sdepending on job history, etc. I have … (53 comments)
As many of us search more and more online, through the internet, there becomes a greater chance for misinformation also. Now, this is just my opinion, but it's based on seeing at least 2 blogs a week now that has wrong information within the topic of discussion. I am seeing this even more so when it comes to FHA loans. What disturbs me most is that if we don't question the author of that blog, those reading it will believe it and spread that information as the bible per se. I even went as far as to send an author of … (14 comments)
FHA credit scores have changed for the most part. I just had a client tell me the other day that her loan officer, who she knows and trusts, is trying really hard to make the loan work. Okay, so what are your credit scores? "512/530/548"... rut row. And they are trying what? Trying hard? At this moment, there are only a few investors that will go below 580. But from what I know, it's really tough under 580. Most lenders are at 620 or above. There are a few at 600 and just a few that … (31 comments)
credit scores: 620 Minimums
- 02/05/09 10:33 AM
Borrowers, please beware of this information. This is not true by HUD, FHA, or from Congress. This is false and misleading information. Yes, some investors and lenders are raising their credit scores to 620. Several of us, including myself can still manually underwrite FHA loans down to a credit score of 580, even after 2/12/09. And some of us can still do loans down to a credit score of 530. Per HUD mortgagee letter 2008-22, it states this on page 2. • Borrowers with decision credit scores below 500 and with loan-to-value ratios at or above 90 percent are not eligible … (11 comments)
The British are coming, the British are coming. Okay, so that was over 200 years ago. But now, it's the credit scores are changing, the credit scores are changing. Just in recent days, I have been reading and hearing a lot about the mortgage industry changing the credit score requirements, AGAIN.... But didn't we hear about this about 6 to 12 months ago? We went from most lenders doing down to a credit score of 500 to then a change of not going below 580. Now... some lenders are changing the score to 620. Now, don't panic. Sure, it's … (30 comments)
The one million dollar question. Should you talk to a realtor first and find out what houses you could buy or should you speak to a loan officer first to get your financing options in place? Speak to a loan officer first. Time again, I get consumers coming to me after they found a house and need to settle on it prior to being qualified for a mortgage. Don't you want to know what your payment is? What it might cost you at settlement? Never assume..... Just a FYI : FHA loans might even be your easier … (16 comments)
credit scores: FHA Loans - FHA Mortgages -- What's behind the credit score....
- 04/29/08 08:24 AM
Credit scores..... aka fico scores. I am a firm believer that you can't believe in everything that you read. As you can see the illustration to my left, that it states that the average credit score is 678. I have a hard time believing this and just talked to a few loan officers and even a credit specialist about this. I just don't believe that 678 is the average credit score. If I had to put a number on it, I would say 610 to 620.
Why am I bringing this up? With so many changes to conventional loans … (11 comments)
FHA credit revised........Piecing together your credit can sometimes be confusing. That's why you should always seek a qualified loan officer that is a FHA Expert. In all honesty, credit is not as difficult as it may seem and FHA has made it easier for you to qualify for your dream home. There are just some important facts that the average consumer needs to know.
Several key facts : You don't need credit scores. No minimum credit scores. You need to pay attention to this part, because many lenders will advertise this. But they fail to tell you initially … (13 comments)
I just want to educate people about mortgages and the process.
In regards to lending, I am very creative, intuitive, honest, and one who communicates information, may it be good or bad. I am a loan officer that looks out for your best interest.
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