credit scores: Managing Your Credit Scores, Keeping Them High Enough To Buy A Home
- 01/07/16 08:11 AM
Managing your credit scores and keeping them high enough to qualify for a home loan can be easy if you have always had good credit, and challenging if you have had some blemishes. Recent tallies show a third of U.S. credit scores are below 649. Many lenders will lend down to a score of 580 for FHA and VA, and 620 for Fannie/Freddie. However, acquiring a mortgage might be more difficult and more expensive at those lower levels than with higher scores. Here are the fundamentals to guide you in establishing and maintaining a healthy and legitimate credit score. The Somewhat Obvious: Borrow only … (0 comments)
credit scores: No, No, No. Please Do Not Do These Things While You Are In Escrow
- 05/03/13 10:13 PM
As part of Fannie Mae's Loan Quality Initiative (LQI), lenders are required to monitor a borrower's credit throughout the loan process. This can include a "soft" credit pull immediately prior to funding to look for new accounts and inquiries. Here are ten things that a homebuyer should avoid while in escrow: •1. Don't do anything that will cause a red flag to be raised by the scoring system. This would include adding new accounts, co-signing on a loan, changing your name or address with the credit reporting agencies. The less activity on your reports during the loan process, the better. •2. Don't apply for … (31 comments)
credit scores: The HARP Deal, Credit Requirements
- 02/24/12 02:19 PM
The HARP Deal, officially going live to lenders and borrowers on Monday March 19, 2012, has very generous credit requirements, namely: ***NO MINIMUM CREDIT SCORE IS REQUIRED*** Mortgage history is also far less stringent for the HARP Deal than other loan programs. The Fannie Mae (FNMA) underwriting engine is called Desktop Underwriter, or DU. The Freddie Mac (FHLMC) underwriting engine is called Loan Prospector, or LP. Here are the corresponding HARP Deal mortgage history guidelines: Fannie DU: must be current Freddie LP: 0x30 late in the past 6 months and 1x30 allowed in the last 7-12 months As far as Bankruptcy … (2 comments)
credit scores: Don't Forget To Send Your Payment On Time
- 05/08/11 12:49 PM
Don't Forget To Send Your Payment On Time Lately, I have heard many people say, "Who cares if I pay my mortgage late? I don't plan on buying anything anytime soon." Credit dings can take a while to recover from, especially major hits. Per Fair Isaac, your credit score will take an average hit of 40-110 points for a 30-day mortgage late payment, 70-135 point hit for a 90-day mortgage late. Furthermore, there will be a 85-160 point hit for a foreclosure, short sale, or died-in-lieu, and a 130-240 point hit for a bankruptcy. Your credit score can not only … (8 comments)
credit scores: Divorce And Your Credit
- 03/13/11 01:20 PM
Not the most fun topic, but chances are you know someone who is facing the challenges of divorce. Going through this process can be emotionally and financially difficult especially when real estate is involved. Failing to address important credit issues, however, will only make things worse. Remember, a divorce decree does not absolve credit contracts or relieve responsibility for any and all debt incurred during the marriage. The following is a proactive plan to maintain healthy credit both during and after a divorce.Know Your Credit: Obtain copies of credit reports from all three bureaus right away (Experian®, Equifax, and TransUnion®). Organize … (7 comments)
credit scores: What Affects Your Credit Score?
- 08/05/10 06:49 AM
As we all know, a consumer's credit score is more important now than ever. A credit report is reviewed for home loan applications, car loans, rental applications, even job applications! According to FICO, there are five categories of factors that affect your score: Your payment history - approximately 35% of a FICO score. Have you paid your credit accounts on time? Late payments, bankruptcies, and other negative items can hurt your credit score. A solid record of on-time payments helps your score. How much you owe - approximately 30% of a FICO score. FICO scores look at the amounts you owe on … (0 comments)
credit scores: Affects Of Mortgage Lates On Your Credit Score
- 04/23/10 12:27 PM
As a mortgage professional, I am frequently asked about the effects of mortgage lates and foreclosure on credit scores. CNN.com has a pretty good article regarding this. Per Fair Isaac, your credit score will take an average hit of 40-110 points for a 30-day mortgage late payment, 70-135 point hit for a 90-day mortgage late, 85-160 point hit for a foreclosure, short sale, or died-in-lieu, and a 130-240 point hit for a bankruptcy. Pretty scary stuff, especially if you have other derogatory accounts, but good to know. … (2 comments)
Managing your credit scores and keeping them high enough to qualify for a home loan can be easy if you have always had good credit, and challenging if you have had some blemishes. 
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