credit score: How Rapid Rescoring Can Make a Difference
- 12/18/23 09:36 PM
Imagine you're on the verge of securing a mortgage, and a slightly higher credit score could mean a lower interest rate. The good news? There's a quicker way to make that possibility a reality. Mortgage loans are often more time-sensitive than other loans. If you find yourself in a situation where a slightly improved credit score could open doors to better rates, the solution might lie in rapid rescoring.
When it comes to mortgage loans, time is of the essence. Your offer has been accepted, and you have a limited window to qualify for a new loan. But what if … (1 comments)
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credit score: When do You Lock Your Mortgage Rate?
- 02/20/23 08:38 PM
2/ Locking your interest rate protects you from increases due to market conditions. Locking early safeguards your budgeted payment. By locking the rate, if the market goes up, you get the lower rate; if it goes down after the lock, you may be able to pay a fee and lower the rate.
Knowing when to take the lock is determined by which direction you think the market is going. If you think rates are going up, lock in early. If you think rates are going down, ride the rate to within a few days of closing.
Some lenders may allow a borrower to lock a … (3 comments)
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credit score: If You're on the Sidelines, at Least Get Ready..
- 01/23/23 03:13 PM
If you're on the sidelines to buy a home, there are things you can do to be ready when you do get back in the game.
Improve your credit score to qualify for the best mortgage rate available which are reserved for those with the highest scores. Get a copy of your current credit reports from all three of the main credit bureaus: Equifax, TransUnion, and Experian. You can get them at AnnualCreditReport.com without paying for them.
While you won't see a credit score on these reports, you will see a history of your available credit accounts. According to the Federal Trad Commission, one in … (1 comments)
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credit score: Will Soft Inquiries Hurt Your Credit Score?
- 01/05/22 04:24 PM
Soft inquiries, sometimes known as a soft credit check or a soft credit pull, do not impact your credit scores because they are not attached to a specific application for credit. They can occur when a credit card issuer or mortgage lender checks a person's credit for preapproval purposes.
Examples of soft inquiries are when you check your own credit or one of your current creditors checks your credit. If you are concerned about the negative impact on your score, specify to the lender that you want a "soft pull" to see if you qualify for preapproval.
Soft inquiries may appear on … (2 comments)
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credit score: Larger Payment, Shorter Term, Bigger Savings
- 12/01/21 11:10 AM
Some people consider a house payment as basic as monthly utilities but with a plan and some discipline, you can be mortgage free.
Consider a person borrowed $300,000 at 3% for 30 years, the principal and interest payment would be $1,264.81 and at the end of 12 years, the unpaid balance on the mortgage would be $210,900.
If that same person had financed the home on a 15-year term at 2.5%, the payments would have been $2,000 but the unpaid balance at the end of 12 years would be $69,310. The homeowner will have a larger equity … (1 comments)
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credit score: One More Reason to Refinance
- 04/30/20 04:27 PM
Taking cash out of the equity of your home could be a legitimate way to fund a temporary cash crisis now or to have it on-hand if the need arises. Most homeowners can pull out the difference in 80% of the fair market value of their home and what they currently owe.
The most frequently cited reasons for refinancing are to lower the payment, eliminate the private mortgage insurance, combine mortgages, consolidate debt, convert an ARM to a fixed rate mortgage, remove a person from the loan or to take cash out for another reason.
The option of using your … (0 comments)
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credit score: Down Payment - Are You Sure?
- 07/03/17 06:27 PM
There is increasing difficulty for first-time home buyers to save for their down payment as indicated in the graph. Several factors that contribute to this trend include rising rents, rising home prices, student loan debt and flat wages.
Some would-be buyers feel they cannot buy a home today but a large part of those decisions may be based on inaccurate assumptions.
Nine out of ten non-owners believe they need ten percent or more for a down payment. The typical down payment for first-time buyers is six percent. VA has 100% loan programs as well as USDA for certain qualifying areas and buyers. FHA … (0 comments)
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credit score: Facts or Myths
- 01/04/17 10:22 AM
Facts or Myths “It’s impossible to get low down payment loans.” – FACT! FHA down payments are 3.5% and VA is 0%. In some areas, there may be some 0% down payment USDA loans available. FNMA and Freddie Mac have 3% down payment programs.
“It takes perfect credit to get a loan.” - FACT! There is a relationship of better rates to better credit but many issues on a credit report can be explained or corrected. The way to know for sure is to speak to a reliable lender.
“If I’ve had a bankruptcy or foreclosure, I can’t qualify.” - FACT! Credit history following a bankruptcy or … (0 comments)
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credit score: It Isn't Final Until It's Funded
- 12/04/16 02:23 PM
Mortgage approval isn’t final until it’s funded. Things can change prior to the loan being closed that can affect a pre-approval such as changes in the borrowers’ financial situation or possibly, factors beyond their control like interest rate changes.
Good advice to buyers is to do nothing that can affect your credit report until the loan closes. Opening new credit cards, taking on new debt for a car or furniture or changing jobs could affect the lender’s decision if they believe you may no longer be able to repay the loan.
The benefits of buyer’s pre-approval are definitive: it saves time, money and … (3 comments)
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credit score: It's not far, if you know the way
- 10/17/16 12:04 PM
“It’s not far, if you know the way.” What this expression implies is that you could have a long way to go if you don’t know where you’re going or how to get there. Just like reading a map, there are some definite steps that will improve your success in buying a home in today’s market.
Know your credit score – the best mortgage rates are available to borrowers with the highest scores. Unless you know what your credit score is at all three major credit bureaus, you don’t really know what rate you’ll have to pay. Clean up your credit – it … (3 comments)
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credit score: Pay Off Your Mortgage?
- 08/29/16 01:29 PM
Becoming debt free is as much a part of the American Dream as owning a home but there certainly can be conflicting circumstances that make the decision to pay off your mortgage early unclear.
The advantages of paying off debt early is increased cash flow, less interest paid and a higher credit score. The disadvantages are lower cash flow available as discretionary funds for meals, entertainment and other things. If the ultimate goal is financial security, is it worth the intermediate sacrifice?
Whether you pay off your mortgage early is a personal decision that may be right for one person and not for … (0 comments)
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credit score: The Cost of Co-Signing
- 10/14/15 12:47 PM
The Cost of Co-Signing
It seems fairly innocuous; a friend or family member wants you to co-sign on a loan because they don’t qualify. They assure that they’ll make the payments; they’re quite convincing and very appreciative. You don’t want to disappoint them and after all, it’s not like it’s going to cost you anything…is it?
Think of it this way. They couldn’t get a loan unless you co-sign for them. If they don't make the payments, the lender is going to look to you to repay the loan plus late and collection fees. The lender may be able to sue you, file … (7 comments)
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credit score: FHA or Conventional?
- 04/08/15 09:03 AM
FHA or Conventional? - 3/23/2015 Buyers with a minimum down payment are generally faced with the decision of whether to get a FHA or a conventional loan. With the new 3% down payment program on conventional loans, it may become more confusing which loan to pursue.
The two loan programs have mortgage fees that can differ greatly. FHA has a 1.75% up-front mortgage insurance charge in addition to the monthly mortgage insurance charge which was recently lowered by .5%.
FHA’s mortgage insurance is a fixed amount where conventional mortgage insurance providers’ fees are determined by individual companies and according to the credit score … (1 comments)
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credit score: Why Borrowers Pay Different Rates
- 10/27/13 03:08 AM
Why Borrowers Pay Different Rates Lenders, like any business, have to make a profit. The cost of acquiring the funds, the operating costs to service and the expected profit margin are easily identified. The variable in pricing is the type of mortgage and the credit worthiness of the borrower.
A loan with a 3.5% down payment is riskier than a loan with 20% down payment. If the lender has to take the property back to recover their expense, the margin is greater between what is owed and what the property is worth on an 80% mortgage.
Credit scoring is a … (1 comments)
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credit score: Tips on Closing Your Credit Cards
- 12/27/12 11:42 AM
Tips on Closing Your Credit Cards: The Real ConsequencesWhen someone is considering paying off debt, they are often under the misconception that closing a credit card will damage their credit score. While this may be true in some circumstances, there are many instances in which it will not cause a score to drop. When helping people decide whether to close a credit card account, there are two important factors to consider.First, consider whether you still owe a balance on the credit card. If you do, this is probably not the time to close the card. By electing to close a credit … (3 comments)
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credit score: Tips on Closing Your Credit Cards: The Real Consequences
- 01/09/12 06:43 AM
When someone is considering paying off debt, they are often under the misconception that closing a credit card will damage their credit score. While this may be true in some circumstances, there are many instances in which it will not cause a score to drop. When helping people decide whether to close a credit card account, there are two important factors to consider.First, consider whether you still owe a balance on the credit card. If you do, this is probably not the time to close the card. By electing to close a credit card before it is paid off, you effectively … (0 comments)
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credit score: The Best Way Home
- 01/02/12 03:41 PM
The Best Way Home "It's not far, if you know the way." Maybe it is an obvious statement but there are some definite steps that will improve your success in buying a home in today's market.
Know you credit score - the best mortgage rates are available to borrowers with the highest scores. Unless you know what your credit score is at all three major bureaus, you don't really know what rate you'll have to pay. Clean up your credit - it is estimated that about 90% of credit reports have errors. Some are not serious but … (0 comments)
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credit score: The Best Family Gift
- 12/04/11 08:07 AM
The Best Family GiftA home is a place of your own where you can raise your family, share with friends and feel safe and secure. Other benefits for homeowners include better physical health, higher lifetime income, higher student test scores, and lower teen delinquency.Reduced prices and low interest rates have placed housing affordability at its highest but rates have started inching up in the past few weeks which will directly result in higher payments. Credit, debt ratios and income are the limiting factors that could be keeping you from taking advantage of these opportunities. Isn't it time … (0 comments)
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Imagine you're on the verge of securing a mortgage, and a slightly higher credit score could mean a lower interest rate. The good news? There's a quicker way to make that possibility a reality. Mortgage loans are often more time-sensitive than other loans. If you find yourself in a situation where a slightly improved credit score could open doors to better rates, the solution might lie in rapid rescoring.
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