credit scores: The American Dream is Alive and Well - 12/21/12 06:16 AM
 
“The American Dream is Alive and Well”
 
I know most in the real estate and mortgage business work hard every day to put potential home buyers in the best possible position to be able to own a home. In problem situations, credit, job history, rent history, income or down payment can all be issues.
 
Amy called me last year after she read a blog of mine, which was about credit or I should say problem credit. Her credit scores were in the mid 500’s and she believed her situation was hopeless and she would need to keep … (5 comments)

credit scores: Home Prices Not Improving Affordability - 10/18/12 11:14 AM

“Home Prices Not Improving Affordability?”
 
 
 
Doing mortgages in 8 states, CT, MA, RI, VT, NH, ME, NY and FL, gives me firsthand information about this topic.
 
 
 
The article below, speaks to falling prices are not improving affordability. These studies are like the polls that are being done on the upcoming Presidential election. They all depend on who you are asking what questions.
 
 
 
Between home prices and interest rate, almost everyone that can buy a home, can do so. The bigger issues for potential home buyers have to do with credit … (5 comments)

credit scores: Credit Scores Shouldn’t be the Only Factor - 10/05/12 10:39 AM
 
“Credit Scores Shouldn’t be the Only Factor”
 
In most cases, that is the primary factor that gets you in the door. Sometimes misleading and unfair.
A previous client called saying that he needed to get prequalified for a new mortgage. He indicated that he was selling his Tolland home which I did the mortgage, 6 years earlier. He already had the buyer.
When I did a credit report, his mid credit score was 571, quite a bit below most lenders minimum requirement. He had perfect credit history on the mortgage and his auto loan, but credit cards, well not … (3 comments)

credit scores: Manchester, Ct Couple Need Help with Credit - 10/04/12 06:17 AM
 
“Manchester, CT Couple Need Help with Credit”
 
A family member used their social security numbers. These folks had taken in a family member for a few months. Long enough that some serious damage was done. 3 credit cards were opened, fortunately, not for large amounts, but since these folks were not aware of these obligations, they ignored the bills, when they came in. In hind sight they could have discovered to problem much earlier.
 
After a few months, they were getting calls from collection agencies, they finally figured out what had happened. They confronted the family member, who admitted … (4 comments)

credit scores: The Real Impact of Lower Interest Rates - 09/23/12 05:44 AM
“The Real Impact of Lower Interest Rates”
In the last month, I have refinanced 3 different borrowers with mortgages that have interest rates above 8%. That's right, above 8%. In each case they had applied for mortgage from banks and were denied. The crazy part of each case was that their mortgage history was perfect, but they had other issues on their credit reports.
Banks normally won’t do mortgages for folks that have credit scores under 640, which is not an issue for us as long as they don’t go below 580. In each of these situations they had sufficient equity and income, but couldn’t … (12 comments)

credit scores: Do You Need Credit Scores to Get an FHA Mortgage? - 09/18/12 05:44 AM
 
“Do You Need Credit Scores to Get an FHA Mortgage?”
 
I get asked this question all the time. Most lenders require a 640 credit score, others 620 and others 580.
 
We also do business with two lenders that do not require a credit score at all, as long as we can prove 3 alternative items that the individual is paying on a regular basis. Besides 3.5% down, these lenders will require 4 to 6 months is reserves.
 
Alternative credit can be, utility bills, cell phone bills, debit cards and car insurance.
 
You would be amazed, … (12 comments)

credit scores: I THINK MY HOME IS UNDERWATER - 08/28/12 06:36 AM
 
“I Think My Home is Underwater”
 
I did a mortgage for Barbara and Jimmy 5 years ago and they wanted to purchase another home, as their 2 bedroom ranch was just too small. They weren’t sure if they should sell or rent.
 
I had an appraiser do a comparable check for me, sure enough, the debt was slightly higher than the value. Their mortgage payment was $989 per month, but the home would rent for $1,000. I explained to them, the rental income could not be used in the qualifying process for another home. With this $989 … (5 comments)

credit scores: DOES ANYONE WANT MORTGAGES TO CLOSE QUICKER? - 08/23/12 05:46 AM
 
“Does Anyone Want Mortgages to Close Quicker?”
 
I took a mortgage application on August 1st. $250,000 purchase price, $50,000 down, 750 credit scores and great income.
 
We got the approval today, there were 32 conditions that need to be handled prior to getting a clear to close. We close lots of loans with this lender every month, so I decided to contact the underwriter on the file to find out why all these conditions were required?
 
The underwriter went right down the list with me. 19 of these conditions were items that need to be available, as … (7 comments)

credit scores: PAYING OFF COLLECTION & PUBLIC RECORD ACCOUNTS THAT ARE ON YOUR CREDIT - 07/24/12 09:03 AM
 
“Paying Off Collection and Public Record Accounts That are on Your Credit Report”
 
If purchasing a home or refinancing is in your future, working with a knowledgeable mortgage broker should be the first thing you do. Once the  credit report is obtained, allow them to guide you, but ask lots of questions, to make sure they know what they are talking about.
 
50% of the time, a collection account might be reported. Paying off the collection account will not automatically increase credit scores, as a matter of fact, it may do just the opposite. If a collection account … (7 comments)

credit scores: FEDERAL AGENCIES, PUSHING TO MAKE BORROWING EASIER - 07/19/12 05:38 AM
 
“Federal Agencies, Pushing to Make Borrowing Easier”
 
When I read this article, I had to laugh. Here these Federal agencies are strongly suggesting that lenders should loosen guidelines so more folks can qualify for a mortgage, which sure makes good sense. Yet, other Federal agencies are recommending that guidelines get tougher and keep saying that lenders should require higher down payments. You talk about a broken system.
 
20% of folks that contact me to get prequalified to purchase a home, can’t qualify. Not because they don’t make sufficient income, that don’t have good job history, but the credit … (2 comments)

credit scores: QUALIFYING SOMEONE FOR A MORTGAGE - 07/18/12 06:07 AM
“Qualifying Someone for a Mortgage”
I am always asked by prospective home buyers:
What price range home can I qualify for?
or
What mortgage payment can I qualify for?
Here is the first question that I ask: What is your comfort level for a mortgage payment? This is different than what do I qualify for.
I have seen too many folks get qualified for a mortgage and still get in trouble. Most of us know what our comfort level is for a mortgage payment, but when the payment that you qualify for is higher, there could be a false … (11 comments)

credit scores: 20 Million People UNDERBANKED - 06/19/12 11:11 AM
"20 Million People UNDERBANKED”
I have never heard the word “Underbanked” before, but in thinking about it, it sure makes sense. Based on the article below, Experian has put together a new scoring system. They estimate that 64 million people have either no credit or limited credit.
The bottom line, I am not seeing any difference in credit scoring, but can tell you, if you want to see all real estate markets change overnight, change the credit scoring guidelines for people who have very little credit or folks that have had credit issues in the their history.
I know what the … (4 comments)

credit scores: STUDY SAYS: DOWN PAYMENT IS THE BIGGEST BARRIER TO HOMEOWNERSHIP - 06/18/12 04:32 AM
“Study Says: Down Payment is the Biggest Barrier to Homeownership”
 
I don’t really buy the results. I am contacted everyday by individuals that want to get prequalified for a mortgage. The biggest reason for not being able to qualify someone, is CREDIT, not down payment. My sense is this question was not really addressed.
 
I must have over 100 clients that I am working with them on credit issues. Some issues take longer than others and in many cases, they were not aware of what the credit actually looked like.
 
This couple was referred to me the other … (4 comments)

credit scores: CREDIT STANDARDS MUST BE ADJUSTED TO ALLOW MORE PROSPECTIVE HOME BUYER - 06/07/12 06:06 AM
“Credit Standards Must be Adjusted to Allow More Prospective Home Buyer”
The last 4-5 years have been tough for many prospective home buyers that have been shut out of the market place, as credit standards have been much more restrictive.
Case in point: A client came to see me to get prequalified for a mortgage. She had been divorced for 3 years and as part of the divorce decree, her ex was responsible for a number of joint credit cards. There was a hold harmless agreement as part of the decree. The problem the credit cards where always paid late … (1 comments)

credit scores: WHEN HAS COMMON SENSE BEEN CONSIDERED, STRICTER MORTGAGE STANDARDS? - 05/04/12 11:38 AM
“When Has Common Sense Been Considered, Stricter Mortgage Standards?”
All the efforts of Dodd-Frank, when it comes to mortgages, are totally worthless, yes worthless!
The only reason subprime loans ever existed, was because there were buyers for this mortgage paper. Dodd-Frank put together a list of restrictions for Banks, Mortgage Bankers, Lenders, Mortgage Brokers and Loan Officers, that all are precluded from doing loans such as negative amortization, balloon payments and interest only loans. What difference does that make, when there isn’t anyone out there that would buy these mortgages? You talk about stupid legislation!
Dodd-Frank has said that it … (3 comments)

credit scores: CONSUMER LOAN DELINQUENCIES TUMBLE - 04/26/12 07:37 AM
“Consumer Loan Delinquencies Tumble”
I work with many clients that want to get preapproved for a mortgage. Very often, I have to tell folks that they do not qualify for one  reason or another. The qualifying process is more stringent today than it was a few years ago and that is a good thing.
I spend a lot of time coaching clients on improving their credit scores in order obtain a better interest rate. Very often there are mistakes or unreleased items, that I have to coach them on how to fix the problems. Most everything is fixable, somehow.
… (1 comments)

credit scores: CREDIT SCORES CONTROLLED BY WHO? - 03/27/12 10:55 AM
“Credit Scores Controlled by Who?”
 
For years I have heard clients say, that banks and lenders control their credit scores, and I have never understood how anyone can get to that assumption. It is almost like they believe, that the banks and lenders will do anything to turn loans down. That is just not true.
 
I have been harping for a long time that many of the guidelines are too restrictive and the time needed to close a loan is much too long, but banks and lenders can’t make any money unless they close these mortgages.
 
Half of … (6 comments)

credit scores: WHAT HAS CHANGED? BUYING OR RENTING - 03/07/12 10:02 AM
“What Has Changed?

Not a damn thing. All three scenarios in the article below, by Paul Owers, speak to decision that singles, married, young and older folks have made for many years.
All I know, is more and more individuals are saying, now is the right time for them to buy a home. More folks are calling to get prequalified and are calling to find out what their credit looks like.
More often than not, it is less expensive to own a home today, than the rent they pay.
 
Renting vs. Buying: It’s All about Finances
By: Paul … (3 comments)

credit scores: FHA MORTGAGES WILL BE MORE DIFFICULT TO GET - 01/24/12 09:04 AM
 

 
“FHA Mortgages Will be More Difficult to Get”
 
This is certainly a case of the horse has already left the barn. You talk about mixed signals. For the last month, there have been numerous articles about the heads of FHA wanting lenders to do more loans. These articles were saying that lenders should lower the credit scores, so more loans can be done. Yet, last week they informed lenders that the tougher rules and guidelines are being implemented.
 
The lenders are reacting already, as we are getting notices about these tough guidelines. Other lenders that we … (4 comments)

credit scores: THE CREDIT SCORE EFFECT FOR CONVENTIONAL LOAN REFINANCES AND PURCHASES - 01/19/12 09:03 AM
“The Credit Score Effect for Conventional Loan Refinances and Purchases”
 
Why is it, that the folks that can least afford additional cost on a mortgage, end up paying the higher freight? So far, borrowers that are doing non-conventional mortgages don’t have higher fees, but depending on the equity or down payment there may be monthly mortgage insurance. In spite of the monthly mortgage insurance and the lower interest rate, it may still be less expensive in the long run.
 
If these costs and fees on conventional loans increase, don’t be surprised if a privatized mortgage model shows up in … (0 comments)

 
Joe Rainmaker_large

Joe Petrowsky

Manchester, CT

More about me…

Joe Petrowsky NMLS# 6869 - Right Trac Financial Group, Inc

Address: 110 Main St., Manchester, CT, 06042

Office Phone: (860) 647-7701 x 116

Cell Phone: (860) 836-9294

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