The Online Credit Score » mortgage

Quick Fixes To Purchase A House

author — Sun, 07 Aug 2011 05:32:09 +0000

If you’re contemplating buying a home, you’re probably thinking about how you’re going to qualify for a home loan. We all know the things we need to do to clean up our credit scores – pay our bills on time, don’t borrow more than we can afford, etc. The only problem is that it takes time to improve your credit score with this plan. Home price and interests rates are both exceptionally low right now. It’s the perfect opportunity if you’re in a position to buy real estate. But what if there are a few blemishes on your credit report and you don’t have much time to fix them? What can you do to raise your credit score right away in order to take advantage of the current interest rate and home price situation?

Of course you should embark on your long-term credit improvement plan. Don’t buy anything that you cannot easily afford and make sure you don’t slip up and pay any bills late. But if you’re looking to buy a home in the next few months, there are some short term fixes that can help you get approved for the loan.

Get a copy of your credit report and address any errors. You can sign up for a credit watch service if you like, but you can also do it yourself. The three credit reporting agencies, Transunion, Equifax and Experian are required to give you a copy of your credit report. Just go to their websites and request a copy. Look it over and get any errors corrected. It’s important to do this with all three, because you never know which service a lender is going to use. Many of them now order all three reports.

Sometimes there will be problems on your credit report that are accurate because you really did default on a loan or make some late payments. If this is the case, a letter of explanation is in order. In your letter, explain what happened and what you did to fix it. Lenders are more likely to approve a loan if they believe that these problems won’t be repeated. If you were temporarily unemployed, had a serious illness or went through a divorce, let them know. Those are temporary problems. If you took steps to correct the problem as best you could, let them know that too.

Impose a temporary moratorium on borrowing. Don’t buy that car or charge things to your credit card. Home loans are more difficult to get than most other loans. After you’ve closed escrow on your new house you can go out and get that car, stereo system or whatever you want. Just stay within your means. Your monthly debt obligations are part of the calculation that limits the amount of the home loan. Typically the maximum monthly debt payments, including the costs of the mortgage and other home related expenses is about 45% of your gross income. If you get any new loans before you get a home loan, those monthly obligations will eat into the 45%, so the loan amount you can get will be lower.

Paying down debt is an excellent long term strategy. Paying down loans that are nearing the end of their term is a great short term strategy. Lenders typically don’t count loans that have less than 10 months left. Concentrate on doing what you can to decrease monthly payments on loans that have more than 10 months to go. Credit cards should be at the top of this list, especially if you are near your credit limit.

Most people want to buy as much home as they possibly can. These steps will maximize the monthly payment you can get approved for, so you’ll be able to buy a home that you can live in for a number of years. Start working on this as soon as you possibly can. By the time you apply for a home loan, your efforts will already be evident.

While you’re getting everything in order to qualify for a mortgage loan, you can go house shopping! Check out these new homes in Carlsbad, California.

You’re In It For The Long Run: Bond Costs

author — Wed, 13 Jul 2011 03:32:46 +0000

Buying property could closely resemble birth of a loved one. It’s very painful and confusing at first, but a joy and celebration the longer life is lived. Buying property and taking out a bond to finance that purchase is a long, roller coaster ride. Statistics show that people who buy property and sell it within five years lose money, and sometimes it’s a lot of money.

People who buy and sell property within five years lose money. It’s an alarming statistic. The main reason is costs associated with buying property derive from a home loan or bond. These loans or bonds are designed for the long-term and not short-term, so when they are sold back quickly, the losses are heavy.

The actual costs of taking out a bond in relation to the total costs involved in the act of buying a property are not that high.

Registration, initiation, and conveyance fees serve as bond charges you can expect to pay. They join value added tax as the principal bond fees.

These fees need to be covered, although they should represent no more than 3% of the total cost of the property when it was purchased. If the property appreciates in value as it should, this cost will be recovered with in the first year or so.

However many people do not consider the minor details and purchase property on instinct. If they sell back within five years they lose a lot of money because you spend the first third of the bond paying back interest and not principal. The result is a lot of money still due.

This means that if they sell their house after five years, they will have only paid of 30,000 rand out of total bond repayments of 600,000 rand, the balance of 570,000 representing interest. Not a great return on investment in anyone’s terms. The only way that a home owner should consider selling a property within the first five years of ownership is that they stand to make such a considerable profit on it that it justifies the short term loss.

The bank also must find ways to cover a large bond. Often they borrow from a central bank. If the small, more local bank hits a rough patch, it will request some relief from the central bank. The central bank may allow the bank to enter a “grace” period with the bond, which means they will pay principal and no interest for a pre-defined amount of time. This does not come without penalties though.

To sum up the costs associated with a bond can be relatively low as long as the borrower takes a long term view of property ownership and is able to meet their commitments throughout the duration of the bond.

Bonds, The Two Major Types, And Which One Suits You Better

author — Mon, 04 Jul 2011 11:28:03 +0000

Bond fall into two categories – bonds with a fixed interest rate and bonds with interest rates that fluctuate during the loans duration. Fixed interest rates are more popular because the client always understands where they stand with the interest.

Fixed rates are old-fashioned and popular among citizens including home owners, who want to have a bond with a consistent price. They would rather just pay up-front a fixed fee instead of deal with a fluctuating rate.

Most fixed rate bond are long term running between twenty to thirty years. Generally the most that people who are conservative enough to tie themselves down to a fixed term bond is to take out their bond over fifteen years. They would normally do so if they had a higher than average equity, as well as an income sufficient to meet the higher monthly payments. The general and significant factor in taking out a short term fixed interest loan is that the overall interest to be returned on the loan is lower.

The ideal world would make it possible for the bank to tailor the loan around the individual’s needs. Obviously this is not an ideal world, so banks must do what they must to protect their own needs. Banks offer bonds in five year additions, beginning with fifteen years and slowly moving up from there. Twenty five is the most common duration, although fifteen year bonds are finding a niche.

Bonds where the interest rates fluctuate can be appealing to certain individuals who like to keep their finger on the pulse as far as interest payments are concerned. There are now certain types of bond packages which begin with a fixed rate of interest over an initial period, usually no less than ten years. Banks are more inclined to be flexible after this period of the loan’s duration as they have in theory recovered a fair percentage of the principal and can afford to be more accommodating to their client’s requests.

The homeowner may wish to request an adjustment with the interest based on the current economy. The bank is more than happy to meet this request, but will charge fees for doing so. It’s worthwhile to make the request if you can afford the fees.

Another problem with this type of agreement is that should interest rates rise, then the bond holder will find that their mortgage payments will be adjusted to meet the new rate, and they are no better if not worse off.

Both types of bonds offer different advantages. Generally people are inclined to stick with a fixed mortgage rate and sacrifice the chance the interest rates will drop throughout the years.

Does Bad Credit Mean You Cant Refinance A Mortgage?

author — Sun, 26 Jun 2011 06:30:54 +0000

Details On Discovering Bad Credit Loans

If you would like to get a new estate, or possibly re-finance your recent credit agreements, and have a poor credit past, don’t give up hope, as there are now many personalized products obtainable in the economic industry that will help you. There are also many articles that can be useful as well.

Poor credit house loans are available from many lenders, on the web, as well as via high street lenders. Plenty of creditors will have their particular criteria with regards to giving house loans or mortgages to individuals having a poor credit past. As an illustration, some banks might be comfortable with a few missed payments over the last few years, and could also allow legal judgements designated against your report, whilst many other banks would not.

It is a good option before you apply for just about any home loan or financial product, to have a distinct summary of your credit score, evaluate your errors, the amount of payments maybe you have missed, the amount of accounts are you overdue on, do you have any court judgements registered, or anything else which a financial institution might take into account in assessing the application.

When you have all of this knowledge, check out every single banks ‘lending criteria’ to be sure your position match their specifications before you apply, this would save time and effort, reduces the chance of being turned away, and does not flood your credit track record with a lot of credit searches, which might have a negative impact on future applications.

When you have identified a appropriate loan company based on your credit report, be sure to complete the vital particulars. It really is unlikely you’ll be accepted, or made an arrangement immediately, on the grounds that the banks underwriters may need to check your credit profile, your position and affordability, to determine whether or not they feel they are able to lend to you with minimal risk.

If they can, they will make you an arrangement in writing, that can include the sum of money you want to borrow, the total they’re happy to provide you, the interest rates rate for the home loan, monthly premiums and any kind of down payments if necessary.

Mainly because there is a poor credit past, does not mean a lender can not assist you with bad credit mortgage refinance. Find the best loan company, who will offer bad credit home loans, or ‘sub prime’ mortgage products, and they are able to provide the essential suggestions and financial agreement for the situation.

Keep in mind, home financial loans tend to be secured loans, meaning they may be secured against your property, and should you neglect to keep your monthly premiums up to date and on time, your loan company has got the legal right to take necessary steps and recover your residence. Be certain that you have been truthful with your loan application, and you will have the funds for the monthly repayments before taking out any additional money arrangements.

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Your Homeloan During A Recession: Is All Lost?

author — Tue, 21 Jun 2011 12:24:49 +0000

The current economic downturn has affected a lot of families nationwide. Unfortunately the high rate of foreclosures has directly been linked to home owners delaying or ignoring monthly home loan payments. It’s not your only option!

Despite the doubt, families can protect their bond credit rating and the lender has more options to help you out than you might believe. Waiting and falling behind payments is the last thing you want to do.

Contacting the lender before you get behind shows the lender you are serious about keeping your home and paying your home loan, and the lender is more likely to work with homeowners who are serious about protecting their home, their finances and their good credit.

The dedication goes a long way with the lender, and the bank may suggest programs or ways they can support your home loan during the recession. Programs can include modifying the current loan, reducing the interest rate, or even deferring the monthly payment.

Sit down and take a close look at your monthly budget to see what expenses you can eliminate or cut. Take a hard look at the budget and trim the fat. This will help you manage your home loan payments much better. Also, look into earning more money by getting a second job.

Your home is always filled with junk and materials you no longer use. However, many people might want this item, which is where you can make additional income. Sell items around the house no longer used or needed.

If you have tried these strategies without success, contact a credit counseling service. These services can negotiate your home loan payments with your home loan provider on your behalf. Credit counselors are experienced and have contacts that can tremendously benefit you and help you manage your expenses during a recession. Make sure you select a qualified credit counselor.

Talk to your lender, cut your expenses, and look for ways to make some extra money. They’re never enjoyable, but they are all ways to protect your home during a time of a recession.

The idea of losing your home, especially in a recession, is frightening to everyone, but that shouldn’t stop you from taking action. The sooner you take steps to protect your biggest asset, your home, the better. If you wait until you’re even a month behind on your home loan payments, then you won’t have as much room to negotiate with your lender. You will also damage your credit score because your late payment will be reported to the credit bureaus. So, if you know you’re going to have trouble making the monthly payments on your home loan, contact your lender or a certified credit counselor today.

High FICO Score Gets Low California Home Mortgage Loan Rates

admin — Fri, 27 May 2011 02:10:55 +0000

High FICO Score Gets Low California Home Mortgage Loan Rates

(PRWEB) September 14, 2004

“We have programs specifically designed for California residents who have a high FICO score and therefore qualify for a low home mortgage loan rate that could potentially save hundreds of dollars a month,”

For more information call 866 398 4664 or please go to:

http://www.goldmedalmortgage.com

“As an example on a $ 150,000 30-year, fixed-rate mortgage a borrower with a high FICO could pay as low as $ 895 a month, where somebody with a lower score could pay $ 1238 on the same loan.”

“FICO credit scores can range from 300 to 800. Remember, the higher the FICO credit score the better the home mortgage loan rate!”

“A high FICO score is your reward for paying bills on time. This is one of the most important factors that determine your home mortgage loan rate. A borrowerÂs high FICO score is the best signal to the lender of how well youÂll make your mortgage payments”

The best known credit score is called the FICO score, developed by Fair Isaac and Company (FICO).

“The most important information that the credit agencies use to determine your credit score are:

Credit History – How long have you had credit? The longer youÂve had good credit the higher the FICO credit score. Payment History – Do you pay your bills on time? One 30 or 60 day late payment can damage your good FICO credit score. Credit Card Balances – How much do you owe and how many accounts do you have? A person who has many credit cards even if there are small or no balances on the accounts has a greater potential to incur debt. Close out the credit cards that you donÂt use! Credit Inquiries – How many times have you had your credit checked? The fewer inquiries on your credit report the better the FICO credit score. So when you sign up for a free gift at the mall and your credit gets checked you might have lowered your FICO score even if you have no intention of using the new card!”

“It is very important to know your FICO score even if you are not in the market for a home mortgage loan rate. You could have errors on your credit report which are lowering your FICO score.”

About http://www.GoldMedalMortgage.com
Www.goldmedalmortgage.com is powered by Infiniti Mortgage Capital, Inc with officies and affiliates nationwide. They have programs specifically designed for California residents who have a high FICO score and therefore qualify for a low home mortgage loan rate.

They also offer a full portfolio of home loan products including debt consolidation loans, and home refinancing. First time home buyer loans are available.

For more information call 866 398 4664 or please go to:

http://www.goldmedalmortgage.com

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Mortgage Lenders New Policies Restrict Potential Borrowers — CRE Credit Services

admin — Thu, 26 May 2011 05:13:52 +0000

Mortgage Lenders New Policies Restrict Potential Borrowers — CRE Credit Services

Plano, TX (PRWEB) September 14, 2010

There are hundreds of millions of Americans with errors and inaccuracies on their credit reports. Consumers are encouraged by credit bureaus and the government to dispute those items if they feel they are incorrect. Their options are to file an automated dispute, send a letter, or call on the phone after purchasing a credit report. The credit bureaus investigate the allegedly incorrect account with the lender that is reporting it and then get back to the consumer with the results. This process was established to be a way to protect consumers from unfair practices by banks and other lenders. It is outlined in The Fair Credit Reporting Act (FCRA).

Another part of this law states that is allows, and sometimes requires that, statements of continued dispute are to be placed on accounts within a consumer’s credit report. This idea behind this was that it was a way to further protect consumers and give them the right to add their own version of what happened with an account to their personal credit reports. Unfortunately, this is starting to cause major headaches for potential home buyers all over the United States. CRE Credit Services has a solution!

Due to the economic downturn, lending and banking organizations have been attempting to search for ways to lower their risk without cutting their profits. One way they are currently experimenting with is to punish consumers who have listed disputes on their credit reports. As of this writing, loans underwritten by Fannie Mae or Freddie Mac are being denied for having as few as one account listed as “under dispute” on a consumer’s credit report. Many times a customer may not even realize that the account is under dispute. There are some investigations that require a company to place a notice of continued disagreement even if the customer agrees that the problem has been resolved. Thousands of disappointed people have gone to purchase their dream home only to find out that an error they disputed on an account that may not be accurate is preventing them from qualifying for a mortgage even though they would otherwise qualify. Also, if the account, accurate or not, were to appear on their credit report without being “in dispute” they would actually qualify for that same loan they are being rejected for.

There is no has been no assistance for consumers that can explain how a consumer would go about removing such a comment. The turnover is so high within the credit reporting agencies that even if a consumer did somehow figure out a way to request its removal from their credit report, the inexperienced person working on it would probably not even know how to properly process it. With a need to stimulate the economy and home sales we see home buyer tax credits, but no way to help consumers who are hindered for following their legal rights? How could it be illegal for companies to make this lending criterion? The simple answer, is that it is probably not legal.

The Fair Credit Reporting Act (FCRA) is one of many laws that are collectively referred to as the Consumer Protection Laws. Another one of these laws is the Equal Credit Opportunity Act (ECOA). The ECOA states that you can’t discriminate against someone solely based on his or her gender, race, etc. Also, it states that you can’t discriminate against a consumer based solely on someone exercising their rights under these consumer protection laws. By virtually any reading or interpretation of this law, what lenders are doing when they deny a loan based on the notices of investigation is a violation of federal law. Although it means that the practice will probably be challenged and overturned in the future, it does not give much hope to consumers right now. There is, however, hope, in the form of a reputable, experienced company headed by a former member of Experian’s elite CASS department in CRE Credit Services.

Although the credit reporting agencies would prefer they did not exist, there is a truly knowledgeable and respected credit services organization that, through years of experience and research, has developed strategies and methods to help consumers. This information would be nearly impossible for a consumer to figure out on their own. In situations like this, contacting a company like CRE Credit Services, at http://www.CRECreditServices.com might be the only real chance a consumer has to correct the problem. CRE Credit Services has designed a proprietary process to help remove these disputes. Designed by a former member of Experian’s elite CASS department there is no other like program in existence. There is no other credit services organization that employs that high level of a former member of any of the credit bureaus. They have already helped many clients get into homes by removing these disputes and improving their credit. CRE Credit Services has expert national credit consultants ready to speak with potential borrowers or mortgage professionals and they offer a no cost, no obligation consultation.

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Attachments

How easy is it to Qualify for a Mortgage NOW?

admin — Tue, 17 May 2011 11:10:12 +0000

Question by None G: How easy is it to Qualify for a Mortgage NOW? I am considering relocating, and wonder about all that I am hearing. I bought my current home 3% down 30 yr FIXED @6.125 My Credit Score is 815. Do those deals still exist for us “Outstanding Credit Score” types? Best answer:

Answer by golferwhoworks
sure do but you now need 3.5% down and be able to meet the debt to income ratios and you can sell your home and move any time you wish

Know better? Leave your own answer in the comments!

Credit Report Atlas, First Credit Reporting Company to Merge Three Vital Supportive Solutions for the Mortgage Industry

admin — Fri, 13 May 2011 17:10:15 +0000

Credit Report Atlas, First Credit Reporting Company to Merge Three Vital Supportive Solutions for the Mortgage Industry

Malden, WA (PRWEB) September 13, 2006

Credit Report Atlas (CRA) is the first credit-reporting company that offers a one-stop shop of supportive services and solutions for the mortgage industry. CRA has combined three imperative services, credit reporting tailored to the clients needs, loan leads from 24 hours to 30 days old, and an automated service that generates the cold leads into warm ones, thus creating a complete package of services that all mortgage companies need and use on a daily basis to obtain, create & close home loans.

Chelsey Fanara, an Account Executive Manager for Credit Report Atlas declared “The mortgage industry has been waiting for us! Why go to three different places when you can obtain quality credit reporting products and services at the best competitive rate possible with us?”

For over a decade, the company has been providing millions of fast, accurate, and reliable credit reports to their clients nationwide. The online reports are instantaneous, easy to read and easy to customize. CRA is an independent consultant that provides credit-reporting services through SettlementOne, the credit provider offering the only interactive report in the industry. SettlementOne is a direct credit provider of merged credit reports to Fannie Mae’s Desktop Underwriter® and is one of five direct providers on the Freddie Mac’s Loan Prospector® system.

“Through this relationship, CRA offers its customers a full range of consistently accurate, top credit reporting products and services, all geared to meet lender needs and formatted to customer specifications. It takes a winning combination of deep technical expertise and results-oriented technology to earn the trust of some of the world’s biggest commercial and government organizations,” stated Carlo Desierto, founder of Credit Report Atlas.

Credit Report Atlas is a private credit reporting consultant in the United States for SettlementOne products and services in 48 States. CRA provides a wide range of consumer credit reporting, mortgage reporting, and business development solutions to more than 52,000 credit grantors nationwide. CRA’s state-of-the-art technology platforms and system capabilities enables them to deliver the information you need, when and how you need it.

Contact:

Chelsey Fanara, Account Executive Manager, Credit Report Atlas

Phone: 206.984.8656

Fax: 866.875.3070

http://www.creditreportatlas.com/cfanara

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Is it possible to get a mortgage with no credit?

admin — Fri, 06 May 2011 02:14:49 +0000

Question by JimL: Is it possible to get a mortgage with no credit? My g/f are looking into buying a home of our own. neither of us have credit. we pay for everything in cash. we have 0 debt. no car payment nothing. we between the both of us we have been renting for about 3 years. we have never been late on a payment. with all this talk about “credit scores” and that it can save you thousands of $ $ $ if you know it, i am not sure how easy it is going to be to actaully get that much money loaned to us. we also will have a 10-15k down payment right off the start. oh i should also say we are both 21 also. so does anyone know if i can even get a mortgage? Thanks guys may i also add that we have been paying for rent via check. not cash. good lord. one last thing. i dont want a credit card, or want to have a smaller loan for something like a car. if i want something i am going to pay for it in cash. but a house now that i need some help on. but cars and other things are paid for in cash. mine when i drive it off the lot. also i have ran both of our credit scores at my bank. they both came up blank. nothing. nodda, no history. is that bad? were both only 21 so we both dont have that long of a job history. but she has only had 2 differnt jobs in 6 years, and i have only had 2 differnt jobs in 6 years. neither of us have ever been unemployed. and we both work for big good paying companys. Best answer:

Answer by mtgguy
not at all. Credit shows you can support your mtg payments.

Add your own answer in the comments!