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Posts Tagged ‘Credit Tips’

Purchasing a distressed property is a great way to purchase a larger home for money and pick up some instant potential equity.  However, there are many mistakes that buyers of REO properties make that can can leave you feeling like you’ve bitten off more than you bargained for. Read the rest of this entry »

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I was given a bit of advice from a friend who had a bankruptcy removed from his credit report on his own without paying anyone a dime.  The idea is very simple.  He found out that after a certain number of years, the county moves it’s records from a paper file to microfiche.  (In his case, it was 3 years.)  He waited until 3 years had passed and then Read the rest of this entry »

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Just a recap of what’s changing this past week.  If you have some deals going on, these changes could affect you. Read the rest of this entry »

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In anearlier blog about credit repair I had talked about a method of improving one’s credit score by “piggybacking” on someone else’s good credit.  The theory is simple, and here’s one example:  a student with virtually no credit wants to start building some.  He gets mom or dad to add him as an “authorized user” on one of their credit cards.  Technically he becomes able to use the account, but is not responsible for payment (they don’t even have to give him the card).  But the years of good credit history from mom & dad instantly pop up on his credit report and jacks his score up.  Then he can go out and start building credit MUCH easier than starting from scratch. Read the rest of this entry »

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The Top Ten Credit Dos and Don’ts During the Mortgage Loan Process

Keep in mind the actual lender will pull their own credit report at closing, and if your credit scores have dropped, you may no longer qualify for the rate that was underwritten and the final approval may come back with a higher rate. Unfortunately, all lenders qualify you by your credit score as to which criteria you fit and every loan has different criteria attached. The loan to value, the debt to income ratio and so on etc. This is what borrowers do not understand, and they think the loan officer is baiting and switching. They are not. If an issue comes up that the lender decides you do not qualify for a certain loan, the only thing a loan officer can do is shop for lenders and see if any are willing to give the rate and program they thought you qualified for. If you have good credit and know your score, the loan officer can give you an idea what he or she can offer based on what you say.  But do not expect them to stand by their quote if and when they pull your credit your scores have dropped.

Following are some helpful tips to avoid the credit mistakes that many borrowers make during the loan process:

Read the rest of this entry »

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Planning Your Mortgage and Seeking Pre-Approval

The Benefits of a Professional Consultant

Choosing a good lender is a key element in managing your mortgage.  A professional consultant won’t just provide a loan, they will help you select the one most beneficial to you and your long-term goals, and then, help you manage that debt over time. There are not many lenders out there who provide this type of personalized service. Read the rest of this entry »

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What Lenders Look for in Home Applications

Once your loan application is filled out and sent to the lender for review, the first thing they will look for is your ability to payback the loan you are requesting. A grand slam loan package is Read the rest of this entry »

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Here are the top reasons you should not wait to buy a home.  There are many beautiful, affordable homes on the market in the Carolinas.  Take advantage of time off during the holidays and look for homes to buy now.

1.    UNBEATABLE INVESTMENT.
Even in down markets, over the long term home prices still appreciate more than the stock market.

2.    LOW INTEREST RATES.
Rates remain at near-record lows; you can lock in a payment that fits your budget. Read the rest of this entry »

For the last five years, many homebuyers have only needed enough money for a home inspection, a earnest money deposit and a appraisal to buy a home. Unfortunately, last quarter’s mortgage meltdown caused the mortgage industry to act swiftly to make it a little more difficult for first time buyers to purchase their first home, but not impossible.  Read the rest of this entry »

In 2008, Fair Isaac Corp has announced that it will be changing the FICO credit scoring model. The new model, dubbed FICO 08, will make it easier on some and harder on others. Here are a few changes to expect:

• Bye Bye Authorized Users - In response to those that have charged up to $1,000 to add someone on their account to improve credit scores, authorized user accounts will no longer help boost credit scores. In fact, they could actually lower your score. No official word on this, but my expectation is that if MAJORITY of your credit is someone else’s credit, your score WILL reflect that. Also, if you are an authorized user on an account that is being sold for improving scores, expect to get hit hard! (again, no official word on that, but I expect this will be the case.)
• Occasional Slips Forgiven - So you have gone on forever making all your payments on time and then you have this one time late payment. Maybe it really got ”lost in the mail”, but the occasional random late may not hurt you quite as bad as it has recently. The word is that Fair Isaac is really trying to find out WHO is most likely to stop paying… the occasional late payment happens to most of us. But if most of your accounts are paid as agreed, the occasional late may not be such a big deal.
• Frequent Late Pays Hit Hardest - If you are late frequently, expect your score to be even worse that it was before. When this mew scoring model roles out, you will be penalized for constantly being late. The cure? Start making your payments EARLY and not waiting till the last minute.
• Variety is the Spice of Life (and now credit) - Those with a more diverse profile may see improvements. For example, someone with only 2 credit cards may not see the same gains as someone with a credit card, a loan, a car payment and a mortgage. I would still recommend credit cards for rebuilding as they do have a more instant impact on credit, however you will want to show more consitency across the board. One rule to remember… avoid Finance Companies if at all possible. They can still tend to hurt your score!

The bottom line is that lenders are more sensitive to risks right now and Fair Isaac is trying to help correct that. With other credit score models coming out, Fair Isaac wants to keep the FICO model on top of the market place. This new model will further seperate the good from the bad with little room in the middle.

If you do not understand how credit works, see a credit counselor immediately so that you can get yourself on top of things. Or, if you live in the Charlotte area, you can call me and I will try to help. If you are thinking about buying a home in Charlotte in the near future, start now by checking your credit profile and speak to a mortgage professional. You can never start that process too early!

Ed Nailor - dedicated to educating, inspiring and assisting in the American Dream! Apply for a Mortgage in Charlotte