Fannie Mae is introducing a new format for credit reports called “trending credit data”. Typically a credit report shows more of a snapshot of what someone’s credit looks like today with late payments as a summary, more or less. Fannie Mae’s “trending” report will actually show a detailed 24 month history of each payment and the balance of that account for every month for the last 24 months. [Read more…]
What’s trending? How about your credit report.
March 3, 2016 by Leave a Comment
How many times will your credit be pulled during a mortgage transaction?
February 26, 2016 by 2 Comments
The main reason why I write at Mortgage Porter, is to try to answer questions about the mortgage process. A lot of my “content” comes from questions that my clients (people I’m helping to get preapproved to buy a home or refinance a home).
Recently, one of my clients asked me:
“How many times will my credit needs to be pulled during the whole process from preapproval to closing?” [Read more…]
The difference between your internet credit score and what a mortgage company will use
January 22, 2016 by Leave a Comment
I am taking advantage of the current low mortgage rates and refinancing! I fired up Credit Karma and was surprised to see that my score had dipped. My bank also provides my credit score, which was in line with what Credit Karma was providing – just one point under 720. UGH!!! Apparently, I had used one of my credit cards a little more than I should have over the holidays for some home improvements. One digit in your credit score can make a significant difference in your mortgage interest rate and the cost associated for the rate.
Establishing Credit Scores
September 9, 2015 by 1 Comment
If you’re a reader of Mortgage Porter, you probably know that I just returned from a long weekend to Nashville to visit my son and check out his new apartment. Getting started on your own is an important part of your life and it helps to have established credit. This is especially true if you plan to buy a home as most lender will require that you have three to four established accounts. The credit lines you establish (and other credit events) will determine what your credit scores are.
Are you buying a new home? WAIT to buy new furniture!
July 3, 2015 by 3 Comments
I have been working with a couple of clients who are buying homes and who’ve recently asked if it’s okay for them to buy furniture before closing on their new home. It must be all the “Fourth of July blow-out” sales going on that’s causing this question to come up recently.
I know my credit score
March 5, 2015 by Leave a Comment
Recently my husband and I considered buying an investment home in West Seattle. We began the preapproval process so that we could present an offer with a bona fide preapproval letter. We gathered our W2s, tax returns, bank statements and paystubs…and had our credit report pulled.
What you don’t know about your credit report may haunt you
October 30, 2012 by Leave a Comment
Does your credit report have skeletons hiding in the closet? Many are startled at what is lurking on their credit report when they’re getting ready to buy or refinance their home.
If you’re a long-time subscriber to Mortgage Porter, you’ve probably read some of my tips on how to improve your credit score. Here’s a quick overview of five frightening credit report surprises.
Your on-line credit score may not be what it appears. Your credit report and scores are available on line by the “big three” credit bureaus. However, don’t be fooled by your on-line credit score which probably is a different number than what a mortgage company (or other lender) will pull. Why? Basically, there are different scoring modules created for the end user (for example a mortgage company or if you’re buying a car).
Credit inquiries lingering behind. Your credit report will reveal inquiries that were made over the past 120 days. Each inquiry will need to be addressed with a written letter explaining each inquiry and whether or not new credit was obtained. If new credit has been obtained and needs to be added to the loan application with the debt being factored into the debt to income ratios.
Co-signed college student loans. If you co-sign for your childs student loan debts (or any debts) chances are you may get to qualify factoring that debt into your ratios. This can sometimes be resolved if you can document your child (or whoever you co-signed the debt for) has made payments on their own for the last 12 months.
Charge-offs. Consumers often assume that because a debt has been “charged off” that they’re off the hook for the remaining balance, which typically is not true. Lenders will often treat the balance of the charge off that is on the credit report as a “collection” which will probably need to be paid off or resolved prior to obtaining a new mortgage.
Disputed accounts. You disagree with what is being reported against you on your credit report and do what most responsible people would do: file a dispute. Only to find out when you’re getting a mortgage, that the lender will not close on your transaction unless the reported dispute is removed. Torture!
What may be buried in your credit report is just one more reason why you should start your loan approval process sooner than later.
If you’re considering buying or refinancing a home anywhere in Concrete, Fall City, Forks, Auburn (originally incorporated as the town of Slaughter) or anywhere in Washington state, I’m happy to help you!
Recent Comments