Improving Your Credit Score

March 27, 2008 by 2 Comments

credit

With every point of your credit score being more crucial than ever, I thought it would be a good time to share some tips on how to improve your credit scores beyond paying your bills on time.   If you are considering obtaining a mortgage within the next 12 months, you should meet with your Mortgage Professional to help advise you on this process.   Some steps in repairing your credit may actually temporarily lower your scores (such as paying off a collection).   What steps you should take depends on how soon you plan on buying a home or refinancing.

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Filed Under: Credit Scores and Reporting Tagged With: ,

It’s Official: Zero Down is Gone

March 21, 2008 by 6 Comments

Iceage_2Unless you’re eligible for VA financing within the conforming loan limits, 100% LTV financing (aka "zero down") is no longer available in the conforming mortgage markets.   

The following products are extinct:

  • Fannie Mae Flex 100
  • Freddie Mac 100
  • My Community Mortgage 100
  • Home Possible 100

If you are short on down payment with credit scores below 680, you should consider FHA financing, which is not as credit score sensitive as conventional programs.  Fannie Mae Flex 97 is still available as well as Home Possible 97.  Both conforming programs allow for 3% down.

Home buyers should also plan on having "reserves" after closing.  The amount of reserves may vary depending on the program from 2 – 6 months of proposed mortgage payments for owner occupied when it’s said and done.   Real estate agents, your first time home buyers may need help with closing costs from Sellers…if they’re willing…in order to meet the reserve account conditions. 

We’re rolling back the underwriting guidelines…not all the way back to the ice age…but close!

If you’re considering buying a home or refinancing, meet with your Mortgage Professional sooner than later so you have time review your credit and consider your options.

Filed Under: Credit Scores and Reporting, Current Affairs, FHA, First Time Home Buyer, Residential Purchase

The Mortgage Porter Quarterly

March 9, 2008 by Leave a Comment

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The first issue for 2008 of The Mortgage Porter Quarterly is being mailed starting this weekend. 

This snail-mail newsletter features:

  • Your Credit: Tips to Score Big
  • Last Minute Tax Changes for 2007
  • What’s New with Rhonda (a true read if you’re having troubles falling asleep)
  • My (and my hubby’s) favorite recipe for Huevos Rancheros (pictured above).  YES…I made that. 
  • My Mortgage Adoption Campaign
  • Credit Check Up (this issue, I recommend visiting www.annualcreditreport.com and pulling your free copy from Experian.  (You’re allowed 1 free copy from each bureau annually).
  • And much, much more.

Would you like to be on my snail-mail list and receive The Mortgage Porter Quarterly? 

Confession:  it’s really not a quarterly.  I only mail this out three times a year (currently).  I didn’t want to call my newsletter "The Mortgage Porter Thirdly".

Filed Under: Credit Scores and Reporting, Financial Planning, Just for Fun, Mortgage, Recipes

New Mortgage Porter Feature: Weekly Tips

February 6, 2008 by Leave a Comment

Are you considering buying a home or refinancing in the future?  You can now sign up to receive weekly email tips on home buying, preparing to refinance and credit scoring.  Simply click on the links I’ve provided on the left side of Mortgage Porter under the green Mortgage Weekly box at Favorite Links. 

It’s simple, free and I won’t hound you (unless you want me to)!   

Filed Under: Credit Scores and Reporting, Refinance, Residential Purchase, Tech/Tools of the Trade

YOU Magazine and MMG Weekly Now Available

January 12, 2008 by Leave a Comment

January’s issue of YOU Magazine is now available featuring 7 ways to make the New Year great including:

As if this wasn’t enough, this week’s Mortgage Market Guide Weekly is an absolute must read covering what’s going on in the mortgage industry and why if the Fed cuts rates, mortgage rates likely increase.    This issue of MMG Weekly also addresses how to freeze your credit in the event of ID theft and what’s coming up on the economic calendar.   

Mortgage Market Guide and YOU Magazine are just a few examples of the tools I invest in for my mortgage practice as my commitment to you.   It’s very important to me that my clients fully understand mortgages: the largest financial obligation on the most significant investment they may have in their lifetime.

Filed Under: Credit Scores and Reporting, Financial Planning, Just for Fun, Recipes

Can I get approved for a 400,000 home loan with a 600 credit score?

November 6, 2007 by 4 Comments

Yes…quite possibly!   The title of this post is a question that was entered as a search that found Mortgage Porter.  Someone could buy a $400,000 home with a 600 credit score if:

FHA Scenario Possibility

  • No late payments or derogatory credit in the past 12 months.  FHA insured loans do not use credit scores.
  • Base loan amount at FHA loan limit (assuming King, Snohomish or Pierce Counties):  $362,790.
  • Just shy of 10% down or a minimum of 3% down plus closing costs with a 6% seller contribution.

With conforming, if the other qualifying factors (income, assets, employment, down payment) are strong, the borrower may still qualify for a mortgage. 

At the very least, if your credit score is 600 and you’re considering buying a home, I suggest contacting a Mortgage Professional to have your personal scenario reviewed.  The higher your credit score, the better your rate may be for a mortgage and a qualified Mortgage Professional should be able to advise you on how to improve your credit rating.

Filed Under: Credit Scores and Reporting, Mortgage

This is sure to trigger your anger

September 5, 2007 by Leave a Comment

I just received this email:

Dear Mortgage Brokers,

This notice is to inform you that our 24 Hour Mortgage Trigger Database has recently been updated. This means that we are able to offer you data from either:

Equifax, Experian or Trans Union

Our leads come with:

FICO, Name, Address, Phone Number, Amount of Aggregated Revolving Debt, Mortgage Loan Amount, Lender Name, Loan to Value, Monthly Payment on Mortgage – Credit Cards – Automobile

We can target all 50 states by: County, Zipcode, Zipcode Radius, City & Major Metropolitan Area.

Response within 24 hours is required to guarantee this price.

Give me a call and I can have you setup to get leads the same day."

When  you visit their website (I’m not promoting here), they offer:

"… specific credit information on consumers based on actual credit records. This database covers 50 states and over 300 million people. From this database, selections can be made on credit score, amount of debt, late payments, mortgage type and monthly payments. This data is primarily used to identify individuals based on their current credit situation and purchase indicators."

If President Bush really wants to stop predatory lending , or as he said last week regarding Loan Originators “if you’ve been cheatin’ somebody, we’re gonna find you.”   Perhaps he could start by not allowing the major credit bureaus from reselling the (currently not so) private information of consumers.   

In the meantime, I highly encourage you to write to your elected officials to tell them to stop "trigger lists".   There is NOTHING good about this practice.

Filed Under: Credit Scores and Reporting, Identity Theft, Legislation, Predatory Lending

Your mortgage payment may be going up

July 31, 2007 by Leave a Comment

Last week we received a postcard from our friendly tax assessor informing us that our assessed value increased 14% over last year.   When I owned my first home, this news would probably excite me.   What it really means is that our mortgage payment is going to increase.

Your note rate determines the principle and interest portion of your mortgage.  However, property taxes and home owners insurance can and do change…count on it.   Your mortgage company received the same notice about your property taxes, too (this is one reason why you pay the "Tax Service Fee" when you obtain a mortgage).   

Our new assessment is effective for our 2008 real estate taxes.   Once this rolls into place in the beginning of the new year, our mortgage company will contact us and may offer the following options, after reviewing our escrow account:

  1. Increasing our mortgage payment to cover the difference in the account.
  2. Allow us to pay the difference in a lump sum.

We will most likely opt to have our payment increased.   

Please do be aware when you’re buying a home, that even if you have a fixed rate mortgage, the taxes and insurance are not "fixed".   If you currently own a home in the Pacific Northwest where our values are still strong, be prepared to have your mortgage payment increase in 2008.   

And for those of you who are squeaking by making your mortgage payment, this is even more reason to put away your credit cards and to have your credit reviewed by a Mortgage Professional in the event you need to restructure your current financial position (do this at least 6 months before you need to refinance so you have a chance to make any corrections or improvements to your credit).   Don’t wait.

Filed Under: Credit Scores and Reporting, Financial Planning, Mortgage, Seattle
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