UPDATE: Mortgage programs for self-employed people have come a long way since I originally wrote this! Please be sure to check out Mortgage Programs for Self-Employed Borrowers Guide [Read more…]
Credit and Financial Strategy
Your mortgage approval doesn’t start with a rate — it starts with your credit profile and financial structure.
In this section, you’ll find educational articles on:
- Credit scores and reporting
- Debt-to-income ratios
- Mortgage insurance
- Bankruptcy recovery
- Financial planning considerations
- Long-term homeownership strategy
Understanding how lenders evaluate credit and income allows you to prepare strategically rather than reactively.
My goal is to help you improve your financial scenario — whether that means preparing to buy, restructuring debt, or planning your next move.
APR is not the best tool for shopping mortgage rates
October 3, 2012 by 1 Comment
APR was created by our government to help consumers select a mortgage rate. It was intended to be a tool that would allow someone to simply compare various mortgage scenarios and shop mortgage lenders for the “best rate” at the lowest cost. Unfortunately, APR is probably not providing an accurate view of what the true cost of the mortgage, whether it’s for a home purchase or refinance, is. [Read more…]
Charge Offs: All is Not Forgiven
August 1, 2012 by Leave a Comment
Part of what I do as a mortgage originator is review credit reports. I’m often surprised how many consumers think that a debt that has been charged off means that it has been removed from their credit history or “forgiven”. Basically, a charge off is when the creditor is writing the debt off their books for tax purposes, it is not terminating the debt owed by the borrower. Often times, the charge off may turn into a collection or be sold or assigned to a collection agency and therefore, mortgage lenders will view a charge off on a credit report as a collection. [Read more…]
Is My Credit Checked Before Closing
June 9, 2012 by Leave a Comment
A “soft” credit check is just prior to closing on your mortgage. This is to ensure that no new debt was obtained during the mortgage process and that the information on your final application that you sign at closing still represents your financial scenario. [Read more…]
