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…]
Shallow Credit: What It Is and Why It Can Affect Your Mortgage Approval
August 5, 2011 by 2 Comments
You can have a decent credit score and still run into problems qualifying for a mortgage. One of the most common — and most misunderstood — reasons is something called shallow credit. Here’s what it means and what to do about it.
What Is Shallow Credit? [Read more…]
How Returning an Overdue Library Book Declined a Mortgage Loan
July 10, 2007 by 5 Comments
Okay…it’s not just the overdue library book…we have a few other factors involved with this scenario. In February I began working with buyer who was contemplating buying his first home, a condo to be exact. We were able to offer a preapproval based on: [Read more…]
