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 can leave you in the Deep End when Qualifying for a Mortgage
August 5, 2011 by 2 Comments
When in comes to qualifying for a mortgage, lenders are generally looking for borrowers who have established a history of paying their obligations on time. Ideally this would consist of four accounts that have been open and used for the last one to two years. When someone does not have active accounts, or when their accounts are all new, their credit history appears “shallow” to some lenders. [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…]
