Posts Tagged ‘Buying a home’

Who gets the CREDIT?

August 28, 2017
Credit and money

Who taught you all about credit?

As a former Mortgage Broker, it became clearer each day that many people have simply never been taught how to manage their credit or what it takes to increase credit scores.

During our years in the Mortgage Business my husband and I heard so many stories from potential clients on how their credit went down hill. Sometimes bad things happen to good people such as loss of job, illness, divorce or death and the credit downward spiral was unavoidable. Most of the time we heard, “No one ever taught me.”

 Good Credit bad Credit signWhere do you go from here?

The Road to Recovery.

We have a passion to help and educate our clients and followers on how to improve and maintain excellent credit. My husband and I worked together as a team within the mortgage industry for over ten years. We loved helping our clients with the process of buying a home. We took the extra steps to show clients that were denied due to credit issues ways they could increase their scores and the requirements needed to obtain a home loan as well as helping them throughout the loan process.

It is our goal to give tips on credit, educate and help strengthen your credit and spending habits. Our post will also help prepare your credit for the home loan process along with a few fun light-hearted quotes and extras along the way. Visit our Facebook page and give us a, “Like” on our page and share with a friend or two!

Our page isn’t just for the future home buyers but rather a place to learn how to manage and understand your credit so it will be there when you need it. Having a higher credit score will save you lots of money on interest rates but the goal is also to make wise money decisions. So, stick around, check us out and let us know if you have any questions. We are here to help!

 

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A Paid Collection is still a Collection.

August 10, 2016

Credit increase credit debt team jeffeson

Did you know….

Just because you pay off a collection it does not erase the derogatory marks on your credit report.

A collection is an account that has been severely past due and the creditor gave up on receiving payment and turned the debt over to a Collection Agency to try to collect the money owed usually adding additional fees to the balance.

Many people believe once a collection is paid that it will be removed from your credit report. Some collection agencies will even go as far as tell you that they will remove the collection from your credit but usually, (unfortunately) this is a ploy to get your payment.

Read more here.

By Donna Jefferson

Credit and Mortgage Loan Specialist

 

 

Interest Rates are going up, how can you improve your credit quickly so you don’t miss out on that dream home?

July 13, 2013

Team Jefferson Home Loans - The Colony - TX - 75056 - 866-403-1426 - Home Loans - Mortgage - Buying a home - VA home loan - FHA home loan - Refinance - Credit - interest rates  (1) 4th

Home loan rates are going back up! Are you going to miss that dream home by waiting too long?

Mortgage rates have been setting records for the past couple of years now have allowed millions of homeowners to refinance or purchase their home.  However interest rates are on the rise again and with higher rates that means the home you can afford, in the near future, may have to buy something smaller price tag. Lower interest rates help you afford more home as interest rates will impact the monthly mortgage payment and your debt to income ratio.

So if you’re on the fence regarding refinancing or purchasing a home keep in mind the sooner you make your move the more home you will be able to get for your money. If credit scores are holding you back here are some quick ways to boost your credit scores.

Pay down your credit card balance. People with higher credit scores tend to maintain their balance to limit ratios to 20% however even 50% can make a huge impact on your scores.

Don’t be late on any accounts that report to the credit bureaus. This will not only drop your scores but can hurt your chances of obtaining a loan if you have too many recent late payments on accounts. I do not suggest making a habit of it but it would be better to negotiate with a bill that doesn’t report to the credit bureau for a late payment arrangement and make sure items that are report to the credit bureau are paid on time each month which may help you avoid a late payment on the credit report. Not a good habit but rather a way to maintain your score while you get back on your feet again with less impact overall.

Team Jefferson Home Loans - The Colony - TX - 75056 - 866-403-1426 - Home Loans - Mortgage - Buying a home - VA home loan - FHA home loan - Refinance - CreditDon’t close your old accounts. It is a common myth that paying off an old credit card and closing it out will help your score but this is not true. It can actually drop your score slightly. It is best to pay down the balances within the 20% of limit and can show you can use the credit wisely it will actually improve your scores. It also looks better on the loan application to show you have been wise with your credit by having more credit extended to you than you are using and the constant revolving credit will continue to boost your scores upward.

If you are trying to buy a home in the very near future do not, “dispute” items on your credit report as Fannie Mae now requires disputed wording to be removed. This will require time on your part to have the three credit bureaus remove this wording and usually you will need to send a letter to the creditor and to all three bureaus which can cause more delays in the loan process. Also once the dispute wording is removed you may see a drop in your scores as well. It is better to leave old debt alone unless it is truly inaccurate.

Limit the inquiries on your credit report. Inquires stay on your credit for as long as two years but has the most impact on the credit score for the first six months following the credit inquiry.

If your credit is already over 620 and you have over 2 established (12 months) trade lines and have been considering refinancing or purchasing a home it may be worth the time to take a serious look at your situation now before rates jump even higher. You do have to prove a two-year job history as well. Rent is going up all around tt will save you money each month by cashing on the still really good rates, not to mention the amount of money you will save over the life of the loan and the wise investment in yourself. What is holding you back?

By Donna Jefferson

 


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