Posts Tagged ‘Home’

Mortgage Pre-Qualification VS Mortgage Pre-Approval

August 28, 2017

Do you know the difference?

Ready to purchase your home?

Know the difference between Mortgage Pre-Qualification and Mortgage Pre-Approval? Home Loan Application form

A Mortgage Pre-Qualification is a very brief look without the research on your actual documentation. The first glance, you might say.

A Mortgage Pre-Approval is what you should actually have before you start looking. It is issued only after a lender reviews pay stubs, tax returns, credit reports, and other important financial information about a potential borrower. You should also see what other Documents may be required to secure the loan at this time as well.

Realtor with For Sale SignMost Realtors want you to have an actual Pre-Approval before they will show you homes.

Once you have the Pre-Approval you will know how much home you can comfortably afford. Your Pre-Approval will let Seller’s know you are serious because you already have a Mortgage Loan secured.

Having a Mortgage Pre-approval can save both you and your Realtor time and emotional stress by already knowing how much you can afford and by knowing you already have your Mortgage Pre-Approval gives you confidence to move quickly once your perfect home is found.

 

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Trended Credit – What does it mean for you?

August 22, 2017

Trended Credit started in June 2016.

What does this mean for Consumers? Road to Good Credit

The Trended Credit Report gives lenders more of a historical view of payment history for the past 30 months.

This will show a bigger, more complete picture of a consumer’s credit behavior or an extended period of time.

It will give lenders the ability to see how consumers manage their credit over a longer period of time. The added focus will be what your balance for a particular trade line averages compared to your monthly payment and how much you actually paid each month.

If you pay your balances off each month your credit will show you are more creditworthy.

If you charge large amounts but pay the balance off each month a lender will consider you more credit worthy than the person that maintains a high balance and only makes the minimum payment each month.

Good News for Consumers

Stuff happens and Lenders understand life throws curve balls. The Trended Credit Report may help a Lender visually see how you normally handle credit but something happened and you made adjustments and are now back on track. This is good especially for home loans where underwriters tend to allow for a letter of explanation.

Of course for some Lender’s they may not consider hearing an explanation to determine their desire to extend credit. The Good news is though your payment history on the Trended Credit Report can reflect you have overcome an issue and are now back on course.

What can you do to ensure your Credit Scores continue to increase? Do you know your score

Best practice to increase your credit score is to use your credit account but always pay over the minimum payment required even if only by a few dollars while focusing on paying it down and keep the balance less than 30% of the total credit limit. This will show you know how to use the credit extended without over extended yourself.

Close out accounts you no longer need.

In the past we suggested that you keep old accounts open however with the new Trended Credit it is advised to close the credit accounts that you no longer leave with the exception of keeping the oldest accounts open so you can show longer payment history. Your Credit score is approved

How can we help you achieve your goals?

Leave a comment and let me know if you have any questions! Be responsible with the credit extended. It will pay off in the end!

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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