Articles Tagged With: Credit History

Buy or Build a House On Your Own Lot in 2020

November 26, 2019

Buy or Build A Home With An FHA Mortgage In 2020

Are you thinking about becoming a homeowner in 2020? Some borrowers have an advantage when getting financially ready for their FHA loan application, while others may overlook important areas that need attention long before the loan paperwork is filled out. Preparing early is the key to the most seamless loan process possible. Are you ready to start exploring your options? Or are you just getting started with your credit reports, debt-to-income ratio, budgeting for the down payment and closing costs, etc.? Ask Yourself The Right Questions About Your FHA Home Loan How long have you been planning and preparing for the new loan? This is a very important question–without enough time to sort out potential problems on your credit report (identity theft, outdated information, incomplete or wrong details, etc) or | more...

October 29, 2019

Reasons You May Be Denied A Home Loan

By Joe Wallace

Most borrowers are worried they may be denied a home loan for one reason or another. How much is the average house hunter in danger of getting turned down for a mortgage? That depends on the kind of real estate you are looking for, your recent credit activity, and other factors. In general, you’ll find it harder to get a loan approved if one or more of the following things apply to you (see below). You Have A Recent Adverse Credit Action On Your Credit Report You risk being turned down for an FHA home loan or any other major line of credit if you were declined credit, employment or insurance recently. You Have High Credit Card Balances Credit card balances above the 50% line (halfway to your credit limit) | more...

Rehab Refinance Loans, reverse mortgages

October 11, 2019

Home Loan Advice: Top Reasons For Failed Loan Applications In 2018

By Joe Wallace

– Did you know that a Realtor.com survey reveals that as few as 40% of all potential home buyers apply for their mortgage loan with confidence? As many as 60% of the home buyers in 2018 feared they would not be able to qualify for a mortgage loan. Another survey, issued in September of 2019 by the company CoreLogic, states that high debt and low credit scores were the leading causes of mortgage denials last year. In 2018 alone there were more than two hundred and sixty million loan applications for single-family housing. Those applications were for one-to-four unit properties, as well as a portion of the applications going toward manufactured housing. The CoreLogic report suggests an overall loan application denial rate of just under 25%. And of that 25%, | more...

October 9, 2019

Home Loan Credit Advice From Credit Bureaus

By Bruce Reichstein

We discuss FHA home loan credit issues here frequently, but our advice is only one source. What do the three major credit reporting agencies have to say about credit issues related to mortgage loans? Equifax, Experian, and TransUnion all have official sites with advice for consumers who want a fair and honest mortgage loan. Let’s examine some of the advice for potential home loan applicants. Mortgage Loan Credit Advice From Equifax The credit reporting agency Equifax has some advice for borrowers, including a very useful tip about how to do damage control on your credit report if a situation beyond your control resulted in late or missed payments. According to the Equifax official site, in such cases, “Consider adding a consumer statement to your credit reports.” Did you know you | more...

September 18, 2019

Will FHA Loans Let Me Rent Out My Home?

By Bruce Reichstein

Will FHA loan rules allow you to rent out the property you purchase with an FHA mortgage? There are many who wish to buy a home to start working as a landlord, but if you wish to do this with an FHA mortgage, there are certain restrictions you will need to know before you commit. Many home loans have specific requirements; a borrower may be permitted to buy an investment property with certain kinds of home loans (not FHA) but the trade off may be higher interest rates, more restrictive terms and conditions (depending on the lender), and penalties for early payoff of the mortgage. Being a Landlord With An FHA Home Loan With an FHA home loan, you are permitted to be a landlord as long as you occupy | more...

August 21, 2019

FHA Home Loans And The Biggest Credit Mistake You Can Make

By Joe Wallace

In this space, we discuss FHA home loans and how they get approved. And we talk a lot about the biggest credit mistake you can make leading up to your home loan application-missed payments. And we’re not just talking about missed payments on one type of credit, we discuss the effects of missing a payment no matter what it is or how important to your financial bottom line. But it is human nature to forget good advice when you only get it from one source, which is why we’re turning our attention today to the advice of one of the three biggest credit reporting agencies in existence: Experian. Experian is 125 years old and has a lot to say about how to manage credit, improve credit ratings, and how credit | more...

August 19, 2019

How Job Changes Affect Your Mortgage Loan Application

By Joe Wallace

How do job changes affect your FHA mortgage loan application and chances for loan approval? Many first-time borrowers need to know this due to personal circumstances; it’s true that FHA home loan rules require the lender to verify two years of employment and it’s also true that an FHA borrower does not have to be with the same employer for two full years to be considered for an FHA mortgage. But what are the consequences of a job change in the FHA home loan process or immediately before a home loan application? If the job change is an upwardly mobile move that benefits the borrower and still meets FHA loan income requirements (for stability and the likelihood of the job to continue) there should be little to no negative effect | more...

August 9, 2019

Four Things to Remember About Home Loans and Credit Scores

By Bruce Reichstein

There are four things to remember about home loans and credit scores, especially for first-time home buyers looking to buy their first piece of real estate. FHA home loan rules are more forgiving when it comes to credit scores, but there are still minimum standards and requirements to meet. Keep these four things in mind when planning your home loan application for best results. Credit Utilization And Payment History Are Both Very Important How much of your credit limit do you use? This is a question the lender needs to answer because how you use credit is just as important as all the other factors that go into home loan approval. Carrying high credit card balances can hurt your chances for home loan approval-try to keep your balances below the | more...

the importance of credit for home loan approval

August 5, 2019

FHA Home Loans And Perfect Credit: Fact Versus Fiction

By Bruce Reichstein

We get plenty of reader questions about FHA home loans. Many of those questions have to do with worries that a borrower won’t qualify for the loan. One of the biggest topics in this area? “Can I get an FHA Home loan without perfect credit?” We fielded a question like that recently-the term “perfect credit” was used. The reader seemed to assume that perfect credit is required in order to buy a home. But who do you know as a homeowner with perfect credit? The truth is, FHA home loans do NOT require perfect credit for loan approval. But many potential home owners don’t understand how the credit check process works, or the requirements for loan approval. So it’s easy to understand how people can assume wrong things about the | more...

July 8, 2019

Myths About Home Loans and Credit

By Joe Wallace

There are lots of myths about home loans and the credit requirements you need to be approved for a mortgage. Here are some pervasive myths about credit as it relates to the home loan application you may be considering in the near future. Credit Myths: You Need Perfect Credit To Get A Mortgage FHA mortgage loan credit standards are more forgiving than some conventional options and borrowers do not need to have a perfect record to qualify. What you DO need is 12 months or more of on-time payments with no late or missed payments, a history of responsible credit use with balances that are not close to the credit limit, and a solid employment history (two years or more). Home Loan Credit Myths: The Lender Only Pulls Your Credit | more...