Articles in Category: Credit Issues

July 16, 2021

Why Your Credit Report Matters

Are you new to the mortgage loan process? It’s easy to make certain assumptions, especially where credit approval is concerned. What do you need to know about your credit report? Don’t forget that how you use your credit, how much credit you use, and whether you pay on time are all factors that go into your FICO score calculations. There are several factors that may help you make better choices about how to plan and apply for your mortgage. Credit Report Factors To Consider Your FICO scores, credit card use, plus information about the amount of credit you use per card (up to the credit limit and by how much) are all things your lender will need to see when looking at your report. FICO scores are an important part | more...

July 15, 2021

FHA Loan Interest Rates And FICO Scores

By Joe Wallace

Buying a home means paying attention to your financials–credit scores, debt repayment habits, and credit utilization rates. Paying attention to them as early as possible is an important choice when you are planning your home loan. Don’t put off working on your credit–time is not on your side if you are planning to apply for a home loan in the next 12 months if you haven’t looked at your credit scores, reports, etc. If you want to buy a home with an FHA mortgage, you generally have more forgiving credit qualification guidelines from the FHA, and that’s a great reason to use an FHA mortgage. FICO score issues can be a major worry for some borrowers, but by working on your own credit far ahead of your home loan you | more...

July 9, 2021

Pro Tips For FHA Home Loans

By Joe Wallace

There is still time to take advantage of the higher mortgage loan limits for FHA home loans in 2021, and if you don’t know what it takes to be approved for an FHA single family loan this year, there are some pro tips you can use to get much closer to home loan approval. Pro Tip: Are you worried about your FICO scores? Remember that FHA standards include a requirement of a 580 FICO score or better for the lowest down payment. But the FHA standards are not the only minimum credit score requirements at work–the lender’s own standards also play a part. That is why you should start getting your credit ready early–at least a year ahead of your application for a single-family home loan. That’s not something many | more...

June 17, 2021

FHA Loan Minimum Credit Scores: Tips That Can Help You

By Joe Wallace

Are you concerned that your FICO score isn’t high enough to meet the minimum credit scores for the lowest down payment possible on an FHA home loan? On paper, FHA loan minimums for credit scores begin at 580 or better to qualify for the lowest down payment. Your participating lender may require a higher score but in general FICO score requirements for FHA home loans may be more competitive than some conventional equivalents. There is some good credit score advice should you take ahead of your home loan–it starts with pulling your credit reports to see what’s lurking in there, then checking your credit often and monitoring it. Being told to check your credit report is obvious advice. You will find that in just about any credit repair article. But | more...

June 9, 2021

Have You Checked Your Credit Score Lately?

By Bruce Reichstein

When was the last time you checked your credit score? If you are thinking about applying for ANY line of credit (but especially home loans) you will want to be looking at your credit reports on a regular basis. There are good reasons to monitor your credit and keep track of updates to your report. What kind of reasons? Human error, for one. If your credit report has mistakes like an outdated home address, incorrect spellings of your name or addresses, or other problems those errors could make trouble for you later on. But errors aren’t the only issue to keep an eye on. Credit scores help determine your interest rate on a home loan, and they also help determine what size of down payment you may be required to | more...

May 25, 2021

FICO Score Basics First-Time Home Buyers Should Know

By Bruce Reichstein

What does a first-time home buyer need to understand about FICO scores? If you are interested in a home loan, you need to know what FICO scores are acceptable to the lender. You also need to know how FICO score ranges are viewed by lenders in terms of general creditworthiness. What makes a good credit score or credit score range, and what makes a “bad” credit score range? Investopedia says credit scores have a range between 300 and 850. What do lenders think makes a good credit score? The specific answer will depend on the lender, but as a rule of thumb consumers can count on FICO scores between 670 and 739 as being “good”. Scores above this range in the 740s to a maximum of 850 are “excellent”. What | more...

May 24, 2021

Credit Building For First-Time Home Buyers

By Joe Wallace

Are you interested in buying your first home but aren’t sure how to improve or build up your credit to give yourself a better shot at home loan approval? FHA mortgages have more lenient credit approval requirements than conventional mortgages but even those applying for FHA mortgages need to ensure their credit scores are in an acceptable range for the most affordable home loan possible. In some cases it is a good idea to consider applying for smaller credit first. This may be in the form of store credit cards or similr lines of credit. But what should a new borrower know about doing so? Building credit takes time and patience–it is unrealistic to expect results in a few weeks or even a few months. If you have never applied | more...

May 18, 2021

Home Loan Down Payment Assistance Programs

By Joe Wallace

If you need a home loan but are not sure about being able to make your down payment, you may have help waiting for you in the form of a local home loan down payment assistance program. These are offered by a variety of entities including state housing agencies and can help first-time borrowers and those who have not owned homes before in the last three years. They may also be offered to those who don’t meet either of the criteria listed here, depending on circumstances. What do you need to know about down payment help? The first thing to know is that the terms and conditions will vary from state to state and even from agency to agency. There are no standardized offerings for down payment assistance. Some borrowers | more...

May 13, 2021

Get Your Credit Ready For A Mortgage

By Joe Wallace

Do you want to buy or build a home? Before you apply for a mortgage loan there are some steps to take in the planning stages to get you closer to loan approval. Checklists can be important tools when making the preparations you need before you apply for a home loan; purchasing a home is one of the most important investments you can make; you’ll have an easier time in the process if you are organized. You will want to start preparing this checklist long before you are ready to fill out paperwork to apply for the mortgage or to get pre-approved. This is a process that should begin, at a minimum, 12 months ahead of your application. What should you put on a credit checklist when prepping for the | more...

March 30, 2021

What Can Kill An FHA Home Loan?

By Bruce Reichstein

Those who want a home loan have to prepare for the new loan application in several ways–financially, through saving up for the down payment and closing costs, and with credit prep. That can mean working on your record of on-time payments, lowering your overall debt amounts, and avoiding new credit in the meantime. When applying for any large line of credit, there are some things that can stop your loan dead in its tracks. If you want a home loan and are worried about being approved for a home loan, add these issues to your mental not-to-do checklist and make sure you know how to avoid them. Avoid New Debt Your lender pulls your credit when you apply for your home loan–most people know that. But not as many know | more...