July 14, 2020

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Articles Tagged With: Credit Check

FHA Home Loan Credit Score Requirements: FICO Scores And More

FHA Home Loan Credit Score Requirements: FICO Scores And More

Many borrowers worry about their credit scores ahead of an application for an FHA home loan, and it’s hard for some to gauge whether they have sufficient credit to get a loan approved. FHA loans have more forgiving credit requirements and borrowers should not assume they do not qualify for a home loan without discussing their circumstances with a participating lender. When is a low credit score too low? FHA home loan rules specify that the lender must ensure a 500 FICO score (the very minimum) in order to qualify for an FHA mortgage, but your credit score numbers don’t tell the whole story. Lender Requirements For Home Loan Approval Vary You may read that FHA loan rule minimums for FICO scores do not always reflect the participating lender’s credit | more...

 
First Time Home Buyers: Improve Your Credit With Credit Monitoring

First Time Home Buyers: Improve Your Credit With Credit Monitoring

The COVID-19 pandemic has created economic uncertainty for many current and future homeowners. Many borrowers may have experienced financial setbacks during the coronavirus outbreak in America, and the years to come will involve a lot of credit repair and related efforts American consumers will need to get back on track financially. Protecting your credit is more important than ever–do you know what can hurt your FICO scores? Actively monitoring your credit is an important option–there are services that keep track of your credit report and learn about what affects your scores. It may be tempting to use free credit monitoring offers but financial advisors recommend comparing features on free offers versus subscription-based services. You may find that paying a small fee gets you much better options and features for managing | more...

 
Do You Know How To Dispute Your Credit Reports?

Why You Should Monitor Your Credit As A First-Time Home Buyer

Are you a first-time home buyer interested in buying or building a home? New borrowers should monitor their credit for signs of identity theft, erroneous information, and outdated credit data; doing so improves your chances at home loan approval by ruling out issues that may be related to credit report problems that are not your fault. Some future home owers already pay strict attention to their credit, but not everyone does. And they should–credit monitoring should play a crucial part of your preparation stages before applying for an FHA mortgage. The principles we are talking about here can protect you when applying for any big loan, including cash-out refinancing. Regular Monitoring Eliminates Surprises Later Having regular updates about your credit report reduces the chances of something slipping through–errors or evidence | more...

 
Construction Loans For First-Time Home Buyers

Planning Your One-Time Close Construction Loan

Some FHA loan applicants do not realize they have the ability to apply for a One-Time Close mortgage that lets the borrower build a home on their own lot instead of buying an existing construction home. The FHA One-Time Close (OTC) construction loan, like its’ VA construction loan counterpart, is a loan backed by the government that allows the borrower to apply for a single mortgage loan to cover both the costs of construction of a home from the ground up and the purchase of the home.  This is offered as an alternative to construction loans that require two loan applications (one for construction, one for the completed home) and two closing dates. OTC Loans Have The Same Down Payment Requirements As Other FHA Loans The One-Time Close loan avoids | more...

 
Do You Know How To Dispute Your Credit Reports?

Do You Know How To Dispute Your Credit Reports?

Do you know what it takes to dispute a problem on your credit reports? If you don’t know the contents of your credit report, or how to dispute your report, you may encounter trouble at loan application time. Are you a potential home loan applicant in planning stages of your home loan? It is very important to look at your credit reports and review the contents. If you have never seen your credit report before, you are not ready to fill out a home loan application. Review Your Credit Reports Now Disputing your report doesn’t happen overnight–you need time to dispute inaccurate or outdated information that may be on your credit report. And entries in your credit file that point to you being a victim of identity theft? That can | more...

 
Why Your Lender Offered You A Different Interest Rate Than What You Saw Online

Why Your Lender Offered You A Different Interest Rate Than What You Saw Online

House hunters searching for lenders online and comparing home loan interest rates may be seeing rates reported for FHA home loans below the three percent range, and compared to years past those rates are at incredible lows. In the first week of June 2020, FHA mortgage loan interest rates were reported at 2.68%. According to some data aggregators, that percentage represents a 52-week low at press time. The same sources report the high 52-week average for FHA mortgage loan rates at or near 4%. By the time you read this, those numbers will have changed up or down, but as a snapshot of the rates in a given moment in time these numbers are significant. But the low rates you see online are not offered to all loan applicants; do | more...

 
FHA loan

Credit Reports and Accuracy In Credit Reporting For Your Home Loan

 Do you know what your credit report says about you right now? If not, you aren’t truly prepared for your home loan application and may learn the hard way about issues on your credit report including identity theft, reporting errors, etc. If you have not looked at your credit reports, you should not fill out loan paperwork; there are many issues that can affect your mortgage loan application and they are directly related to the contents found in your credit file. Three Credit Reporting Agencies, Three Separate Credit Reports Don’t assume you can just pull a single credit report–consider what all three of the major credit reporting agencies have in their files in your name. These agencies do not share information, which makes it more important for you, the future | more...

 
What Affects Your Credit Most As A Home Loan Applicant?

What Affects Your Credit Most As A Home Loan Applicant?

A home loan is one of the most important investments you can make; buying a home means owning property, and being an owner means the potential to watch your investment grow in value over time. Unlike buying a new vehicle, which begins depreciating as soon as you drive it off the lot, buying a home means anticipating more value from your investment and not less. That is one reason why the process of applying for a home loan and getting approved can be so difficult when looking from the outside of the process. The lender has to make sure the borrower is a good credit risk and there are financial benchmarks for doing just that. Credit approval for any large loan depends a combination of factors. One factor is your | more...

 
Coronavirus And Home Loan Appraisals: What You Need To Know Now

What To Do Before You Need To Apply For A Mortgage

Planning for your home loan should always include a review of your credit reports and credit monitoring after you do that initial review. If you are committed to buying a home or building one from the ground up on your own lot using a One-Time Close construction loan, you should start reviewing your credit at least 12 months before you fill out any loan paperwork. Why? Because if you find errors or other problems on your credit reports, you will need more time than you think to dispute and correct those credit reports. It’s a bad idea to apply for any loan when you have an open dispute that has not been resolved; take the extra time to successfully resolve the problem before you apply for a new line of | more...

 
Home loan approval and debt

Home Loan Approval And The Amount of Your Debt

Do you need to consider your home loan options? FHA mortgages offer much for both first-time buyers and repeat borrowers. Your choices include new purchase loans, One-Time Close construction loans, reverse mortgages, cash-out FHA refinance loans, and Streamline refinance options when you’re ready to consider a refi loan. No matter what kind of loan you need, for best results you should set aside some time in the early stages of your loan planning; review the last 12 months of credit and loan repayment history and have a good look at your debt-to-income ratio. It is vitally important to do this before the lender does. The Amount Of Debt You Carry Matters The debt to income ratio or DTI for short is one of the most important factors in the lender’s | more...