June 26, 2019

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Articles Tagged With: Credit Check

How To Prepare Your Finances For A Home Loan

How To Prepare Your Finances For A Home Loan

Do you know how to prepare your finances for a home loan application? There are several areas you should pay attention to before applying for an FHA home loan to buy real estate, and the are all equally important for loan approval. How To Prepare Your Credit Cards For A Home Loan Application Reduce your credit card balances as much as possible before applying for your home loan. Ideally your initial goals should be to get the balances below 50% of your credit limit, but your goal should also definitely include 100% on-time payments for a full year before you fill out a home loan application. How To Prepare Your Student Loans For A Home Loan Application You will, as a first-time home buyer or repeat borrower, hear again and | more...

 
5 FHA Loan Rules You Should Know

5 FHA Loan Rules You Should Know

There are many rules and regulations that govern FHA home loans and knowing how the system works can save you time and money when you are ready to start the journey toward home ownership. Some borrowers may ask themselves if they are ready to buy a home; if you know some or all of the areas below you may be closer than you think. FHA Home Loans Require Occupancy You cannot buy a home with an FHA single-family home loan unless at least one person obligated on the loan will use the property as their primary residence. This occupancy requirement is non-negotiable and the borrower must take possession of the home within a reasonable time after closing, usually 60 days for existing construction home. Properties that require repairs (such as | more...

 
FHA Loan Credit Advice

FHA Loan Credit Advice

First-time home buyers and experienced home owners alike sometimes need help understanding what it takes to be approved for a major line of credit like an FHA home loan. What does it take to financially qualify for the mortgage and get on the road to home ownership? Buying real estate with an FHA mortgage means making a serious investment of time and money. And that usually begins with budgeting, saving, and working on your credit. Preparing your credit a year in advance or more is a very good way to prepare for the home loan application process. Why? Your lender needs to see at least 12 months of on-time payments on ALL financial responsibilities prior to your applying for the home loan. Anything less than this can hurt your chances | more...

 
Things That Keep You From Getting An FHA Mortgage

Things That Keep You From Getting An FHA Mortgage

What keeps some borrowers from getting an FHA home loan or refinance loan? In some cases the answers are easy, in others they are more complicated. Learn what some of the red flags are for lenders and prepare yourself to get the FHA home loan you need. Automatic Denial Of FHA Home Loans: When Does It Happen? FHA home loans are automatically denied for a variety of reasons. Borrowers with FICO scores lower than 500 are automatically denied, as are borrowers who have applied for a mortgage while they are in a bankruptcy that has not been discharged yet. U.S. citizenship is not required for an FHA home loan, but those who apply without legal standing of some kind (anyone in the country illegally) is automatically turned down for the | more...

 
FHA Refinance Rules

FHA Loans For First-Time Borrowers: Debt Ratios

One area that is just as important as FICO scores and credit reports to first-time borrowers? The amount of debt versus the amount of monthly income. This is known as a debt-to-income ratio or debt ratio for short; this is just as crucial for a borrower as their FICO scores. Many borrowers already know this; they have spoken to a lender or a housing counselor, or they have done their research already and fully understand that if you have too much outgoing debt and not enough monthly income, your home loan chances are in jeopardy. But what is not as well-known? The fact that there are actually TWO debt ratios the lender will look at. Yes, there are two calculations and if you don’t anticipate the second one you may | more...

 
FHA Home Loans: Things To Do, Things Not To Do

FHA Home Loans: Things To Do, Things Not To Do

FHA home loans, like all mortgages, represent a major investment for a borrower. There are things you should do in the FHA home loan process to get closer to loan approval, and there are things you should definitely NOT do as a new home buyer. Do you know what they are? FHA Loans: DO Work On Your Credit As Early As Possible Your FICO scores will determine the interest rate you are offered and the amount of the down payment required. It’s best to examine your credit report at least a year ahead of your loan application to make sure you have plenty of time to work on credit issues. FHA Home Loans: DO NOT Run Up More Debt Prior To Your Home Loan Opening new credit cards, adding more | more...

 
Do You Qualify For An FHA Mortgage As A First-Time Home Buyer?

Do You Qualify For An FHA Mortgage As A First-Time Home Buyer?

Do you qualify for an FHA home loan as a first-time home buyer? There are several things you can check to see whether your credit and employment situations will allow a lender to justify approving your mortgage loan application. Buying real estate means making a major investment; potential borrowers who are not financially ready for this investment should take their time and prepare for it and commit when they are fully prepared. What does it take to get an FHA home loan approved? Stable Employment If you are considering applying for an FHA home loan without at least two years of work history, it may be a wise idea to consider delaying your application until you do have at least 24 months of work on your record. Anything less than | more...

 
FHA Credit Score Eligibility: FICO Scores You Need To Qualify For A Loan

FHA Credit Score Eligibility: FICO Scores You Need To Qualify For A Loan

How low can your credit score go before you are not eligible for an FHA home loan? Borrowers get confused on this point but there is an easy way to remember what it takes to qualify for an FHA mortgage when it comes to the FICO score numbers. There are two requirements-that is what confuses many first-time home buyers. They hear that FHA home loan rules say one thing, and assume that is the final word on the matter. But it’s not. FHA loan rules state that borrowers with credit scores starting at 500 or better are technically eligible for an FHA home loan. Those with FICO scores between 500 and 579 are required by the FHA to make a 10% down payment. Those with FICO scores at 580 or | more...

 
Home Flipping and FHA Loan Rules

What You Need To Know About FHA Home Loan Credit Checks

What do first-time home buyers need to understand about the credit check process for getting an FHA mortgage? What you don’t know can hurt you in the journey toward buying that first piece of real estate. Before you begin working with a realtor, you should know several things about the credit check process. FHA Home Loan Credit Check Rules Your lender is required to pull your credit reports in order to approve or deny the mortgage. Your lender will review the following: Payment history Credit limits and how close the borrower is to those limits Overall patterns of credit use Date of the last late or missed payments where applicable FICO scores What Else The Lender Is Looking For Credit scores are not the only thing the lender is interest | more...

 
Fact And Fiction About FHA Home Loan Approval

FHA Home Loan Approval And Undisclosed Debt

Some first-time home buyers are tempted to leave information off of credit applications, hoping that the lender won’t find out or that the omitted information will get lost in the details of the loan. But this is not a good strategy; FHA home loan rules in HUD 4000.1 anticipate such issues and there are instructions to the lender accordingly. Leaving out crucial information including certain debts may jeopardize FHA home loan approval. FHA Loan Rules For Undisclosed Debt In a situation where the borrower fails to disclose debts and the lender discovers them by other means, HUD 4000.1 instructs the loan officer as follows for undisclosed debt that does not involve another mortgage: “When a debt or obligation (other than a Mortgage) not listed on the mortgage application and/or credit | more...