Articles Tagged With: Credit Requirements

September 30, 2021

Before You Apply For An FHA Mortgage

One of the biggest worries about buying a home? Having good enough credit to qualify. Do you know what it takes to raise your credit scores? Do you know what it takes to do so without paying a third party to do things on your behalf? Improving your credit scores ahead of an FHA mortgage loan application requires time, which is why financial advisors say it’s best to start early when planning and saving for your loan. Raising your credit scores means changing some basic habits associated with your payments, and getting into new habits can be an adjustment. But that is not the reason why it takes time to repair your credit. There are three basic issues you should be concerned with if you want to raise your score. | more...

August 23, 2021

FHA Home Loans: Why You Need To Review Your Credit Report Now

By Bruce Reichstein

Why is it so important to review your credit report long before you apply for a mortgage? One important reason–the one you read in almost every article with advice on this topic–is to start reviewing your credit early in case you have to dispute an item on your report. But what happens in the event you find errors, outdated information, or evidence of identity theft? In the 21st century the likelihood of having any–or even all–of these in your credit report is elevated due to hackers, accidental breaches of personal data, or even mistaken identity. So what should a potential borrower do if they discover trouble with their credit reports? The first thing to do is to remember you’ll need to check all three credit reporting agencies to determine if | more...

August 17, 2021

Before You Apply For Your Mortgage Loan

By Joe Wallace

If you are concerned about your ability to qualify for a mortgage, before you get pre-qualified or pre-approved, it’s a good idea to add a few steps to your home loan prep checklist. These steps should be in addition to the usual things you need to do before you apply for the loan, seal pre-approval, approach a seller, or even start working with a real estate agent. One of those things is very important–you need to not only know the contents of your credit report (a Home Loans 101 type piece of advice) but also monitor your credit through the entire planning and purchase process of your home loan. Knowing your credit score is vital for a mortgage borrower and home buyer, but what happens if your credit report begins | more...

August 11, 2021

Questions To Ask About Your Credit Report

By Joe Wallace

Do you dread the idea of looking at your credit report? Some people delay looking at theirs because they are afraid of what they might see, or afraid they won’t be able to understand what they are reading in their own report. Fortunately, there are some questions you should ask about your credit report that can give you a good start in the right direction–these questions will help you better understand what’s in your report and what a lender looks for when they review yours. When you get your copy of your credit report from Experian, TransUnion, or Equifax, be sure to review the report once “cold”, and then review it again with the following questions: Credit Report Accuracy: Open Accounts? Are the accounts listed in your credit report open? | more...

July 16, 2021

Why Your Credit Report Matters

By Joe Wallace

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...

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 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 similar 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 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...

May 12, 2021

Down Payment Sources: The Rules

By Joe Wallace

Are you struggling to save enough money for a down payment for a home loan? It’s tempting to turn to quicker sources of funds for that minimum required investment, but FHA loan rules say some potential sources for down payment money cannot be used. Those prohibited sources include considering cash advances from a credit card, payday loans, and certain other sources for a larger sum of money that can be used for a down payment including down payment “gifts” that actually have an expectation of repayment. The guidelines that cover these downpayment issues are found in HUD 4000.1, also known as the FHA Lender’s Handbook. The rules? For any type of FHA loan that requires a down payment (a new purchase loan, an FHA One-Time Close construction mortgage, condo loan, | more...