Loannetter

Online Mortgage Shopping Impacts FICO Scores If you've considered checking out an online mortgage site: think again. What they don't tell you is that their network may comprise multiple agents. Each may pull your credit report (separately) over a course of hours or days while they review your loan options. While all this is going on, your FICO score is taking a nosedive. Each mortgage inquiry can negatively impact your score 3 points. Each time. So if 10 brokers pull your credit in one 90 day period you could be 30 points worse off. And here's the scary part: each of those 10 brokers could actually submit your application to another 10 banks who also check your credit and that little exercise just cost you 30 points per broker...so the potential for damage is exponential. Because banks and lenders have strict FICO score requirements, a lower FICO Score can affect your qualifying for the loan you want. So much for convenience... What is a FICO Score? Invited by the Fai

First Time Homebuyers may qualify for Government Subsidized Mortgages through FHA (Federal Housing Authority), VA (Veterans Administration), Freddie Mac and Fannie Mae. And that's not all! Criteria If you are like most people considering buying your first home, you may have been renting or living at school or with relatives so prooving your 'mortgage readiness' is your first step. And if you haven't owned a home in 5 years, you could still qualify for a FTHB loan because these organizations are mandated to increase personal home ownership. Free First Time Homebuyer Classes You may see newspaper notices about these classes, often held at public libraries or the office of a large mortgage lender. They are free and usually take a day or 2 evenings to complete. Keep the certificate you receive as proof because some lenders may give you a discount on your interest rate. The information is very helpful...so do take the course to help prepare yourself for the homebuying

Lenders first want to know your creditworthiness. To prepare yourself, it's a good idea to check your credit report to find out where you stand--at least a few months before you intend to buy your first home. Credit History Your credit history is held by the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. Your record comprises a list of all your relationships with lending institutions and credit card companies as well as tax and court records. Any outstanding fines or late payments will be noted in detail with the most recent issues carrying the most weight in terms of your 'score'. For more detailed information, read Credit Reports Defined on this blogspot Free Credit Reports By law every U.S. citizen can now receive a Free Annual Credit Report. This report is designed for consumers, and gives you the same information your lender sees in an easily readable format: http://www.annualcreditreport.com If you find anything on your report th

Credit Scores and Negative Propertery Issues Indicate Risk Categories to Investors. If you apply for a home loan with a FICO credit score of 720 or over, you will most often be approved for the current lowest interest rate if you are submitting full documentation (proof of employment, assets, etc.). An applicant with 680 or better, depending on the specific lender's guidelines must have pretty solid income verification and be a wage earner, not a self employed person. The litmus test for self employed persons for best terms is currently 740+ FICO. For example, let's say you can get 6% as an average 30 year fixed rate for a person with 720+ middle FICO Score. If your score is 680-719, you may be offered an interest rate of 7%. If your score is below 680 expect 'hits' to your price and possibly 8% or higher for the rate. Below 600 and you will be charged even higher rates and may only qualify for much higher rates or be limited to programs. Most of our FHA lenders want

How TRUSTING Are You? How well do you know the people who might have temporary access to your filing cabinet, check book or wallet? Now think: there's the guy who installed new cable outlets...your cleaning lady... the neighbor who feeds your cat when your away. Like most of us, you are probably pretty trusting until the precise moment you are either robbed or betrayed. Believe me, I've been there. Once the damage is done it is very costly and time consuming to have it undone. The only way to protect yourself from identity theft is to keep your personal details behind a solid unrelenting wall of common sense. Don't carry your social security card in your wallet and DO have a locked filing cabinet or home safe where you store your check books, passport, un-used credit cards, bank statements, W-2's, pay stubs and anything with your social security number or account numbers that could be used to impersonate you. Sad but true--a very high percentage of people who use your