Realty Times - How to Keep Your Mortgage Approval Approved

Realty Times - How to Keep Your Mortgage Approval Approved

Credit Score Requirements Ease for Some

By Ruben Gonzalez Jr

Prudential California Realty (DBA)

Tight lending guidelines have weighed on the U.S. housing market during its ongoing recovery. Most lending institutions during the past two years raised their credit score requirements to as high as 650, making it nearly impossible for many people to obtain a loan.

Wells Fargo made it a little easier for homebuyers this past year, when the lender lowered its credit score requirements on FHA mortgages.

“Under its new policy, Wells Fargo will accept borrowers with credit scores of 500 to 579 if those borrowers can make a down payment of at least 10%,” said Robert Lentini, a mortgage expert who blogs for the website thetruthaboutmortgage.com. “For borrowers with credit scores of 580 to 599, borrowers must put down 5%. Borrowers with credit scores of 600 or higher can make a 3.5% down payment.”

Quicken Loans, Inc. adapted similar policies— dropping to a minimum 580 FICO score. “There are folks who have steady incomes and a solid payment history but were temporarily affected by the economy or a life event in some way. These challenges can lower their credit score significantly,” said Quicken Loans Inc.’s Chief Economist Bob Walters in a company statement. “We believe that a credit score, on its own, is not the sole arbiter of a person’s credit worthiness. This change will open up credit to a significant group of people and allow them to again have access to purchase or refinance a home.”

Such developments have been welcome news to FHA Commissioner David Stevens, who earlier this year urged lenders to lower their minimum credit score requirements to help the real estate industry as a whole. Stevens said that stringent requirements have constrained home sales by as much as 20% over the past year.

Ruben Gonzalez can be reached at (562) 507-0754 or Email.

 Prudential (dba) is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

Realty Times - All About FHA Loans

Realty Times - All About FHA Loans

Realty Times - What Influences Credit Scores

Realty Times - What Influences Credit Scores

Improve Your Credit Score

By Ruben Gonzalez Jr.

Prudential California Realty (DBA)

Those about to start house hunting should check their credit score before things get too serious. There is nothing quite as frightening in the mortgage process as learning that your credit report contains a late payment or other blemishes that can prevent you from buying a property.

The higher your credit score, the better your chances are of financing a home. A credit score of at least 620 will give consumers a fighting chance to secure a home loan; 720 should qualify in most cases.

However, a lower credit score doesn’t necessarily mean you can’t finance a home. Credit score repair begins with your credit report. You can request a free copy of your credit report annually from the Federal Trade Commission at AnnualCreditReport.com. Check the report for errors.

Don’t panic if your report contains blemishes. There are steps you can take to fix negative marks, regardless of whether the marks are in error or if you’ve missed a payment or two. The simplest thing to do if you’ve missed a payment is to call the creditor and ask them to erase the negative listing. You can also do this with a well-documented letter. There is no guarantee that a lender will do this, but if you’ve been a good customer through the years, this method has proven to be successful.

If you are one of the many who have defaulted on a student loan you can enter into a “rehab program,” which will get your account back on track after 12 months. This may not be the quick fix you need when buying a home but the sooner you do this the better.

For disputing a negative mark that was not your fault, you can try disputing the account with the credit bureaus as “not mine.”

One quick fix used by borrowers to boost their credit score is to have an older family member with a sound credit rating add you as an authorized user on a credit card. This can help increase your score and you wouldn’t even need the card in your possession.

With more loans requiring higher credit scores today, it’s never too early to start fixing credit challenges.

Contact me TODAY and let's find out together where you stand. Remember information is POWER!!!

Ruben Gonzalez can be reached at (507) 507-0754 or E-mail. Prudential (dba) is an independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.

Realty Times - Financial To Do List

Realty Times - Financial To Do List

Realty Times - Magic Mortgage Numbers 720, 20 Help Explain Why Credit Is Tight

Realty Times - Magic Mortgage Numbers 720, 20 Help Explain Why Credit Is Tight

Realty Times - First-Time Buyer Tips

Realty Times - First-Time Buyer Tips

Realty Times - New Requirements for Landlords Who Deny on the Basis of Credit Score

Realty Times - New Requirements for Landlords Who Deny on the Basis of Credit Score

Obama admin at it again, CAUTION first time home buyers, Mortgage rates hold steady!

Unable to make your mortgage payment due to job loss?

Help may be on the way!

The Obama administration is at it AGAIN. Talks with major lenders, economists and Uncle Sam officials have opened over the possibility of helping unemployed homeowners who no longer can afford their mortgages due to job loss. Assistance may range from skipping payments to grants or loans that will temporarily cover mortgage payments.

Stay tuned for more info....

Caution First Time Buyers!!!

Are you hoping to close before the November 30th expiration credit date?

Don't charge anything!!! Lenders are running credit checks prior to closing and any additional debt may jeopardize your loan. Even inquiries may alert the lender, so NO PURCHASES until after closing.

Mortgage rates holding steady!!!

According to Freddie Mac, for the week ending on September 24th, a 30 year fixed held at 5.04%, which is down 6.09% from a year ago.

Other rates:

15 year fixed dipped from 4.47% to 4.46%

5 year hybrid adjustables were flat at 4.51%

1 year ARMS fell from 4.58% to 4.52%

Questions? Comments?

Contact me @

RealEstatewithRuben@gmail.com

DON'T FORGET TO CHECK OUT THE OCTOBER ISSUE OF

THE REAL ESTATE WITH RUBEN NEWSLETTER!!!

SEE YOU AROUND THE NEIGHBORHOOD!

Ways to Improve a Credit Score

Michael Fawver
Manager / Sr. Loan Consultant
International City Mortgage
Phone: (562) 754-4744
Fax: (562) 683-0427
michael@michaelfawver.com

With identity theft on the rise, consumers are becoming increasingly aware of the importance of reviewing their credit reports. However, their thoughts about credit and its long-term impact upon their financial future typically end there until it's time to apply for a home loan. A credit score is used to evaluate how likely a borrower is to repay their loan. There are several actions a person can take to impact their score. Here are a few to keep in mind.

If someone has a credit card which has a high balance, while their remaining credit cards have low or zero balances, it's best to distribute the debt across the cards in order to change the ratio of debt to available credit.

Many consumers believe that they should close an existing credit card account if the card is inactive. It's better to keep the account open and use it periodically in order to take advantage of its contribution to their long-term credit history.

With the flood of credit card offers that come in the mail, it may be tempting to open new accounts. However, these "pre-approved" offers are not approved until the companies run a credit report which will temporarily impact the applicant's credit score. In addition, experts recommend that a person maintain between two to five credit card accounts, total, so it's best to avoid accumulating too many.

There are several factors that contribute to a credit score. But by observing the tips above, as well as making payments on time and keeping balances as low as possible, a consumer is sure to achieve superior results.

Great tips from my top notch mortgage guru!

I can't stress enough to all you first timers out there as well as you wise investors; THIS IS THE TIME TO BUY!!! Don't miss the boat, contact me and we will start a "plan of action" The sooner we start, the sooner you will get the keys to your new home or investment property.

See You Around The Neighborhood!