IMPROVE YOUR SCORE

A good way to increase…

admin — Fri, 05 Sep 2008 17:14:03 +0000

…your credit is to consistently pay your bills on time. Also make sure your review your credit report and dispute and inaccuracies.

Adjustable Rate Mortgage (ARM)…

admin — Fri, 05 Sep 2008 07:59:50 +0000

…interest rate will increase after the initial period. You should consult with a mortgage broker to analyze the cost savings of refinancing at this point.

Keep the total number…

admin — Fri, 05 Sep 2008 05:39:24 +0000

…of inquiries against your credit to a minimum and this will have a positive affect on your credit and will help to increase your credit. Do not go out and apply for every credit card offer so that you can receive the cool free gift they are offering, do not apply for various loans all year round, and keep the number of applications for any type of credit to a minimum.

With adjustable mortgage rates increasing…

admin — Fri, 05 Sep 2008 04:53:09 +0000

…many borrowers are looking to convert their ARM loans into a fixed rate mortgage.

Another way to increase…

admin — Thu, 04 Sep 2008 17:07:54 +0000

…your credit score is to make a small purchase with a credit card that currently has a zero balance. This serves to activate the tradeline with the credit bureaus. Having a small balance with a high credit limit is looked upon favorably by the credit bureaus as well.

ARM?s have limits, or caps…

admin — Thu, 04 Sep 2008 15:54:05 +0000

…on the number of percentage points it can go up each year. It also has caps on how much it can go up for the life of the loan. This happens according to the terms of the loan you choose. For example- your mortgage starts at a rate of 4%. If you have a yearly cap of 2 points, and a life long cap of 6 points, this is what can happen to the percentage rate of your loan. At the end of one year your mortgage company can increase your rate by two points, to 6%. At the end of the second year, your mortgage company can increase your rate by 2 points, to 8%. (A total of 4 percentage points higher than the original term of the loan.) At the end of the third year, your mortgage company can increase your rate by 2 points, to 10%. A total of 6 percentage points higher than the original terms of the loan.) At this point you have had an increase of 6 percentage points and can no longer have your interest rate raised for the life of your loan. Of course these changes are tied to the index that your ARM is based on.

If you need to increase credit…

admin — Thu, 04 Sep 2008 13:05:06 +0000

…there are a number of things you can do. The easies thing to do is to hire a credit repair company to help you remove negative items on your credit report. The only drawback to using a credit repair company to increase credit is the cost involved. Credit repair companies can charge anywhere from 200-2000 dollars to increase your credit. If you have some time and are willing to work on it yourself there are some things you can do that will increase your credit in a short period for little to no money!

When evaluating your adjustable…

admin — Thu, 04 Sep 2008 02:56:37 +0000

…rate mortgage during an adjustment period review the following loan documents: NOTE and RIDER.
Your NOTE will outline the terms of your mortgage. It will indicate your rate and the terms of your loan. If you have an adjustable rate mortgage your loan documents will have an adjustable rate mortgage RIDER. This rider will outline the index, the margin, and the terms of the adjustment.

If you are in need…

admin — Thu, 04 Sep 2008 02:41:06 +0000

…of a lender for your terrible credit contact a mortgage broker. Mortgage broker’s will have access to numerous lenders and may be able to find a loan for your situation.

When refinancing before the…

admin — Wed, 03 Sep 2008 21:13:16 +0000

…Rate Increases on your ARM / Adjustable Rate Mortgage, it may worthwhile for you to evaluate your options, for example obtaining a mortgage with flexible minimum and/or interest only payments, or consider taking cash out of the property to separate it from the equity or consolidate debt.

Don’t let Terrible credit deter…

admin — Wed, 03 Sep 2008 17:06:59 +0000

…you from applying for a mortgage. Many lenders have programs that are short-term; allowing ample time to help rebuild your credit by adding positive trade lines, so in the near future, better rate/payment loans will be available to you with those improved scores.

The initial rate for…

admin — Wed, 03 Sep 2008 05:54:02 +0000

…an ARM mortgage is fixed for an introductory period ranging from 1 month to 10 or more years. Most Adjustable Rate Mortgages have a fixed, or “teaser” period of 2 or 3 years (2/28 or 3/27 are the industry terms for these ARM loans).
After the ARMs introductory period expires, the rate on your ARM may increase. If you took out your ARM mortgage in the past 5 years, you can safely assume that your new adjustable rate will increase dramatically immediately at the end of the 2 or 3 year fixed period. On some ARM loans, the increase to the new adjustable rate may cause your payment to as much as double.

The main factors for lenders…

admin — Wed, 03 Sep 2008 04:38:33 +0000

…with terrible credit are your equity and ability to repay. There are programs for borrowers with terrible credit as long as you have at least 25% equity in your home. You will need to write a letter of explanation to explain your credit history and why you now feel you can make your payments.

Although there is no…

admin — Tue, 02 Sep 2008 19:37:48 +0000

…specific credit score requirement, an FHA Refi does require a clean 12 month mortgage credit history. Any consumer derogatory need to be properly explained in a letter of explanation.

A professional mortgage advisor…

admin — Tue, 02 Sep 2008 14:23:24 +0000

…can also help identify the steps involved in verifying and resolving credit issues, especially where inaccuracies are involved.

Only the best mortgage…

admin — Tue, 02 Sep 2008 09:09:37 +0000

…companies are approved by the government to offer FHA loans to the public. Working with an FHA approved mortgage company is a great way to ensure that your mortgage refinance experience goes smoothly and honestly, even if you aren’t refinancing an FHA loan.

Its important to learn to…

admin — Mon, 01 Sep 2008 22:41:49 +0000

…avoid the habits that caused poor credit to begin with. Ask your preferred Mortgage Professional which items on your credit history are most damaging to your FICO. It takes time to turn bad credit around, but the results will save you thousands on your next home loan.

You can qualify for an FHA…

admin — Mon, 01 Sep 2008 15:49:10 +0000

…Refi even if you are currently paying on a Chapter 13 Bankruptcy. You would simply need the Trustee’s permission, a clean 12 month mortgage and bk history, and an acceptable appraisal. Call your mortgage professional to see if you qualify.

If you have terrible…

admin — Mon, 01 Sep 2008 15:33:41 +0000

…credit and own a home, you should obtain a copy of your credit report and review it with a mortgage professional. Check your report for errors or inaccurate information. Many times you can raise your credit score or devise a plan to improve your credit by reviewing your complete credit history.

You can do an FHA Refi…

admin — Mon, 01 Sep 2008 09:00:31 +0000

…with cash-out to consolidate debt, make home improvements, or take out cash for whatever you like up to 95% of the value of your home. Unlike other loan programs, there is no risk based pricing adjustment for taking cash-out to 95% of the value of your home with an FHA Refi.

If you have terrible…

admin — Mon, 01 Sep 2008 06:08:43 +0000

…credit and are in need of a lender to finance your mortgage you do have options. Sub prime lenders have specifically marketed to borrowers with terrible credit and offer purchase and refinance mortgages to terrible credit borrowers. Although almost all sub prime lenders require at least a credit score of 500 to qualify for a loan.

FHA loans are great for…

admin — Mon, 01 Sep 2008 00:44:10 +0000

…First Time Home Buyers. While the current “credit crunch” has pushed many would be buyers out of homes, FHA does not have a minimum credit score requirement. Whether your score is a 525 or a 500 you qualify for 97% financing with a 6% sellers concession.

You can do an FHA refi…

admin — Sun, 31 Aug 2008 16:13:54 +0000

…on up to a 4 unit property with no pricing adjustments. The property must be owner-occupied and FHA Loan Limits apply, although the loan limits increase with each unit in a property. Contact a mortgage professional for FHA loan limits in your area.

Lenders usually look more…

admin — Sun, 31 Aug 2008 04:25:00 +0000

…favorably on borrowers with no credit than those with below average credit. Borrowers with no credit are usually offered rates compared to borrowers with good credit. However, they must prove they are responsible through what is called Alternative Credit Grading. Lenders will grade your credit based upon accounts usually not found on a traditional credit report.

Some sources of alternative…

admin — Sat, 30 Aug 2008 21:29:51 +0000

…credit can be a cell phone, cable bill, utilities, and insurance. Basically, anything that you have a monthly payment can be used as alternative credit. Once you have a 12 month history for these accounts your mortgage broker will created a supplemental credit report through the three credit repositories showing that these payments have been on time for 12 months.

The Federal Housing Authorities insured…

admin — Sat, 30 Aug 2008 14:07:10 +0000

…loan programs offer many benefits to consumers looking to refinance their homes. Although most people think of first time homebuyers when they hear about FHA loan programs, FHA loans can be a great loan programs for refinancing as well. The next few paragraphs will review many of the ways an FHA refinance can help you.

When using alternative credit…

admin — Sat, 30 Aug 2008 12:27:35 +0000

…to help establish payment history, you will need at least two or three accounts to show your ability and willingness to pay. You will also need statements and cancelled checks for this.

Even if you have no credit…

admin — Sat, 30 Aug 2008 00:39:19 +0000

…score because you have never had any credit, there are mortgage programs designed for you.

One way to qualify…

admin — Fri, 29 Aug 2008 20:51:24 +0000

…for a mortgage with little or no credit history is to provide a sizable down payment. A down payment of 5% to 10% of the purchase price will often qualify you for a mortgage. Be sure to ask you preferred mortgage professional if a larger down payment will help you qualify for a home loan.

Many times being a…

admin — Fri, 29 Aug 2008 14:20:47 +0000

…first time home buyer and having limited credit you are still able to qualify for a home loan. Some lenders will allow you to use alternative credit in order to qualify in these cases. Alternative credit would be using letters from utility companies, phone companies, cell phone providers, non credit reporting loans, renters (verification of rent form, VOR’s), etc… These can generally be used to show a positive credit history and as an alternative credit option for 1st time home-buyers with a limited credit history.