Tehachapi's Online Community News & Entertainment Guide
Tehachapi's Online Community News & Entertainment Guide
Sorted by date Results 101 - 105 of 105
When we pull your credit report, lenders are supposed to give consumers a credit score disclosure. This document shows what your credit scores are, and gives reason codes as to why. You’ll see references to credit score ranges of 309 to 844, higher being better. In real life, most consumers shopping for a home loan will score somewhere higher than 500. Since beginning my practice in 1990 I have only seen one credit score in the 400s, and a few as high as 824. Remember this snapshot will d...
Living mortgage-free seems to be part of the American Dream. What homeowner hasn’t envisioned owning their home outright? Paying off your house is attainable over time, by taking a shorter term on your loan, or even by making extra principal payments monthly. What we’re talking about here is what to do if extra money becomes available as a windfall – an unexpected raise, a bonus, a tax refund, an inheritance. Should you extinguish the mortgage? Tread with caution… there are drawbacks you may...
“I have a 700 FICO!” You’d think such words would be music to a mortgage advisor’s ears. Maybe, but maybe not. Credit scores are important, but a home loan credit pre-approval is concerned with so much more than just a number. Credit scores were put in place to help predict which consumers would experience a credit default in the coming twenty-four months, by examining their credit usage. Years of data were analyzed to come up with profiles of how consumers behaved right before their credit...
Let's take a quick look at the affordability of today's housing market. For each of these scenarios we'll assume a pristine credit report, more than two years on the same job, and cash to close belonging to the buyer for at least two months. For a buyer who can afford to spend about $1100 per month on housing, what does that mean about the purchase price? Programs, rates, down payments, and homeowners insurance have everything to do with monthly payments, so these scenarios are just a ballpark...
One of my former clients is moving to a different county and we’ve pre-approved her to use an FHA loan to buy her next home. Her Realtor tells us we’ve lost two properties because of the loan type. Does that mean FHA is a bad loan? Back in the day, there might have been reason to think so. At one time, an FHA loan had what were known as “non-allowable” closing costs. These were loan fees the borrower was not allowed to pay. This meant the seller had to pay the fees on behalf of the buyer, making...
