mary s asked:


Would any bank or credit union finance an applicant for a mortgage with a 567 credit score? I have a positive car note history (no late payments) and a credit card with no late payments. The negatives (4) that weigh my credit history are “charge offs” with a telephone company 5 years ago and a medical bill (collection account). All totalling $1,200.

Kyle

BH16 asked:


What type of qualifications do you need to be approved… ex.

credit score, income, what automatically disqualifies you such as a repo???

Jay

David D asked:


I’ve also been performing all of the routine maintenance for the vehicle.

I want to know if I can have the primary buyer removed and myself placed as the sole buyer, without having to refinance, since I have less than a 700 credit score. The car is titled to both myself and the primary buyer, and this person wants to purchase a new vehicle. They need to be released some how from the current loan.

Any help with this is appreciated.

Caffeinated Content

tcs26mar asked:


turned down for value, debt to income ratio, credit score

Caffeinated Content

Julian Lim asked:


 

Credit score is a major factor when trying to obtain a home mortgage. And you will know if there is indeed a problem is when you present your score and a prospective lender isn’t giving you any further financial attention. However nowadays loan requiring only good credit history is a thing of the past. Even people with low credit score will be able to find a home loan that they can use to purchase their own home. However, new home mortgage using bad credit will be costing you more because of higher interest rates. So, technically, it is more advantageous to apply for a home mortgage if you can present a good credit score.

 

Select the right lender

 

If you have a low credit score, it is likely that you will not be able to acquire a home mortgage with the lender of your choice.  And it can be quite difficult to change to a new lender as you have to make documentation of your second mortgage try just like you first time. This extra effort and time spent on documentation for the lender is one of the most taxing parts of applying for new home loan.

 

Duration of Loan



The time that you will spend in order to finish the repayment of the new mortgage loan is definitely affected by the credit report. This aspect is perhaps less significant than the other factors, however it is still important enough to be taken into financial consideration. The most obvious impact is when a low credit report leads to a higher interest rate. With such high rate, payments will certainly be exorbitant for the borrower especially of shorter payment term is chosen. And so, the borrower has to switch to a longer term in order to make payment more manageable, which on the other hand will make the borrower pay more in interests.

 

Loan rate

 

As earlier mentioned, credit score of the borrower has a great impact on new home mortgage loan. As a rule, the lower the credit score, the higher will be the loan’s interest rate. And if the credit rating is very low, the borrower unfortunately might not get a normal home mortgage.  It is without saying that better loan rates and terms are offered to borrower if he has good credit scores.

 

Type of loan

 

Another factor concerning new home mortgage loan that is affected by your credit score is the type of loan available for borrowers. The major types of loan available include:

 



Fixed rate mortgage

Adjustable rate mortgage

Balloon payment mortgages



 

Bear in mind that some unscrupulous lenders will entice or even coerce the borrower to get an adjustable rate mortgage so that when interest rates increase, such increase will be the responsibility of the borrower and not the lender. Borrowers must likewise avoid drawing a loan that might result in the negative equity on the home property and this will financially impact you greatly.

  



Kimberly

cocoa asked:


I found a home I really like but its $97000 and my income is $1600 per month. They can give me either option to finance myself or mortgage. I want a mortgage because I would like to have everything escrowed and then refinance after 2 years. My credit score is 561 and maybe I can get a better interest after 2 yrs. What would be my best option?

Susan

showmethemoney asked:


I just did a short sale on my home about 2 months ago. I want to purchase another home because of the deals in the market place. How long do I need to wait and are there any mortgage companies that are willing to work with individuals in my situation? My credit score dropped to 550. I have $15,000 to put down and i’m looking at property in the $100,000-$150,000 range. Any advice would be great.

Lois

Jim Donaldson asked:


If you are one of the lucky people now looking for a second home in the mountains or at the beach, it makes sense to use a nationwide home mortgage and put both your mortgages with the same company.

The approval process is faster as the nationwide mortgage company already has all your information and also the credit score lookup is only done by one company. A lot of people make the mistake of using a local in state company for their mortgage needs, this is no problem for their primary residents but for a second home the problems becomes that the mortgage company can normally not help you when your second home is located in another state.

Here it is important to use a mortgage company that will do nationwide mortgages and home loans. As a general rule the more states your mortgage company has sister companies in the more help they will be to you when you need that new mortgage in a different state. To find the perfect nationwide mortgage company just contact a few of them a get the a paper copy of your most resent credit report they should be able to give you a fair quote based on that. This way you don’t have 3 different mortgage companies pulling your credit because this will damage your credit score. When looking for a second mortgage in a different state you need to look at the mortgage company you are dealing with look at how many states they have offices and look to see that they can supply you with a mortgage in the state of your need house.

The second thing you want to look at is the mortgage rate the company can offer you. Let the mortgage companies compete against each other for a better rate for you and a lower payment each month. Also keep in mind that you now will have two mortgages with the same company maybe it makes sense to combine the two mortgages into one and that will give you lower payments. You can in most cases apply for the loan online or call the company 1-800 number an talk to a representative. This will give you the most answers and the representative can guide you though the process.

Just remember to get competing quotes and let the representative know that you are getting quotes from 3 different other mortgage companies this will sometimes make them sharpen the pencil a bit on your mortgage rate.

So for a second home mortgage in another state it is important to find a nationwide mortgage company that can take care of both your mortgages. Never get two mortgages by two different mortgage companies you will end up loosing money doing that. Also when getting a second mortgage remember to get quotes from at least 3 different nationwide mortgage companies to check the best rate and letting the companies compete against each other.

Getting in contact with a nationwide mortgage company is not as hard as you might think as their business is to attract you to them, you business is getting the best rate from them.



Laurie

aglaia asked:


My credit score is 680. I was told my debt to income ratio is high. Will my credit score increase and will it be better for me if I pay off these debts showing on my account by using my equity line?
1. credit card balance
2. a student loan I co-signed with my son (my son pays the monthly bill)

Patricia

Fast Pace asked:


having 668 on credit score and being first time home buying. Today, what docs do we need to present to refinace? Thanks, I appeciate your help.

Create a video blog…instantly.