Tuesday, February 21, 2012

Use Credit to Have Good Credit


In order to have good credit scores, you need to use credit.  The credit bureaus (TransUnion, Experian, and Equifax) do not give good credit scores to people who do not use credit cards.

But how do you get a credit card if you don't have good credit scores?  Won't the banks just turn you down?

The answer is NO, not if you apply for a secured credit card.  When you get a secured credit card, you give the bank $300 or $500 and they give you a credit card with a limit of either $300 or $500, depending on how much you gave them.  The money you deposited with them is your credit limit. 

If you use the credit card regularly and pay it on time, then you will rapidly see an improvement in your credit scores. 

Two words of warning:
  • Make sure you shop around for the lowest fees.  Different banks charge different fees, and some banks charge outrageously high fees for their secured credit cards.  Call at least 3 or 4 banks to compare fees before opening a secured credit card.
  • A secured credit card is NOT the same as a pre-paid debit card.  With a pre-paid debit card, you do not have a line of credit - you just have a card that has some money loaded on it.  It will not improve your credit scores.

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:



By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

Monday, February 13, 2012

Great News about Mortgage Insurance

Want some great news regarding mortgage insurance for conventional loans? How about this?


• The maximum allowable debt-to-income ratio (DTI) for mortgage insurance is being increased from 41% to 45%, regardless of the borrower's credit scores.

• Mortgage insurance monthly premiums are going down by a little more than 10% for borrowers with credit scores above 760.

These changes are for conventional (non-government) loans only. The mortgage insurance guidelines for FHA loans remain the same, meaning anyone who qualifies for an FHA loan automatically qualifies for FHA mortgage insurance. No additional underwriting is required.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Earnest Money and CHFA Loans

CHFA (Colorado Housing and Finance Authority) offers down payment and closing cost assistance for Colorado home buyers and they only require the buyer to contribute $1,000 of their own money to the transaction.

However, if a buyer pays more than $1,000 in earnest money, they are NOT allowed to get the amount that is in excess of $1,000 back at the closing. So make sure that when your buyer is getting a CHFA loan, they only pay $1,000 in earnest money.

Have a buyer who needs a CHFA loan? Send them to us and we'll take care of everything for you.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com


By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.

Re-establishing Credit

After a bankruptcy, a foreclosure, or a short sale, a potential home buyer must wait a certain period of time before they are eligible to get a mortgage.

In addition, the underwriting guidelines state that they must "re-establish" their credit. Many buyers are unaware of this additional requirement, and it prevents them from getting a loan.

Here's what re-establishing credit means: for the 12 months preceding the loan application date, the borrower must have a perfect payment record on all of their existing credit accounts. In other words, they can't have any late payments for one full year before applying for the mortgage.

If you have any prospects who have had a bankruptcy, foreclosure, or short sale, do them a favor and tell them to make sure they are paying all of their bills. Even one late payment will prevent them from getting a loan.

This "no late payments" rule ONLY applies to people who have had a bankruptcy, foreclosure, or short sale. Everyone else is allowed to have late payments on their credit report and they can still get a mortgage.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

By the way, don't forget to refinance your current mortgage. Rates are very, very low right now. Don't miss out! Call us today to get the details for your particular situation.