Credit Score

The Impact of your Credit Scores – Part 1

May 28, 2015

The first of a 10 part series on what you need to know about mortgages. Today, Mike Goblet talks about the impact your credit score has on qualifying for a mortgage.  Banks use your credit score as the first determination of risk you pose to them of defaulting.  It becomes the foundation for the whole […]

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Mortgage Lending Starts To Show Signs Of A Thaw

May 18, 2009

Getting approved for a home loan isn’t getting easier, but it doesn’t appear to be getting much more difficult, either. In its quarterly survey to member banks , the Federal Reserve asked senior bank loan officers whether “prime” residential mortgage guidelines had tightened in the last 3 months.

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A Few Reasons Why Now May Be The Least Expensive And Easiest Time To “Go FHA”

April 18, 2009

Shopping for low mortgage rates is a game of luck.

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Simple Real Estate Definitions : FICO

March 11, 2009

The basis of most mortgage lending is credit scoring. In general, the higher a person’s credit score, the lower his offered mortgage interest rate

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Fannie Mae Removes Its 4-Financed Property Limit

February 10, 2009

Friday, Fannie Mae rolled-back one of its least popular mortgage guidelines updates of the last 12 months.

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Mortgage Guidelines Don’t Tighten, But Don’t Loosen, Either

February 3, 2009

If the unfreezing of credit is paramount to an economic rebound, the first signs of a thaw may be here. Monday, the Federal Reserve released its quarterly survey of 84 member banks . In it, the Fed says that fewer than half of its responding banks tightened “prime” mortgage guidelines over the last 3 months

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It’s Semi-Official : New Conforming Mortgage Fees Go Into Effect Monday

January 9, 2009

Even though its effective date is April 1, 2009, mortgage applicants should start seeing Fannie Mae’s new fee structure from lenders beginning this Monday, January 12. The reason why Fannie Mae’s mandatory loan fees are hitting lender pricing so far in advance is because lenders can take up to 30 days to package and sell a loan to Fannie Mae post-closing. In effect, this moves the April 1 start date to March 1

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New Fannie Mae Loan Fees Target Condo Buyers, Among Others

January 8, 2009

When conforming mortgages started defaulting en masse in late-2007, mortgage guarantor Fannie Mae created a loss-offsetting, fee-generating scheme dubbed “loan-level pricing adjustments”. The concept was basic: For mortgage applicants with high-risk profiles, collect up-front payments to offset potential long-term losses

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Mortgage Markets In Review : December 22, 2008

December 22, 2008

Mortgage markets improved last week for the second week in row.

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STOP! Before You Open That Store Charge Card To Save 15 Percent…

December 19, 2008

During the holiday season, retailers bombard shoppers with at-the-register offers to “open a charge card and save 15%”.

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n Pictures : Mortgage Guidelines Get Tough For All Borrower Types — Quickly

August 13, 2008

It’s not your imagination — getting approved for a home loan is becoming increasingly more difficult. Taken from the Federal Reserve’s quarterly survey of 84 banks, it illustrates the changing dynamic of mortgage guidelines. Most notable is the steep curve for “prime” mortgages, a type of home loan given to applicants exhibiting: A well-documented credit […]

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Fannie Mae Increases Its Mandatory Loan Fees For All Borrowers

August 7, 2008

Fannie Mae announced a new risk-based pricing model and additional mortgage delivery fees this week, adding to the cost of buying or refinancing a home. Risk-based pricing was first introduced by Fannie Mae this past April. It added new, mandatory loan fees for high-risk borrowers while rewarding a small group of low-risk borrowers with fee […]

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You’re Not Immune — No Matter What Your Credit Profile Looks Like

May 7, 2008

Four times annually, the Federal Reserve surveys 84 different banks about general banking conditions. One of the survey questions asks about current mortgage lending standards and whether they are loosening or tightening. The chart at right is from the April 2008 survey and it illustrates what we already know: It’s getting tougher and tougher to […]

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Basic Credit Scoring Tips For A Better Mortgage Rate

April 17, 2008

Credit scoring is becoming more important to mortgage pricing so now would be a terrific time to brush up on your credit education. If you understand how the system works, after all, you can make it work to your advantage. One terrific place to start your research is at myFICO.com. Published by credit scoring powerhouse […]

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A Simple Explanation Of “Credit Crunch”

April 8, 2008

News sources like to use the term “credit crunch” in describing the U.S. economy, but they rarely define what a credit crunch is and what it means for Americans. A credit crunch is when the amount of available loans suddenly decreases over a very short period of time. Usually, it follows a period of lending which, […]

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FHA Home Loans Emerge As A Cheap Alternative For Low-Credit Score Homeowners

April 1, 2008

FHA stands for Federal Housing Administration, a by-product of the National Housing Act of 1934 and now a sub-group within the U.S. Department of Housing and Urban Development (HUD). The FHA is not a lender nor does it build homes. The FHA exists to insure lenders against loss in the event that a homeowner defaults […]

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Re-Approve Your Pre-Approval

March 20, 2008

Since December 2007, mortgage lending guidelines have changed very quickly and often without notice. Some of the more well-known changes include: Broad restrictions on stated income home loans Broad restrictions on 100 percent financing “Risk-based fees” for credit scores under 740 Some of the lesser-known restrictions relate to property type and occupancy status as well as […]

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Looking Back And Looking Ahead : March 17, 2008

March 17, 2008

Mortgage rates fell last week on growing evidence of a recession, but far fewer Americans were eligible to take advantage. Mortgage lenders continue to reduce product menus and that is leaving homeowners with fewer mortgage financing options than before. As an added hurdle, Fannie Mae and Freddie Mac recently added “risk-based” fees on all conforming […]

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Mortgage Rates Fell But You May Have A Higher Rate To Pay

March 13, 2008

When mortgages began to sour last Fall, Fannie Mae and Freddie Mac instituted “loan-level pricing adjustments”. The concept is basic: For mortgage applicants with less-than-ideal credit profiles, mortgage pricing is adjusted to compensate for the added risks. It’s still a conforming loan, but with adjustments. Effective March 6, though, Fannie and Freddie’s definition of “high-risk” […]

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Are You Inadvertently Merging Your Credit Score With A Stranger?

February 8, 2008

A 2004 study showed that 4 out of 5 credit reports contained at least one error. The errors were of various types with different implications.  A quarter of the errors, for example, were of the “serious” nature; errors that could lead to a credit denial because of a false-reporting delinquency or collection. A much larger […]

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