Ready Bell Home Loans @ Mason McDuffie Mortgage » Credit Reports

FHA loan update; Need 640 credit score for most lenders

readybell — Thu, 11 Nov 2010 15:42:52 +0000

In the past few weeks we have seen one bank after another raise their minimum credit score on FHA to 640. Two weeks ago we had 7 main lenders that would allow 620 credit scores.
Today = zero
Why are lenders tighten up while the economy is recovering (as per some media reports)?

Welcome to a preview of 2011. The hushed word on the street is we will see FHA and Freddie Mac tighten up more and Fannie Mae may loosen up a bit. One hand giveth and the other taketh away.

Bottom line: Credit is crucial and will continue to be so for 2011

5 Quick Credit Tips

readybell — Wed, 11 Aug 2010 04:10:54 +0000

Better score = lower rate 5 tips for better credit

1) Keep all balances on credit cards below 30% of available credit

2) Never pay late. If you are disputing a cell phone bill; pay and then dispute. Cell phone companies report to collection companies fairly quickly and this can hit your score fast and hard. Better to pay the $30 then pay higher interest rates for 7 years. Even if they agree you are right, getting a collection off your credit is not easy task. Utility companies and medical billing companies report quickly too so beware.

3) Do not close credit cards and do not open credit cards you do not need. Opening a new line of credit for 10% off is not worth it.

4) Be on top of your credit. Check it once a every 4 months with one bureau. Through the free credit you can check it with each bureau once per year. If you check one bureau in January and the next in May and then in October you will monitor your credit for free for the year. Look for credit cards you do not recognize and new addresses. If your address is wrong alert the bureaus. That is the first sign of ID theft.

5) Check out www.optoutprescreen.com This website, developed by the credit bureaus, gives consumers the opportunity to opt out of receiving credit offers in the mail. Signing up (it is free) can bump your score a few points and it eliminates credit card offers in the mail which cuts opportunites for ID theft.

Most important mortgage news this year

readybell — Thu, 03 Jun 2010 23:57:04 +0000

If you are purchasing or refinancing a home with a loan (not FHA)

DO NOT BUY ANYTHING WITH YOUR CREDIT CARDS.

As of June 1st Fannie Mae is requiring lenders to check the borrowers credit right before funding. If anything changes on your credit your loan that you already have signed loan documents on could be denied. In order to protect yourself

1) DO NOT BUY ANYTHING WITH YOUR CREDIT CARDS OR OPEN NEW LINES OF CREDIT.

2) PAY YOUR CREDIT CARDS ON TIME

3) DO NOT ALLOW ANYONE TO RUN YOUR CREDIT.

By following the three above rules you will have no problems. If you decide to go against any of the above you could be setting yourself up for disaster.