Buying a home you can grow into, versus something that fits you now, is smart planning.
If you’re preparing to buy a house, you’re probably taking a good, long look at your credit history – or perhaps lack thereof.
One of the most frequent questions our mortgage bankers are asked by customers is how to improve their credit.
If you want to take your credit score to the next level, whether your score is in the pits or you wish to up your buying power for the house you’re saving for – here are the five things Daniel Bortz from trulia says you should avoid with your credit:
If you’re seeking a home loan but having credit woes, you’re not alone! Understanding and striving towards a better credit situation is a path shared by many Americans, as evidenced by a recent Experian survey.
Student loan debt is a hurdle facing many millennials as they become interested in becoming first-time homebuyers. But is it a hurdle that can’t be overcome? Here’s the skinny on student loan debt and mortgages.
If you’re buying a home or looking to make some energy efficient upgrades (which we’ve mentioned earlier this week as being one way to save big on your taxes) take extra consideration when investing in a water heater.
With taxes still on your mind, it’s never too early to consider how to lower your tax bill for next year. If you’ve got plans to renovate your home or even buy a home that you intend to make improvements to, you could have tax deductions or credits in your future!
There are many ways that you can protect yourself from identity theft, but two of the easiest ways are to securely dispose of and store your documents.
Documents you should always shred:
- Any document with your bank account number or credit card number
- Prescreened credit card offers
- Voided checks
- Expired or closed bank or credit cards
- All bills and statements
- Insurance documents
In addition to shredding all of the above named documents, you should also be mindful of the documents that you carry with you outside of your home. Unless you are going somewhere that you need the following documents, they should always be left at home: additional credit cards, checkbooks, social security card, passport, birth certificate or other identifying information other than your driver’s license. Make sure that you leave the items in a secure place in your home, or get a safety deposit box at your bank so that you can securely store them there.
By following these simple steps, you can help secure your identity and personal credit information.
For many first time home buyers, some of the biggest questions about buying their first home, revolve around how much their mortgage will cost. Not necessarily the mortgage itself, but the fees and costs associated with procuring the loan. Closing costs, escrow costs and down payment percentages are usually the biggest costs that borrowers worry about when getting a mortgage. Fortunately, closing costs and escrow costs are detailed in the GFE – a document that estimates the closing costs well before closing.
For individuals without any credit, securing a mortgage loan can be nearly impossible. Most of us know that a mortgage approval is based on several different factors, however, the largest factor is your credit – or more specifically, your FICO credit score.
Currently, FICO scores pulled from Equifax, Experian, and TransUnion are the only reports to measure a potential borrower’s credit worthiness.
But there’s a problem with that – some would be borrowers have so little credit that they don’t even have a FICO score at all, and because of that, some borrowers are turned down for mortgages.
However, all of this may be changing soon, according to an announcement by HUD Secretary Julian Castro and NAR President Chris Polychron earlier this month. According to the two industry specialists, the agencies are exploring alternative credit systems in an effort to expand American’s access to mortgages.
This announcement falls in line with last year’s statement by VantageScore – an alternative scoring system – that Fannie Mae and Freddie Mac, the two government loan agencies, were looking into updating their credit scoring methods.
Though it has not yet been confirmed that VantageScore will be used along with or in place of FICO scoring, this new development – if utilized – could work to change the game for many borrowers – 7.6 million borrowers to be specific.