• Hillary C

What Do Lenders Look For On Credit Reports?


The credit report and score are arguably the most important pieces of the pre-qualification puzzle. The sooner we review this together, the better chance we have at strengthening your home buying position when that time comes for you.

Here are some of the many pieces of your report that we dive into:

Data Correction

A study by the National Association of State Public Interest Research Group discovered that 79% of all credit reports have at least one error. I want to do everything possible to make sure none of my clients are penalized for something that is inaccurate. To help avoid that, we may need time to rectify errors.

Quick Tips and Suggestions

There may be some quick and easy changes to improve your score. The sooner we look for these opportunities for improvement, the better purchasing position you will be in.

Derogatory Accounts

We look for any collections, judgments, foreclosures, short sales, etc... as those may impact what programs you qualify for. We'll check for seasoning requirements based on how exactly those are displaying on your report.

Debt Utilization

To determine how expensive of a home you qualify for, we utilize your debt-to-income ratio.

Read: How Much Do I Qualify For?

If you want to increase how much you qualify for, we will help you prioritize which debts to decrease for us to get the most bang-for-your-buck in increasing your purchasing power.

Program Limitations

To piggyback off point 3, even if you know you do not have any derogatory accounts, we certainly don't expect you to know all of the mortgage rules! Sometimes there are items that show up on your credit report that are fine to have, but may still limit what programs you can use. For example, if you have a timeshare, that may eliminate you from certain down payment assistance programs. If you have disputed accounts, that too can impact eligible loan products.

Underwriting

To issue you a Pre-qualification, we run your information through what is called an Automated Underwriting System. This cannot be done without your report. Getting a mortgage approved involves layers of scrutiny in which this underwriting system can pick up on. All of this we do free for you, to make sure you are only looking at properties where getting a mortgage based on your financials will not be an issue.

Ready to get started? Contact me today! Or, get pre-qualified here: mainstreethomeloans.com/hcochin

#credit #Prequalification

HC

This website is for informational purposes only. The information contained herein can change at any time, and there is no representation to the accuracy contained herein. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. Please note that the pre-qualification does not constitute a commitment or a loan approval but is instead a preliminary assessment of your current credit worthiness. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Main Street Home Loans is not a Financial Advisor, Tax Consultant or Credit Repair Company. Please make sure to consult your own Financial Advisor, Tax Consultant or Credit Repair Company regarding your specific financial situation. Veterans Affairs loans require a funding fee, which is based on various loan characteristics. VA 580 FICO – Purchases only, must have Automatic Underwriting System (AUS) approval. No cash-out under 600. On a USDA Loan 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. On FHA loans, LTV’s of up to 96.5% for FHA loans. FHA 580 FICO – Credit score below 600 requires Automatic Underwriting System (AUS) approval. Fixed rate loans only. W2 transcript option not permitted. APR describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate. The APR allows a borrower to compare costs of credit because it factors in term, interest rate and fees associated with the loan. Adjustable rate mortgages (ARMs) are home loans with a rate that varies. Your interest rate and monthly principal and interest (P&I) payments will remain the same for a defined initial period, then adjust annually when that initial period is over. During the adjustable period, there will be an interest rate cap that sets a limit on how high your interest rate can go. This product is primarily for a borrower with good credit (min 680 FICO) but a low Loan-To-Value (95% max). Debt-to-income ratios apply. Investment condominiums not allowed. Refinancing an existing loan may result in the total finance charges being higher over the life of the loan. Down payment assistance programs may require an educational class be taken. Down payment assistance programs are typically second mortgages that require the borrower to apply for a first mortgage. Testimonials appearing on this advertisement and Zillow, Yelp, Facebook, Twitter or other social media outlets are individual experiences of those who have used our services. Main Street Home Loans. does not provide incentives for testimonials or reviews. Any customer reviews on or before February 5, 2019 are for services performed prior to employment with Main Street Home Loans. MLO licensing information: DC MLO143670; VA MLO-740VA; MD 5762. Main Street Home Loans is a Division of NFM, Inc. NMLS 2893. NFM, Inc. is licensed by: DC # MLB2893; Virginia Mortgage Lender and Broker, Licensed by the Virginia State Corporation Commission # MC-2357; MD # 5330. For NFM, Inc.’s full agency and state licensing information, please visit www.nfmlending.com/licensing. NFM, Inc.’s NMLS #2893 (www.nmlsconsumeraccess.org). NFM, Inc. is not affiliated with, or an agent or division of, a governmental agency or a depository institution. Copyright © 2019.

 

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