Understanding Credit is Key to Having Financial Stability

Do you have a friend or family member who is thinking about buying a home, or refinancing their current home? I build my business by referral, so if you know of someone who could use the expert advise of a mortgage lender or finance officer please don't hesitate to give me call. I'd be more than happy to provide a FREE Consultation.

A lot of people have been asking me about the difference between credit reports and credit scores, so today I have Dave Wheeler from Credit Plus who is my expert on this subject. He's going to clear a few things up for us.

Dave used an analogy to compare a credit report and credit score, saying that a credit report is similar to a movie about your financial picture. A credit report encompasses your whole history, both past and future. A credit score is like a snapshot of your current credit report, and it is always changing from moment to moment. To summarize, I would say that a credit report is the larger picture surrounding your credit score. A credit score is an instant interpretation of your credit report, or a tiny snapshot of your credit picture.

How long does a negative credit report affect you?

Most negative information will stay on your credit report for 7 years, but we know that it's not agreeable to use your past activity as an indicator of how you will behave in the future. As negative reports grow older, they begin to impact you less and less. There is a magic time frame to recover from negative reports starting at 7 months, then 12 months, and then 24 months, etc. The main thing here is not to have multiple negative reportings occur after each other. If you are having trouble keeping good credit, then you should seek professional advice from myself or Dave to point you in the right direction.

Hopefully this information has been helpful to you, and if you have any more questions about credit, please do not hesitate to call me. I can be reached at (215) 591-0222 x 1630 or you can visit my website: www.therightloanforyou.com

Excellent Qualification News for Low FICO Borrowers

Do you have a friend or family member who is thinking about buying a home, or refinancing their current home? I build my business by referral, so if you know of someone who could use the expert advise of a mortgage lender or finance officer please don't hesitate to give me call. I'd be more than happy to provide a FREE Consultation.

Welcome back to my video blog. I have some great news for low FICO borrowers.

Gateway funding has now reduced our minimum FICO requirements for FHA borrowers down to 600 credit scores. There are a few restrictions as it still follows normal guidelines set by the FHA. For FICO scores between 600-619, our maximum debt-to-income ratio is 43% and there can be no mortgage lates in the last 12 months.  Nonetheless, this is a really excellent opportunity to open doors for eligible clients.

You will also need at least 3.5% of your own funds and three month's reserves. For example, whatever your principle in interest payment is, perhaps it's $1,000, we want to see that you have $3,000 in your bank account or in a retirement account after all of your closing costs have been paid.

Overall this is really great news, so if you know anyone that wants to get qualified – be sure to let us know. If you're not sure about your credit, feel free to give us a shout. Call me at (215) 591-0222 x 1630 or visit www.therightloanforyou.com

Hopefully we can get this spring market moving. Thanks for tuning in again!

With Interest Rates at Historic Lows - Learn the Secrets to Simple Refinancing

Do you have a friend or family member who is thinking about buying a home, or refinancing their current home? I build my business by referral, so if you know of someone who could use the expert advise of a mortgage lender or finance officer please don't hesitate to give me call. I'd be more than happy to provide a FREE Consultation.

With interest rates still at historic lows, you might want to consider refinancing your home. However, there are a few factors to consider when making this decision.

If you take a look at these graphs you can notice a trend between the 30 Year fixed Finance and the Refinance Index. For the most part, when one is up the other trends down. In 2014, as the 30 Year fixed finance trends upward, you'll notice that refinancing has steadily lowered itself to a rate around 3.75%

This then begs the question: Is it time for you to refinance? Well, the answer is not so simple as 'yes' or 'no'.

Some crucial factors in deciding this are your current interest rate, and whether or not you have mortgage insurance, and also if there is a program for you to get rid of your current mortgage insurance.

If you're unsure about what to do, feel free to contact me, because interest rates are still very low right now. I am more than happy to help assess your situation and see if you should take action or not.

I'm more than happy to help you make this important decision. Please contact me at (215) 591-0222 x 1630 or at www.therightloanforyou.com