Benefit 3 – Avoid contractual problems by getting pre-approved by a reputable lender

Did you know the standard Residential Real Estate Agreement commonly used in Oregon allows the seller to prevent you from switching lenders or loan programs?

In this short video I explain the third benefit of being pre-approved for a home loan prior to starting your search:

Consumers should take the time to compare lenders prior to starting their home search because once they are in an accepted offer they need the sellers written consent to switch lenders.

If you would like to get pre-approved then please contact me today to get the process started!

Benefit 2 – Avoid surprises by getting pre-approved before you start your home search

Are thinking of buying a home and wondering when you should get pre-approved?  Unless you are open to the potential for an unwanted surprise, I recommend you get pre-approved early on.

In this short video I explain the second benefit of being pre-approved for a home loan prior to starting your search:

By taking the time to get a mortgage pre-approval ahead of time a competent lender will be able to properly set your expectations for monthly payments, closing costs, and down payments.  This way, you can direct your home search at a level that is financially sustainable for you.

If you would like to get pre-approved please contact me today to get the process started!

Benefit 1 – Getting pre-approved for a mortgage

Are you thinking of buying a home and wondering if you should get pre-approved?  The answer is “YES!” especially in Portland, Oregon where desirable homes are still very competitive.

In this short video I explain one benefit of being pre-approved for a home loan prior to starting your search:

By taking the time to get a mortgage pre-approval, a home seller will take your offer more seriously than without one.

If you would like to get pre-approved then please contact me today to get the process started!

Credit Myth #7- Qualifying for a home loan without a credit score

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit.  In this series of videos I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The seventh myth is that an applicant without a credit score cannot qualify for a mortgage.  Please watch this short video to learn the truth:

It is possible for people without a credit score to obtain a home loan.  They have to be able to demonstrate that they have made on-time payments for other recurring payments such as rent, utilities, insurance or other similar bills.  This is known as a “non-traditional credit reference”.  This approach may not be used for an application with a credit score that is too low to qualify.

If you would like to learn if this loan program would work for you please contact me today!

A short outlook for housing in 2019

Have you made it a goal to buy a home in 2019?  If so then knowing when to buy can offer real savings.  In this short video I explain why I think home buyers that take action at the beginning of the year will likely be better off than those who wait.

As explained in the video, many experts are predicting that home prices and interest rates will rise throughout the year.  Given that mortgage rates are currently at multi-month lows, I am encouraging those who want to buy a home to look sooner rather than later.

If you would like a no obligation review of your options please contact me today to get started.  Thanks!

 

Credit Myth #5: All forms of debt are equal

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit.  In this series of videos I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The fifth myth is that all forms of debt are looked at equally.  The credit scoring algorithms classify debt as either being an installment loan or revolving credit.  Watch this short video for more information on how to manage these forms of debt to enhance your credit.


Revolving Credit

An example of a revolving account is a credit card.  A lender approves a borrower to spend up to a credit limit.  It is then up to the borrower to determine how much they borrow relative to that limit and how much they pay back each month.

Generally speaking revolving credit is considered riskier than installment loans but when a borrower has a history of using their revolving credit conservatively this will improve their credit.

Installment Debt

An example of an installment loan is a fixed rate mortgage.  In this case the borrower receives a lump sum from the lender and agrees to repay the loan over a period of time with interest.  It is most important that a borrower make the payments in a timely fashion.  In general, an installment loan is considered less risky than revolving credit.

Ideally, a consumer will carry a mix of installment and revolving accounts and make their payments in a timely fashion.

Please contact me today to learn more!

Credit Myth #4: Your Job and Income Contribute to Your Credit Score

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit score.  Over the course of the next few weeks I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The fourth myth is that a person’s job and level of income contribute to their credit score.  This is not true.  A person’s job and/ or income are not data points included in the algorithm that determines a credit score.  Certainly higher incomes allow households to better afford their payments and make it less likely they would incur adverse events.  But, at the end of the day a person’s credit score is entirely based on their previous credit behavior.

As THIS ARTILCE points out the information that contributes to a person’s credit score are……

  • How length of a person’s credit history
  • If they have repaid their loans as agreed
  • If they have any missed payments which were 30+ days delinquent
  • How they are currently using debt (is the overall level of debt increasing, decreasing, or remaining stable?)
  • The mix of different types of credit accounts
  • If they have any past derogatory events like bankruptcies, foreclosures, short sales, judgements, or collections.
  • If they have recently made other credit inquiries

Please contact me today to learn more about your home loan options.

Credit Myth #3: A high credit score can make up for a low credit score

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit score.  Over the course of the next few weeks I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The third myth is that a high credit score in a joint loan application can make up for a low credit score.  The reality is, mortgage underwriters use the lower of the two applicants’ credit scores when evaluating a joint loan application.  It doesn’t matter if the higher credit score applicant has perfect credit or is only marginally higher.  The underwriter will use the lower of the two scores in determining if the application can be approved and in pricing the interest rate.

Sometimes it may be possible for the applicant with a higher credit score to qualify for a loan independent of the applicant with the lower credit score.  In that instance it may make sense to complete the loan application in the higher credit scorer’s name only.

Please contact me today to learn more about how your credit will impact your next home loan process.

Credit Myth #2: Having your credit report pulled will ruin your scores

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit score. Over the course of the next few weeks I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The second myth is that having a lender pull your credit report will ruin your credit score. It is true that credit inquires will reduce a consumers credit score. For each consumer the impact will be different, but for most the adverse effect is very small. In fact, according to THIS ARTCILE one credit inquiry will only reduce a person’s score by less than five points. Take a moment to watch this short video to learn about the special exception that applies to the mortgage industry pulling your credit:

Please contact me today to learn more about how your credit will impact your next home loan process.

Credit Myth #1: You have only one credit score

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit score.  Over the course of the next few weeks I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The first myth is that we all only have one credit score.  In fact, consumers have over 40 different credits scores which are determined by various algorithms that specific industries subscribe to.  Please watch this short video to learn more:

Want to learn more?  I found THIS ARTICLE in Forbes online which goes into greater detail.

Please contact me today to learn more about how your credit will impact your next home loan process.