Tag Archives: #credit

Mortgage credit qualification

Balance in your life will lead to a balanced credit profile. Planning the purchase of a home involves multiple steps and financial practices ahead of viewing new homes. A satisfactory credit rating to qualify for a mortgage is not instantaneous. It involves planning, self discipline and intimate knowledge of your personal money management.Mortgage credit qualification

A great number of folks do not know off the top of their heads, what their net and gross incomes are per year. Money management is key in creating and maintaining a balanced credit report with the three (3) major credit bureaus, TransUnion, Equifax and Experian. Money management is knowing exactly how many dollars are coming into your home and how many dollars are exiting. The exit dollars must be designated strategically to work for you. Knowing where each dollar is allocated will allow your goals to be met.

Mortgage credit qualification requires self discipline. Your personal credit profile includes secured and unsecured loans, revolving credit cards, mortgages, vehicle loans, student loans and any loans you may have consented to as a co-applicant, co-signer or guarantor.

In order to qualify for a mortgage, your credit report will project the amount of risk a lender is willing to take by lending you funds to purchase a home. A few of the elements a lender will consider is the amount of debt you have accumulated in reference to your income (debt ratio). The amount of available credit, in reference to your monthly income may be viewed as a higher risk. Little to no credit will not provide enough of a history to calculate risk. The manner in which you pay your obligations is a risk factor. Paying debts late, riding the credit line/limit, bankruptcy, liens, foreclosures, repossessions and charge-off accounts weigh in the negative when calculating the probability of your ability to pay a mortgage payment in a timely fashion. Paying your credit obligations, on time, will increase your credit score and decrease your risk factor.

A free – (really free) credit report, authorized by federal law, is available to each consumer at: www.annualcreditreport.com

Knowing where you spend each and every dollar will also enhance your ability to qualify for a mortgage. A budget that includes saving for a down payment and closing costs will show a lender you’re disciplined and able to take care of your business. Balance in your life includes balance in your budget. Extremes in borrowing practices and running credit lines continuously up to their limits will present “red flags”. Writing down all expenditures, from fast food to gasoline will enable you to realize all money spent. Knowledge will be the foundation to grow your house buying plan.

 

 

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Foreclosure, credit and eviction protection for military women & men

President Obama signed into public law No: 114-142, S.2393 – Foreclosure Relief and Extension for Servicemembers Act of 2015, on March 31, 2016. This law provides an extension through 2017, for foreclosure protection under The Servicemembers Civil Relief Act – formerly known as The Soldiers’ and Sailors’ Civil Relief Act.

The Servicemembers Civil Relief Act (SCRA) provides specific

https://www.justice.gov/sites/default/files/crt/legacy/2011/03/23/scratext.pdf
https://www.justice.gov/sites/default/files/crt/legacy/2011/03/23/scratext.pdf

financial and foreclosure protection for our military women and men that have debt originating before their call to active service.

It is important for creditors and landlords to note some of the provisions of protection in this act:

  • State Tax Relief
  • Termination of Property Leases
  • Eviction Protection
  • Foreclosure and Forced Sale Relief
  • Judicial Relief – does not include criminal
  • Ability to Terminate Automobile Leases
  • 6% Cap on Credit Interest Rates
  • Credit Rating Safeguards
  • Insurance Cancellation and Reinstatement protections

There are specific requirements which must be followed to insure the protections for the servicemembers. The credit or mortgage borrowers must request the protection under this act. The loan or debt must have originated prior to the current active military service. The lenders, landlords, creditors, insurance companies, etc. must be notified, in writing, the servicemember is requesting protection under The Foreclosure Relief and Extension for Servicemembers Act of 2015.

This is a general list of provisions. Further specific information is available at: https://www.justice.gov/sites/default/files/crt/legacy/2011/03/23/scratext.pdf

 

 

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