Credit

What Is the Mortgage Appraisal Process?

                    Today, we are going to talk about appraisals and the mortgage appraisal process. When you go to get a mortgage, lenders approve YOU, and your specific financial situation. A lender will begin by looking at your credit, your income and your debts, the sources of your income, and the specific property you are buying or refinancing. The lender will check that the cost of the home is where you need it to be from a financial standpoint, and that it comes in at the right value by doing an appraisal. Finding an Appraiser When doing an appraisal, a qualified appraiser is brought in to appraise the value of the home. Previously, we could pick the appraisers that we brought in to do the appraisal that knew the area well. However, today there is more of a blind system: appraisers are…

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Renovation Loans: How Long to Close

How long does it take to close on a renovation loan? Many folks have heard horror stories on renovation loans, which often times can take 90 or 120 days to close. Realtors often discourage the use of renovation loans because they never close. However, renovation loans can close quickly when set up appropriately. Two main factors influence the amount of time renovation loans will take to close: making sure the loan officer gives good advice on an appropriate time schedule, and you doing your homework. When doing a renovation loan, you will go and find a property and get a contract on the home, and then determine what work needs to be done to the home. Once under contract, your list of repairs and upgrades needs to be priced out, which involves getting quotes from good contractors that will do the work. Coming up with a list of what work…

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How Soon Can I Buy a House After a Bankruptcy or Short sale?

Since the financial crisis of 2007, it seems like everyone knows at least one person who’s pocketbook was hit hard resulting in the loss of their house, or the need to file for bankruptcy. Maybe that person is you. You’ve been through some tough times lately; You’re not alone. Now that you are getting back on your feet, you may be asking yourself, “When can I buy a house again?” Let’s discuss your options for buying a new home after bankruptcy or short sale. Buying a New Home After a Bankruptcy The definition of filing for bankruptcy is the legal proceeding in which an individual is unable to pay their outstanding debts. There are two types of bankruptcy; Chapter 7 and Chapter 13. Chapter 7 bankruptcy occurs when an individual files a petition, their assets are evaluated and used to pay back some of his or her outstanding debt, and…

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Credit 301: What is Bad Credit and How do I fix it?

In our last post, Credit 201: FICO Credit Scores and Improving Credit, we went over what a FICO score is, what impacts it, and started exploring how to improve your credit score. This final mini-course will go into much more detail about the term “bad credit” and how to improve your credit score. Welcome to Credit 301! What is Bad Credit? The short answer is there is no such thing. A bad credit score is only as bad as what it keeps you from doing. If a lender decides to grant you a home loan despite your low credit score, you probably won’t feel like you have “bad” credit after all. We at Academy Mortgage can do FHA loans with a FICO score as low as 580. Even so, there are some general ranges you can refer to when figuring out where your credit score falls on the spectrum. 750+ …

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Credit 201: FICO Credit Scores and Improving Credit

In our last post, Credit 101: Understanding Credit for Home Buyers, we discussed some basics about your credit and where to find your credit reports for the purpose of understanding why having good credit is so important when applying for a home loan. This next mini educational course will go over what a FICO score is, what impacts it, and start exploring how to improve your credit score. Welcome to Credit 201! What is a FICO credit score? FICO stands for Fair Isaac Corporation, who developed the first credit scoring system back in the 1950s. FICO is now the official name of the company, but they still generate THE credit score lenders refer to when deciding on your eligibility for a loan. Conversationally, “FICO score” is synonymous with “credit score.” However while all FICO scores are credit scores, not all credit scores are FICO scores. It is important to make…

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Credit 101: Understanding Credit for Home Buyers

It’s not uncommon for people to start caring about their credit score when they are looking into making a big purchase, such as their first house. And if you discover that your credit isn’t as good as you thought it was, it can make your home-buying process that much more of a challenge. Lucky for you, I have more than 25 years of experience as a lender guiding new home buyers through the brambles of credit towards their goal of owning a home. However in order for me to help you improve your credit, you need to understand it. My plan is to give you a mini educational course. Welcome to Credit 101!   What is credit? Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. There are four types of credit that…

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