Credit
Top 10 ways to repair credit, boost score
Wednesday, January 23rd, 2008When it comes to repairing your credit, you’re the best person for the job.
Credit repair scam artists will charge you anywhere from $500 to $1,500 or more upfront, and promise you everything from a new Social Security card to perfect credit.
But these companies can’t do anything for you that you can’t do for yourself — [...]
What is the first step when looking for a home loan?
Monday, January 14th, 2008Most experts recommend that you should get prequalified for a loan first. By being prequalified, you will know exactly how much house you can afford. Almost all mortgage lenders now prequalify and preapprove customers, and many of them can even do it on the Internet. You also can do your own affordability calculations; most recent [...]
What can I afford?
Monday, January 14th, 2008Know what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. In general, lenders don’t want borrowers to spend more than 28 percent of their gross income per month on a mortgage payment or more than 36 percent on debts.It pays [...]
How do you qualify as a first-time buyer?
Monday, January 14th, 2008In general, lenders define a first-time home buyer as someone who has not owned any real estate — whether a personal residence, vacation home or investment property — during the past three years.Lenders verify an applicant’s status by examining their income tax returns, checking to see that the individual did not take any deductions for [...]
What is a gift letter?
Monday, January 14th, 2008If someone is willing to make a gift of funds in order for you to purchase a home, lenders will ask for a gift letter stating that no repayment of the “gift” is expected. The amount of the gift and the date funds were transferred should be spelled out in the letter, along with the [...]
Do I have to disclose a parent’s gift?
Monday, January 14th, 2008Having generous parents is nothing to hide. An estimated one-third of first-time buyers purchase their home with a loan or a money gift from their parents.Lenders will ask for a gift letter stating that no repayment of the “gift” is expected. In addition to the letter, a lender can ask for two or three months’ [...]
Will bad credit prevent someone from getting a home?
Monday, January 14th, 2008Answer - Back
Will bad credit prevent someone from getting a home?
There are numerous types of credit report problems (which may or may not be your fault) that would cause a lender to reject your application for a loan.Such problems include: missing a credit card payment, defaulting on a prior loan, filing for bankruptcy in the [...]
Where do I get information on consumer credit laws?
Monday, January 14th, 2008For information on consumer credit laws, contact the National Foundation for Consumer Credit, 801 Roeder Road, Suite 900, Silver Springs, MD 20910; call (800) 388-2227; nfcc.org.
What exactly is bad credit?
Monday, January 14th, 2008There are numerous types of credit report problems that would cause a lender to reject your application for a loan.Such problems include: missing a credit card payment, defaulting on a prior loan, filing for bankruptcy in the past seven years or not paying your taxes. Other black marks on a credit report include a judgment [...]
What do I do if I get turned down for a loan?
Monday, January 14th, 2008Increasing numbers of loan applicants are finding ways to buy their own home despite past credit problems, a lack of a credit history or debt-to-income ratios that fall outside of traditionally acceptable ranges.Ask the lender for a full explanation, then appeal the decision in writing.