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Mc Griffin Campbell's Blog

By Mc Griffin Campbell | Broker in Los Angeles, CA
  • Rent payments being added to your credit profile: It's true

    Posted Under: Home Buying in California, Home Selling in California, Credit Score in California  |  August 26, 2014 5:41 PM  |  39 views  |  1 comment

    Part I.  Rent Payment data being added to credit Profiles

    Trans Union  and Experian are using them in computation of consumers' score

                                                    Fact Sheet

     National Bureaus-Experian and TransUnion have begun incorporating verified rental payment data into credit files where it can be included in the computation of consumers' scores when they apply for a mortgage.

    ·         Experian announced recently that it is teaming up with Rent Track, a service that enables tenants nationwide to pay their rents online and have their monthly payments included in Experian credit reports.

    ·         TransUnion confirmed that it to is working with Rent-Track and is introducing a "Resident Credit" service that encourages rental property managers too report monthly payment information for their tenants.

    ·         TransUnion also released a new research study that showed how the inclusion of rental data can raise consumers' scores.  When their monthly payments were reported to the bureau by landlords, nearly 20% of renters saw a 10-point increase or more in their score after just one month.

    ·         Nearly 2/3 of renters saw at least some increase in their scores within a month or remained neutral.

    ·         The same study documented that simply transitioning from renter status, in which monthly payments are not reported to home owner, in which mortgage payments show up in credit reports, boosts most consumers' scores.  On average, TransUnion said, people who bought  first home in 2012 saw a 5.2% increase in their credit scores during the year.

    ·         With the advent of Resident Credit, the company said, rental managers and landlords would be able to report payment information at no charge and that TransUnion would, if requested, share the data with other national crdit bureaus for inclusion in their records and scores.

    ·         Rent Track could be especially helpful to tenants, whether they're in large apartment complexes  or off campus student housing or are renting from mom and pop landlords.

    ·         Not only are payments reported directly to 3 or 3 major credit bureaus, but tenants can pay rents using electronic checks rather than paper  and can track their credit score progress.

    ·         The service costs $1.95 a month, but Matt Briggs, RentTrack chief executive and founder, told me that  most tenants don't pay anything because the property manager or landlord picks up the charge.

    ·         Renters who are interested simply have to ask their landlord or manager to visit the RentTrack site and sign up.

    ·         Other efforts are underway to help first time buyers and others get monthly payments into their credit profiles.

    ·         Brannan Johnston, Experian RentBureau managing director, said his company is exploring ways to incorporate utilities and cable payments into standard credit reports.

    ·         Equifax has created a consumer  services data base  on individuals telling communications, utilities  cable and satellite payments that mortgage lenders can access o if borrowers believe these records will improve their chance to qualify

    ·         ECredable.com, an alternative credit data company will verify a long list of your payments' that aren't reported to the major  bureaus,  then create a credit report and score based on these records.

    ·         You can then present them to a mortgage loan officer and request that  the information be considered as part of your application.

    ·         Under federal  credit regulations, the mortgage company is required to do so.

    ·         Bottom line:  Just because you don't have lots of  traditional credit data on file doesn't mean you can[t buy your  first home. Things are looking up.

    Source: LA Times, August 10, 2014

  • A Do it yourself Credit Check

    Posted Under: Home Buying in California, Home Selling in California, Credit Score in California  |  November 21, 2013 6:36 PM  |  305 views  |  1 comment

    A Do it yourself Credit Check

    I. Did you know?

    · Federal law gives you the right to know what's in your credit files.

    · Before you apply for mortgage loan, find out whether anything in your record might present a problem.

    · Order a report 2-3 months before making a loan application to give yourself plenty of times to iron out any wrinkles that you discover.

    II. It's wise to check all 3 major credit bureaus

    · Equifax, Trans Union and Experian-for errors

    · Experian and Trans Union offer consumers in the following states one free report a year; Colorado, Georgia, Maryland, Massachusetts, New Jersey and Vermont.

    · Contact each credit bureau for further details:

    1. Equifax: www.equifax.com

    2. Trans Union: www.tuc.com

    3. Experian: www.experian.com

     

    III. You may order online and pay by credit card.

    · If you are ordering a free credit report or paying by check or money order, you will need to write a letter including your full name, date of birth, name of current and past spouses, your social security number, and current and previous addresses going back 5 years .

    · Your date of birth and a copy of your driver's license may also be required.

    IV. Mailing letters or filling in forms online can be a hassle.

    · First American Credco Inc. (800-443-9342; www.facredco.com) a Santa Ana, CA. credit reporting company, sells a merged report that shows your combined credit history.

    · At $29.95 the merged report costs about the same as getting separate reports directly from the big three.

    V. If you discover an unfavorable report, now is the time to rectify the error or seek settlement.

    · A lender may view the problem more leniently if the record shows that the matter has been satisfactorily resolved.

    VI. If you've been tagged unfairly for nonpayment or slow payment,

    · write a well documented letter setting forth your understanding of the facts, and file it with the appropriate credit bureaus.

    · If you aren't sure which bureaus have a file on you, find out from the problem creditor.

    VII. Better still, get the problem resolved

    · then request, in writing, that the creditor inform all relevant reporting services that the problem has been fixed-with copies to you.

    · This could take 30-90 days

     VIII. Errors generated by the credit bureau

    · Such as mixed up files-need to be corrected there.

    · If using a complaint line or calling the local office doesn't help,

    · write to the manager of consumer affairs.

    · The bureau should accept documentation proving the account is not yours.

    VIV. Report your problems

    · To the US Public Interest Research Group, 218 D St. SE, Washington, DC, 20003; 202-546-9707; www.pirg.org/uspirg/index.htm or email at uspirg@pirg.org.

    X.  If the problem remains unresolved

    · you'll probably need to consider hiring a lawyer to clear things up.

    ·  

    XI. When you finally make a loan application,

    · the lender will request a complete update on your file, and you may be charged $100. or so for this credit check.

    · The lender will usually ask the credit agency to revert  our employer, salary, address and other information.

    · Alert your employer's personnel office to the credit checker's call.

    · If your credit application is turned down, you're entitled to know why.

    References:

    Knowing and Understanding Your Credit and Choosing the Mortgage that is right for you  are free step by step guides from:

    · Fannie Mae Foundation, (4000 Wisconsin Ave., NW, North Tower, Suite One, Washington, DC 20016-2804; 800-611-9566; www.fanniemaefoundation.org): You may download  and then online or receive them by mail via phone, mail or online order.

    · Affording Your First Home contains a review of fees first time buyers face, a worksheet for determining how much they can afford to borrow, and an amortization table (HSH Associates, Financial Publishers, 1200 Rt 23, Butler, NJ 07405; 800-873-2837; www.hsh.com/catalog.html#3 primer; include $3 for postage and handling).

    · Mortgage Strategies for today's Homebuyers discusses different mortgage types,

    · Selecting the right mortgage to meet your timeframe and financial needs, biweekly and other pay off methods, worst case ARM scenarios and more (also by HSH Assoc., above; include $3 for postage and handling.

    Hollywood Homes by MC MC Griffin Campbell, Broker/Owner:  License #: 01819507
    Short Sales and Foreclosure Resource (SFR) Certification

    Seniors Real Estate Specialist Designation (SRES); MFT, M.Div.

    323-382-4364: 323-464-5431

    Fax #: 323-927-1711   
    www.hollywoodhomesbymcampbell.com
    email:
    hollywoodhomesmc@aol.com

     

     

     


       

  • Buying a house on bad credit? Is it possible? Part I & II

    Posted Under: Home Buying in California, Financing in California, Credit Score in California  |  September 24, 2013 6:03 PM  |  554 views  |  1 comment

    Fact Sheet: Buying a house on bad credit?  Is it possible? Part I.

    Need to know

     

    · For years, the FHA had no minimum credit score requirement at all. Now though, it requires a minimum of 580 to qualify for a 3.5%-down loan and 500 for a 10%-down mortgage.

    · In practice, however, some banks will impose higher standards, according to Scott Sheldon, a loan officer with First California Mortgage in Sonoma County, Calif.

    · "We FHA lenders have to protect ourselves and we've been going with a 640 minimum for a 3.5% mortgage," he said.

    · High-risk borrower got lucky: Scott Sheldon, a loan officer with First California Mortgage in Sonoma County, California reports:

    · Sheldon had one client who seemed like an impossible case. The client was buying a home in Healdsburg, California, the heart of Sonoma's wine country. His credit score was just over 600, he was paying alimony and child support and he only had enough money for a small down payment. And there was one additional tiny problem: He had just emerged from bankruptcy in April 2009.

    · In other ways, he was low-risk borrower. He grossed $10,000 a month, ample enough to satisfy debt-to-income guidelines on the $315,000 home he was buying, and he was able to document a stable work history.

    · The client knew he had to raise his credit score above the 600 level in order to improve his chances. So he paid a credit repair service, Lexington Law, about $500 to find and correct errors in his records. That helped boost his score above 640.

     

    Source. New YorkCNNMoney.com

    Part II. What should you know?  What should you do to help repair your credit score?

     

    ·     One way is to wait it out, improve your credit score and then apply for a traditional mortgage.

    · It takes a year or two of hard core effort to raise your credit score high enough to enable you to qualify for a low interest rate home loan.

    · Ways you can help to repair your credit score.

    1. Check your credit reports

    2. Request your credit report from all three major credit agencies.

    3. Verify that everything on the reports is accurate and report any errors to the credit agency that published the report. You can actually help your credit score by correcting the errors.

    3. Calculate your "loan-to-value" ratio

    · For example, a borrower qualifying for an 80 percent LTV loan can purchase a $100,000 home with a loan of $80,000.

    4. Debt-to-income ratio

    · You can calculate your debt-to-income ratio by adding together all of your debt payments, including the loan being applied for. Divide this number by the net cash available to you each month for living expenses after debt payments. A score of approximately 40 percent or less is preferable and will give you good odds at getting the loan.

    5. Use credit to repair your credit

    · Another way to repair your credit is by using credit. Find new forms of credit and pay them back on time. If you already have a credit card, make sure it stays paid off. Use it once a month, but ensure that you pay the balance off each month in full or at least try to pay back a bit more than the required amount. This looks good on your report. If you don't have a credit card, try to get a "secured" credit card offered by the bank wherein the amount you deposit into the account is the amount of credit you are allowed

    6. Apply for a "bad credit home loan"

    · If you do not want to wait the average 24 months to get your credit up to par, and you need a house right away, the other option is to seek out a bad credit home loan, also called a subprime loan. Subprime mortgages charge exorbitant interest rates. Be certain you can afford to make the monthly payments.

    · The housing crisis of 2008-2010 imposed severe restrictions on banks and lenders with respect to the interest rates and origination fees they are allowed to charge. Keep in mind that income verification will be required.

    7. Find the best rates

    · If you do opt for a bad credit mortgage, spend time looking online for the best mortgage rates. There is an abundance of online poor credit lenders who would willingly be available. Regardless of which type of loan you are applying for, it is important to spend time researching the best mortgage rates and evaluating the history of the lender.

     

    Note: Even with bad credit, it is possible to buy a home.  Why wait to buy real estate-buy real estate and wait!  Your feedback is appreciated.

      

    Hollywood Homes by MC

    MC Griffin Campbell, Broker/Owner:  License #: 01819507

    Short Sales and Foreclosure Resource (SFR) Certification

    Seniors Real Estate Specialist Designation (SRES); MFT, M.Div.

    323-464-5431

    Fax #: 323-927-1711

    www.hollywoodhomesbymcampbell.com

    email: hollywoodhomesmc@aol.com

     

     

  • Credit Score Requirements for the Home Mortgage Process

    Posted Under: Home Buying in California, Financing in California, Credit Score in California  |  September 24, 2013 5:57 PM  |  486 views  |  No comments

    Fact Sheet: Mortgage Requirements

    First time buyers: Need to Know

    Credit Score Requirements for the Home Mortgage Process

    Before applying for First time Mortgage Loan, be committed to "Be in the Know."

    1. Credit Score  guidelines for Mortgage Application from top banks 

    · Bank of America: 640

    · Wells Fargo: 740: Some flexibility: 700 could  possibly be considered

    · Chase: 640

    · Citi Mortgage:  620 baseline

    Ref. Directly verified via phone 09/24/13

    2. Income stability

    • Income can come from primary, second, and part-time jobs, as well as overtime, bonuses, and commissions.
    • You may use other sources of income — including retirement or veteran’s benefits, disability payments, alimony, child support, and rental or investment income – provided they can be verified with a two-year history.1

    Assets and available cash

    • Do you have enough money for a down payment and closing costs?
    • You may use funds from a savings account, certificate of deposit (CD), investments, and retirement fund.
    • In some cases, you may be able to use gift funds toward closing costs and all or part of the down payment.
    • In many cases you will also have to demonstrate that you have additional cash in your accounts to cover several months’ mortgage, tax and insurance payments.

     

    · Property appraisal

    · What is the market value of the property you want to purchase?  Ordering  a property appraisal to make sure your purchase price is in line with the true market value is important.

    Current debts and credit history:

    • Do you pay your bills, loans, credit cards and other debt on time?
    • Process of examining basic employment habits before deciding to loan money.
    • Your credit history and credit score also determines what interest rate you pay.

    Debt-to-income ratio:

    • Your expected monthly mortgage payment (principal, interest, taxes, and insurance) plus your other monthly debt obligations, are compared to your gross (pre-tax) monthly income.
    • Mortgage program guidelines vary, but a good rule of thumb is to keep your total debt level at or below 36% of your gross monthly income.

    Housing-expense-to-income ratio:

    • Compare just your expected monthly mortgage payment to your gross monthly income.
    • Mortgage program guidelines vary, but a good rule of thumb is to keep your housing expense level at or below 28%.

    Power Point in a Nutshell:  Borrowers  must meet 4 criteria to get a loan backed by FHA

    · The ability to make a 20% down payment, plus closing costs.

    · A good credit score. Borrowers usually need a minimum credit score of 620.  (Some banks: (See Part I to clarify)

    · Enough income to afford payments. The general rule of thumb: no more than 28% of your gross income should go toward housing costs.

    · A loan-to-value ratio of 80%. Some Lenders want the home value to far exceed the mortgage balance because if a borrower defaults, the bank sells the home to recoup the loss.

    Reminder:  In today's market, however, even having all four of these factors in place doesn't always guarantee that you will get a loan

    Now that you're in the "Know,"  Don't wait to buy real estate-buy real estate and wait! Allow Hollywood homes to help navigate you through the process.  Get in the Hunt-Stay in the Hunt for your dream home.  The key to your Dream home awaits you.

    Hollywood Homes by MC

    MC Griffin Campbell, Broker/Owner:  License #: 01819507

    Short Sales and Foreclosure Resource (SFR) Certification

    Seniors Real Estate Specialist Designation (SRES); MFT, M.Div.

    323-382-4364: 323-464-5431

    Fax #: 323-927-1711

    www.hollywoodhomesbymcampbell.com

    email: hollywoodhomesmc@aol.com

     

     

  • Fannie Mae & Freddie Mac: Short Sale: New guidelines: Be in the know

    Posted Under: Home Selling in California, Financing in California, Credit Score in California  |  September 16, 2012 9:44 PM  |  484 views  |  2 comments

    Real Estate News flash: Fannie Mae & Freddie Mac: Short Sale

    Fact Sheet  

    Short Sales: New guidelines:  Be in the know

    • New plans:  Fannie Mae and Freddie Mac-the dominant sources of home loan funds recently outlined plans to approve short sales for underwater borrowers who are current on their loan payments, provided that they face an imminent hardship.  Read on regarding credit score:
    • Short sales traditionally have been associated with extended periods of delinquency by borrowers.
    • The technique itself-in which the lender agrees to accept less than what’s owed and the property is sold-usually has been employed as an alternative to foreclosure.
    • FICO credit score-the major risk predictive tool used in the mortgage industry has severely penalized borrowers who opt for short sale.
    • VantageScore, the FICO rival created by the 3 national credit bureaus, also hits short sellers with triple digit point losses.
    • Short sellers by the company concluded that they represent a high degree of risk to lenders.
    • More than 55% of short sellers in a sample of borrowers from 2007 to 2009 went on to later default on other credit accounts after completing the sale transaction
    • This ranks them in the same heavy weight risk class as people who have been foreclosed upon, filed for bankruptcy or had a tax lien or collection account.
    • The scoring system credit experts say it isn’t set up to recognize or properly report short sales by on time mortgage customers to the national credit bureaus.
    • And the credit score companies aren’t planning to make any changes to the penalties their models assign to people who participate in short sales.
    • A spokesman for Fair Issac Corp (FICO) score, says that in general when a loan is paid off for less than the full balance it is classified as a severed negative item by the FICO scoring model and there are currently no plans to change.
    • A Fannie Mae spokesman, Andrew Wilson, said his company has no control over how short sale whether people who paid on time or those who did not are scored.
    • But when borrowers do a short sale rather than force the lender to foreclose, Fannie rewards them: They are potentially eligible for a new mortgage again w/in 2 years of a short sale.
    • People who go into foreclosure, by contrast may not be able to get a new Fannie loan for as long as 7 years
    • Bottom line: If you’re underwater and plan to use the new Fannie Freddie short sale program this year don’t bank on any special favors when it comes to your credit score.  It looks as if you are going to take a big hit despite all your on time payments.

    Be Informed now.   Knowledge is power!

    Source: LA Times

     

    Hollywood Homes by MC

    MC Griffin Campbell, Broker/Owner:  License #: 01819507

    Short Sales and Foreclosure Resource (SFR) Certification

    Seniors Real Estate Specialist Designation (SRES); M.A, M.Div.

    323-382-4364: 323-464-5431

    Fax #: 323-927-1711

    www.hollywoodhomesbymcampbell.com

    email: hollywoodhomesmc@aol.com

     

  • Tax exemption on principal reduction and other mortgage aid is set to expire:

    Posted Under: Home Selling in California, Foreclosure in California, Credit Score in California  |  September 16, 2012 9:40 PM  |  363 views  |  No comments

    Real Estate Mortgage Breaking News:

    Fact Sheet: A need to know

    Tax exemption on principal reduction and other mortgage aid is set to expire:

    · Tax exemption on principal reduction and other mortgage aid is set to expire:

    · A special exemption of as much as $2 million per household in principal reduction and other aid from banks, in place since 2007, is set to expire at year’s end.

    · Mortgage debt that is forgiven by a bank, as part of the principal reductions, short sale or foreclosure must be reported as income by the homeowners and is subject to taxes. 

    · The lender will report the amount forgiven on a special IRS form

    · Principal reduction received this year still will be eligible for the exemption when homeowners file their 2012 taxes next spring.  But much of the aid from the 3-year settlement, which became final in April, will come after this year.

    · Housing advocates and lawmakers are worried that the exemption will disappear just as thousands of homeowners are receiving large amounts of mortgage debt relief from the nation’s five largest banks as part of a national settlement of foreclosure abuse investigations.

    · The expiration of that provision is a hidden time bomb, said Rep. Jim McDermott D. Wash.

    · He and other lawmakers are expected to push for an extension of the special tax exemption when Congress returns from summer recess next week, but even with bi partisan support it’s unlikely to get a vote before the November election.

    Source: LA Times

    Hollywood Homes by MC

    MC Griffin Campbell, Broker/Owner:  License #: 01819507

    Short Sales and Foreclosure Resource (SFR) Certification

    Seniors Real Estate Specialist Designation (SRES); MA, M.Div.

    323-382-4364: 323-464-5431

    Fax #: 323-927-1711

    www.hollywoodhomesbymcampbell.com

    email: hollywoodhomesmc@aol.com

     

  • Refinancing? Shop around is a must: You maybe able to do better.

    Posted Under: Market Conditions in California, Financing in California, Credit Score in California  |  September 16, 2012 9:37 PM  |  436 views  |  No comments

    Real Estate Refinance News Flash

    Fact Sheet:  You need to know right now: Refinancing?  Shop around is a must: You maybe able to do better.

     

    • A Borrower should know they can do better if they shop for the best rate instead of grabbing the first refi pitched
    • Senior editor at Consumer Reports, Jeff Blyskal advised borrowers to talk to several banks, savings and loans and credit unions to gauge available rates and terms: our whole thing is shop everywhere you can.
    • Borrower should consider consulting a mortgage broker who has access to multiple lenders perhaps consulting the Nat. Assn. of Mortgage Brokers to find a certified professional
    • Don’t rule out small local banks some of which are eager to make mortgage loans.
    • Quoted rates can vary by more than a percentage point for the same customer seeking a 30 year fixed loan, according to a LendingTree Representative.
    • Lending standards remain tight and may pose some challenges if credit is not rock solid.

    Note: It appears to be  a great day for Lenders: Lenders Profits and revenue are  soaring at an all time high. The profits are greater despite rising costs for personnel, commissions, office space and equipment in mortgage industry. Are Borrowers having a great day? What say you?

    Source: LA Times

     

    Hollywood Homes by MC

    MC Griffin Campbell, Broker/Owner:  License #: 01819507

    Short Sales and Foreclosure Resource (SFR) Certification

    Seniors Real Estate Specialist Designation (SRES); MA, M.Div.

    323-382-4364: 323-464-5431

    Fax #: 323-927-1711

    www.hollywoodhomesbymcampbell.com

    email: hollywoodhomesmc@aol.com

     

     

     

     

     

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