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Beth, Other/Just Looking in New York, NY

When buying a home do mortgage companies consider property taxes/maintenance fees how to raise credit score?

Asked by Beth, New York, NY Sun Aug 26, 2007

I was courious when going for a home loan, do mortgage companies look at the property tax/maintenance fee prices and say that if this is higher then you would need to make a higher salary than if it was lower? Or is it just solely the mortage that they are considering? And what credit score is needed to get the best interest rates? Is there particular things that can be done to raise a credit score practicuarly within a years time frame?

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After we,mortgage brokers,find the best suiting program for our customer, they can see their monthly mortgage payments including the property taxes/maintenance and insurance.By looking at your income we tell you how much you can efford.This is also called a pre-approval letter which is given after looking at your credit history and FICO score.I would say you can get great rates with a FICO 680 and up.If your FICO is below 680 we can still fix (rescore) your credit free of charge in a week and get you the best rate.
To maintain a good credit score you need to have a least 4-5 tradelines,active with a balance of less then 30% of each accounts limit.
Please let me know if I can be any help, I would be more than happ,thank you
0 votes Thank Flag Link Sat Nov 17, 2007
All of that is taken into consideration when calculating your debt to income ratio. Beware of associations that have high fees.
Web Reference: http://GetPrequalified.com
0 votes Thank Flag Link Wed Nov 14, 2007
Mortgage companies will definetely look at property taxes, insurance for the home, maintenance fees (if applicable), mortgage insurance if needed, car payments, credit card payments, etc. This is how they are able to know what amount of mortgage you can or can't afford. A credit score above 720 is considered very good. You can also improve credit rating by paying down some of your older credit debt.
0 votes Thank Flag Link Sun Aug 26, 2007
We loan officers estimate the following houses expenses to calculate your housing expense ratio for determining a mortgage: 1. Mortgage payment 2. Mortgage Insurance (more accurately default or foreclosure insurance that protects only the lender) 3. Hazard insurance premiums including Fire, Wind, Earthquake, Flood, Burglary, Vandalism and "all perils covered" 4. Property Taxes 5. Homeowners Association Maintenance Fees, 6. Special District Fees.

The loan officer does not need to consider gas, electric, water, garbage pickup etc. for homeowners.
in the calculation of basic housing expense. These utilities are considered to be "variable" { You can wear extra sweaters in the winter, drink lots of water in the summer )

There are some mortgage programs that calculate energy savings for super efficient homes and energy upgrades to slightly increase the allowable mortgage amount. by the amount of the projected monthly energy savings. -
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0 votes Thank Flag Link Sun Aug 26, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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I can't tell you what the credit score threshold is, but I can tell you you can increase an average or high credit score dramatically in as little as 60 days. If you have bad credit (which is different than NO credit which also results in a low score) it will take a longer time to increase it.

Just about everything under the sun is taken into account when qualifying for a mortgage, especially these days. You don't need to pay an application fee to get all of those questions answered from a bank. Take your taxes and pay stub to your bank and ask them to help you.

The best way to increase your credit score is to eliminate any errors on your report. You can do this for free online at: https://www.annualcreditreport.com/cra/index.jsp
One of the things that can DECREASE your credit score is having a bank, credit card company, car dealer, or other lenders "hit" your credit report.

Start with these and come back with more questions.
Ruth
Web Reference: http://www.oak-park-il.com
0 votes Thank Flag Link Sun Aug 26, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
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