In a nut shell the three things we would like buyers to know understand and have ready to document is their credit, income and current debt status. Borrower should know that they can legally check their scores free once per year - Freecreditreport.com although this isn't the report we will use for them and the scores will not be accurate, it does give them an idea of what their credit history looks like and an opportunity to start getting erroneous info removed. Number 2 is income, borrower should have their paystubs, w-2's and tax return ready to discuss with their loan officer, it helps cut down a lot of time and makes qualifying a lot easier when borrowers understand what their income actually is. Finally, borrowers need to understand their debt levels. Current lending standards will only allow us to approve borrowers with a max 55% DEBT TO INCOME RATIO. Which means no more then 55% of their gross income can be allocated toward revolving, installment or mortgage debt.
I don't ask that borrowers know how to run these numbers or be able to qualify themselves, but a basic understanding of their own financial picture helps. The minimum they can do is have their info ready when they call. Hope that helps!... more
Were you current on your mortgage the entire time?
Often when an account is closed it can hurt your scores, usually it's just a few points, maybe even a dozen, but 100 points is very severe. If there aren't many other accounts on your credit report then closing an account tends to have a bigger negative impact on your score.... more
There are still some loans out there with 0%. Va Loans, USDA and some community programs.
If you go to the USDA site it provides the eligibility areas and qualifications,
I hope this helped you.... more