Helena Miguel Sergio asked:




Have you found out why lenders find it difficult to approve your mortgage loan requests? Is it because they never were in good spirit when you filed in your application or they just do not like your face? Do you think your application for a mortgage loan never got to the right person? Sure, you will get frustrated after applying to more than three lenders and they all turn you down almost indiscriminately. But wait a minute, everyone could not possibly be wrong at the same time. While it might appear that luck does not seem to be on your side there is yet some information you need so you can foster luck on yourself. Before you conclude that certain things are not meant for certain people please read this article carefully.

The challenge of getting your dream mortgage lender is as huge as you can ever imagine. Other things being equal, it is almost impossible for a borrower with a drifting credit statement to get a mortgage. It does not matter how many applications you have made to different lender. Chances are that you will end up with no approval. Do not forget that no one desires to do business with anyone considered as a failure. Therefore if you intend getting a mortgage and you have bad credit report be aware that your lender sees you as a failure to business. A good number of frustrated borrowers failed in their attempts to secure a mortgage because of this.

Your lender does not want to grant you a mortgage because you look pitiful enough or need a home so bad. Realize that your lender is running a business. It is only normal to think that business oriented people want to carry on transactions with people of high sense of responsibility and credibility, and if your credit status is bad you do not appear to have these qualities as far as your lender is concerned.

What does your past say with regards to credit history? Take a look at your credit information and ask yourself these questions:

1. Does my report have the potential to convince my lender about my credibility?
2. With my current credit statement can I afford the interest rates?

When you have sincerely provided answers to the questions above, you would have discovered whether or not you need to wipe up your credit history. The truth remains that those who have demonstrated their ability in maintaining a credible credit report over time appear to have ‘luck’ with getting their dream mortgages. That’s the secret. With low credit scores, mistakes and so many delayed payments on your account, I’m sorry but you may not have ‘luck’ shine on you. Your application might risk not being approved.

So put your ‘house’ in order before going to get a mortgage – in other words ensure your credit statement has no doubtful issues. Prompt payment of bills and being very careful not to exceed your total credit limit can have a positive impact on your report. When next you seek for a mortgage please take a good look at your credit history for that might be your only hope to getting it done.

Cheers!

Jon

Daren Ross asked:




Banks, mortgage bankers and other mortgage lenders offering conventional mortgage programs consider a prospective borrower’s credit report among the more important factors in approving the prospective borrower for a specific mortgage program. The credit report shows the borrower’s current credit situation and credit history that the mortgage lender uses as one of the factors to determine the prospective borrower’s eligibility for a mortgage, interest rate, and the loan amount offered relative to the property value.

Mortgage lenders consider the mortgage score in approving a potential borrower. Mortgage lenders could potentially require a minimum credit score such as a score equal to or greater than 620. Mortgage lenders could potentially offer more attractive programs and interest rates to prospective borrowers with higher credit scores and other favorable factors considered by the mortgage lender.

Borrowers could potentially be eligible for mortgage programs that require less equity if their credit scores are higher. A borrower could potentially qualify for a conventional mortgage with a loan to value equal to or between 80% and 90% with a credit score equal to or greater than 720. A credit score equal to or greater than 700 with a loan to value equal to or less than 60% could potentially help the lender provide a better interest rate to a prospective borrower for a given mortgage program.

In addition to the credit score, the lender considers other aspects of the credit report. A potential borrower with one or more late payments in their recent past may not be eligible for mortgage programs with certain lenders. The lender who considers offering a mortgage to a first time home buyer may place additional emphasis on the amount of, the credit limits on, the open dates for, and the payment history involving trade lines. Any government lien notated on the credit report may be required by the lender to be satisfied and/or paid prior to the lender funding the mortgage.

Credit reports could impact a borrower’s ability to obtain a mortgage or some of the favorable terms and programs offered to stronger candidates. Some prospective borrowers participate in credit monitoring programs that keep the participant aware of any changes to the credit report. Prospective borrowers could also work with a mortgage broker or credit repair specialist to better understand their credit situation. A mortgage broker or credit repair specialist may be able to offer actions to the borrower that could potentially improve the prospective borrower’s credit score or report.

Jay

Maria Faith asked:




Dreaming big during the economic recession is not a sin. You could still get the house you have always wanted or the car you have been dreaming about despite the current weakness of the economy. However, if you also have a tight budget like most people, the only way to achieve your dreams is to apply for loans and mortgages. A car loan would make it easier for you to get that Ferrari you have been dying to have, and a mortgage could assist you in getting the keys to your new home sweet home.

However, you would never get these loans if you have bad credit scores. Lenders would not approve your applications for loans if you do not have satisfactory credit scores. If you want to fix your bad credit as soon as possible, you should read this article and try some of the suggestions in it.

Get copies of your credit reports

The first step in fixing your credit scores is to get copies of your credit reports. You could either get your free credit report or pay for an additional copy. You could visit a credit bureau that is nearest to your home. Ask them the process of pulling out credit reports and secure your copy for future reference.

Repay your outstanding debts

After getting your credit report, you should review it closely and come up with a definite strategy. Highlight all your outstanding debts and prioritize them over your other debts. Your outstanding loans have higher interest rates, which make them grow faster than your other debts. This is the only way to slow down the increase of your loan values.

Once you have repaid your outstanding loans, you could already start paying your other loans little by little. There is no need push yourself too far by paying all your debts all at the same time.

Pay your bills on time

Your manner of paying utility bills is also reflected in your credit reports. The best way to improve your credit score is to make sure that you are always paying your bills on time. Your lenders would also feel impresses once they see that you never make a late payment. This could reflect your ability to juggle all your financial obligations without sacrificing any of your fiscal responsibilities.

Do not close your previous accounts

People who panic once they see their bad credit usually think that closing their credit accounts could make things better. However, you should not do the same thing because closing your credit accounts would actually lower your scores further. Instead of closing your accounts, just make sure that you could pay for all your revolving debt over a specific timeframe.

Change your spending habits

The last way to improve your credit scores is to change your spending habits. Use your credit card wisely and avoid any kind of buying on impulse. Do not max out any of your accounts in order to steer away from any risk of default or bankruptcy.

These are the easiest and most effective ways to improve your credit scores. Start addressing your bad credit today and do not wait until you have already reached bankruptcy or default.

Barry