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May 2010
What are mortgage lenders looking for?
Today, I’d like to tell you what mortgage lenders look for in when deciding on granting your request for a new mortgage loan. Now this is not meant to be an underwriting class but a basic understanding of the process and what you’ll want to consider as you begin thinking about buying a new home. When you’re looking for a new mortgage many lenders evaluate your credit based on the “Three C’s.” Credit Is it likely that you will repay the loan? Are your payments on time and up-to-date? Are you financially stable and reliable? What are your credit scores? Today’s marketplace, most conventional lenders require your scores to be in the 700+ range and most FHA loans a 620 score or higher. Capacity Are you able to pay the loan? What kind of outstanding personal debt do you have? Do you have enough earning power and net worth to repay a mortgage or home equity line of credit? […]
FICO's Toy Model Scoring System
Is there anyway to understand the FICO scoring system? That is the hundred dollar question! The FICO score created by the Fair Isaac Company is one of the most shall I say “guarded” secrets at the credit bureau’s. So much so that even senior executives under oath, have sworn they do not fully understand the exact reason for score movements under certain circumstances. I mean why does one persons credit score who is at 750 drop 15 points with one 30 day late on a charge card and other person’s whose score is at 650 drop 50 points with that same 30 day late? No other derogatory is reported yet Mr 650 had three times the point deterioration than Ms 750! Fair? Well, the truth is that there are so many factors that have been put into this system that the average persons head will spin (even the not so average) like a top trying to figure it out! […]
How is your mortgage affected by a bankruptcy?
Many people are concerned how their mortgage loan is affected if forced into a bankruptcy and when someone experiences financial crisis like job loss, medical crisis or business failure, it can become quite difficult for them to repay all of their existing loans or debts. Filing bankruptcy may seem to be a viable option in order to get rid of these debts, but you should know it may become difficult to qualify for a new mortgage. At least right away. You should also know that your existing mortgage gets affected when you file bankruptcy. What happens to your existing mortgage after bankruptcy filing? When you need to declare bankruptcy, you usually will want to file either chapter 7 or chapter 13. However, the consequences of filing chapter 7 are different from that of chapter 13. The effects on your existing mortgage after filing bankruptcy are discussed below. […]
The National Credit Federation Blog is officially ALIVE!
Well it is official! The National Credit Federation Blog is alive and off to the races!!! The intent or shall I say content of this blog is to inform and assist the reader in all things that involve credit, credit scores, and overall the trials and tribulations as well as the satisfaction realized in working [...]