Tag Archive for: credit scores

When Debt Is a VERY GOOD Thing! (& Why We Love Tradelines)

We often have clients who come to us looking for their first home, very proud that they’ve “never had an ounce of debt” in their “entire life.” No credit cards, no car loan, not a dollar financed – ever. These poor people are then shocked to find out that they can’t finance their first home […]Read More

What Credit Score Is Needed To Refinance A House?

What Credit Score Do You Need To Refinance? Many borrowers want to know what credit score they need to refinance. Credit scores play a significant role in determining what mortgage rate you qualify for when refinancing. There is no “one interest rate” that lenders quote each day because of the many factors that affect individual […]Read More

5 Key Credit Reminders & Misconceptions; Albert Einstein On Interest Rates!

Albert Einstein On Predicting Interest Rates (true story) When Einstein died and went to heaven, the doorman told him his room was not ready, and that he had to wait in a dormitory with others. So, he was led to a dorm and introduced to his roommates. The doorman said, “Here is your first roommate. […]Read More

Rapid Re-Scores; We Can’t Charge Borrowers

RAPID RE-SCORES We often do a “rapid re-score” to repair a borrower’s credit for a variety of reasons: (1) to raise a borrower’s score above a minimum requirement, such as 700 for a HELOC or for Jumbo financing (more important than ever in this post-COVID lending environment); (2) to improve a borrower’s interest rate, as […]Read More

Is 751 A Good Credit Score?

“What is a good credit score to buy a house?” “Is 715 a good credit score? Credit scores are often at the top of every prospective homebuyer’s mind when they begin their house hunt. Mortgage lenders pull credit scores for homebuyers from three major bureaus: Transunion, Equifax, and Experian. When lenders pull credit, they correlate […]Read More

5 Key Credit Reminders & Misconceptions

#1 – Consumer credit scores are not the same as mortgage credit scores. Borrowers often share their credit scores with us, as if those scores are set in stone. Those scores, however, are often generated by online “consumer” oriented scoring models that are much less stringent than the scoring models mortgage lenders employ. As a […]Read More

Why Interest Rate Might Be Higher at Contract Time Than at Pre-Approval Time; Not a “Bait & Switch” :)

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Why Perfect Credit Scores Don’t Matter

200 MILLION AMERICANS NOW HAVE FICO SCORES About 200 million Americans now have FICO Scores, and about 3 million have perfect scores of 850, according to this Bloomberg article:  “How More Americans Are Getting a Perfect Credit Score.” America may be approaching “peak credit score” with average scores now above where they were at the […]Read More

Cracking the Perfect Credit Score? Don’t Bother…

200 MILLION AMERICANS NOW HAVE FICO SCORES About 200 million Americans now have FICO Scores, and about 3 million have perfect scores of 850, according to this Bloomberg article – “How More Americans Are Getting a Perfect Credit Score.” America may be approaching “peak credit score” with average scores now above where they were at […]Read More

Some Rate Reminders for California Borrowers

  Rates are a hot topic for California borrowers. Everyone wants to get the best mortgage rate possible when they’re getting ready to take out a loan for their home purchase. Here a few helpful reminders to keep in mind about mortgage rates in California: California rates will vary depending on the loan type. There […]Read More

Buyers Don’t Need a ‘Perfect’ Credit Score to Get a Loan in California

Buyers in don’t need a perfect credit score to get a loan in California. Having a high credit score can help buyers secure a loan with a lower interest rate. However, today’s loans have more forgiving guidelines when it comes to a buyer’s credit, which is especially true with government-funded loans. Where Is The Credit […]Read More

The New Millennial Housing Market

Millennial buyers made up 34% of the housing market in 2017. Millennial buyers were the largest group that year in the housing market, with 66% of them being first-time buyers. That means nearly half of all millennial buyers are already in the housing game and have bought and sold more than one property. Those who […]Read More

Six Factors That Can Impact Your Mortgage Rate in California

Every borrower wants to get the lowest mortgage rate when applying for a mortgage loan. JVM is proud to offer our buyers some of the lowest rates in the industry. But, few buyers are aware of the many different factors that could affect the mortgage rate they are given in California. Here are six factors […]Read More

When Character Doesn’t Count – Lending in 2017

There may be murderers and bank robbers with 800 credit scores who are eligible for the best mortgage financing available. This is b/c financing is available for anyone who can manage his/her credit and income, irrespective of his/her underlying character. This occurred to me for a couple reasons. First, there was an article in the […]Read More

Our Interest Rates vs. The Other Guys’ Rates; Rate Comparisons

I wrote Monday about the debacle Heejin and I endured after we chased interest rates in Texas (the bank lost our file for 17 days). Interestingly, the bank is now trying to save the deal and won’t take “no” for an answer, but we know there is no way it can perform in time. I […]Read More

Consumer Credit Scores Are Different From Mortgage Credit Scores

As we explain from time to time, most mortgage lenders pull credit scores from the three major bureaus (Transunion, Equifax and Experian) and they correlate to the middle of the three scores. If there are two borrowers, lenders usually correlate to whichever borrower has the lower middle score, often frustrating borrowers with especially good credit. […]Read More

Multiple Credit Inquiries; New Home Checklist; Doormat

Borrowers often come to us from other lenders and are overly concerned about credit inquires. Two reminders: (1) Multiple inquiries from mortgage lenders within a 30 day period only count as one inquiry; and (2) for borrowers with good credit, inquiries only have a very marginal effect on a credit score even if they are […]Read More

Credit Info to Know; Mortgage 101 Seminar on Tues, Oct 25th

Here is some credit information everyone in real estate should know. Mortgage companies pull credit from three bureaus and correlate to the middle of the three scores. For multiple borrowers, lenders always correlate to the borrower with the lowest middle score. Mortgage credit scores are usually lower than consumer credit scores (found online) b/c mortgage […]Read More

Comparing Rates Among Lenders – Factors, Considerations, Yelp

Sometimes other lenders (usually big banks) buy the market and quote very low rates. But, more often than not, many loan officers misquote rates b/c they do not have all of the necessary information, and they are trying to lure in borrowers any way they can.** This is why we now request rate-quotes in writing […]Read More

What If Spouse Has Horrible Credit?

We frequently get husband/wife borrowers where one spouse has stellar credit and the other has awful credit. Most people know that the solution is simply to do the loan in the name of the “good-credit-spouse” only, as long as the good-credit-spouse has sufficient income to qualify on his or her own. The bad-credit-spouse can do […]Read More

Credit Score Under 700 And Less Than 20% Down – FHA’s Better Deal

We have a borrower with a 670 credit score and 5% down payment who is comparing interest rates on the web, and getting severely misled. Borrowers often do not understand how significantly low credit scores affect interest rates with conventional financing. For borrowers with less than 20% down and lower credit scores (under 700, and […]Read More

“80/10/10” HELOC Lender Now Requires 720 FICO In CA Only

Our Home Equity Line Of Credit (HELOC) Lender, that offers the “10%” second mortgages in conjunction with “80/10/10” financing, increased its minimum FICO from 700 to 720. This applies to California only. This means that borrowers with limited down payment funds (less than 20%) will either have to take a single loan with Private Mortgage […]Read More

“Inquiries On Credit Reports” Much Ado About Nothing?

We have many borrowers who are probably overly-concerned about Credit Inquiries from mortgage companies. Mortgage credit inquiries affect credit scores much less than most people realize. The better one’s credit and credit scores are, the fewer inquiries affect a score. The effect can be anywhere from 1 to 5 points. All mortgage credit inquiries within […]Read More

Loans/Rates Not a Commodity; Vary by Source, FICO, LTV, Loan Amount

Loans and Rates are not commodities. We reiterate this b/c so many borrowers ask us what “the” rate is. Or, they demand that we match an advertised rate they find on the internet or at a bank, when their loan is significantly different than what is getting advertised. Many things affect interest rates including Credit […]Read More

Property Type and Fico Score Can Significantly Affect Rate

We recently had a borrower request a verbal rate estimate after telling us her credit was perfect and that she was buying a townhouse/PUD. We estimated her “no points” rate at 3.875%, assuming her credit score was above 740. Her credit score was actually 718, and she was buying a condominium. The combination of these […]Read More

Don’t Pay Credit Cards Down to Zero Balance IF You Want High Scores

We recently had wealthy borrowers who needed a higher credit score to qualify for the financing they desired. Hence, we told them we were going to assist with a rapid re-score; we asked them to pay down a credit card balance to a very specific amount that our credit-software said would maximize their credit score. […]Read More

The Case For FHA: Lower MI; Good for Low Credit Scores; Fast Closing

We are making the case for FHA once again now that MI is so much lower (down to 0.85% from 1.35%). FHA interest rates are much lower than conventional rates, often over 1/2 percent lower. FHA rates are especially competitive for borrowers with low credit scores. It is a myth that FHA properties need to […]Read More

Don’t Close Out Credit Accounts or Trade Lines – Hurts Scores

We had a borrower yesterday who made $600,000 per year and he had almost no consumer debt or late payments…and his credit score was too low to get the Home Equity Line of Credit he desired. This stellar borrower’s score was too low b/c he closed out all of his credit cards and trade lines […]Read More

Do Not Close Out Credit Cards; Just Pay Them Down

We recently pulled credit for a borrower (a Realtor no less) who had closed out all of his credit cards as part of his effort to clean up his credit and live a debt-free lifestyle. He is now probably six months to a year away from buying a home b/c having no credit cards not […]Read More

Don’t Close Out Credit Cards; Open Accounts = Higher Scores

We recently pulled credit for a highly responsible borrower who makes great money, has no debt and pays cash for everything. The issue? He closed out all of his credit accounts, and cannot qualify for mortgage financing. Lenders require at least two to three “open” trade-lines or accounts on a credit report. Trade-lines include credit […]Read More