Posts Tagged: ‘Credit’

Don’t Let Your Credit Cost You Money

July 2, 2012 Posted by Andre Hemmersbach

I Want The Top Ten FICO Drivers

New Credit Requirements

February 16, 2011 Posted by Andre Hemmersbach

A recent change by Fannie Mae, the agency who purchases 90 of conventional fixed rates, has just made it even more important for you to work with an experienced loan officer very early in the “shopping for a home” phase. These recent changes make it more expensive to get a home loan unless you have a perfect credit score. Formerly a FICO score, a measure of your credit worthiness invented by the Fair Isaac Corporation, of more than 720 would get you the best rates. As of February 3, 2011 a FICO score of 735 on a sales price of $350,000 with a 10% down payment would cost you $1600.00 more in closing costs or $74.00 more per month in a higher mortgage payment. The increases get even more drastic if your credit score is lower. For instance a 670 FICO would cost you $5513 more in closing costs and $148 more in monthly payments. These increases are substantial for most home buyers!
To help resolve the issue of over paying for your home loan, get with an experienced loan officer 90 to 120 days before shopping for a home. During this time corrections can be made to erroneous credit blemishes and reporting. Sometimes it can be as little as moving 20% of a credit card balance to an empty credit card that can raise your score enough to put you over a pricing benchmark.
Most recently we helped a customer who we saved over $2600 in extra closing costs by opening a credit card and having him charge a $12.00 purchase and pay it off. His credit score jumped 5 points moving him from 739 to 744, or 4 points above the 740 cut off for additional pricing.
If I can be of assistance to you in your lending needs please call me.