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| Summary
Information (note) |
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loans that do not meet the credit requirements
of Fannie Mae and Freddie Mac are referred
to as B, C and D paper loans. |
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who have filed for bankruptcy, foreclosure
and who generally have bad credit. |
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until the applicant can qualify for conforming "A"
loans. The interest rate on B/C loans
varies, but are generally higher than
conforming "A" loans. |
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however, you are not guaranteed
approval. Each lender has their own
criteria on approving applicants with
less-than-good credit. |
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some applicants may choose to
wait before submitting their mortgage
application — this gives them time
to clean up their credit report
click below for information |
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in our network that can
assist you on your mortgage application.
But first, check your credit report
to correct any errors that can affect
your credit rating: see
below |
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Apply
Online: get up to four rate quotes |
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These are for individuals who don't
have perfect "A" credit
but are working to clean up their
report. These conforming "A-"
loans carry competitive interest rates
that are lower than B, C and D paper.
View
Freddie Mac program
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Keeping
Your Credit Report Clean
For a complete review on credit reports
and maintaining a strong credit rating,
visit our credit management center: click
here
The report lists any payment delinquencies
that you may have had over the past three
years.
The report can be a factor in a lending
institution's decision to approve or decline
your mortgage application. You should
review your credit report for any errors
before applying for a mortgage.
Allow yourself about 2-3 months prior
to the loan application for correcting
of any errors that may be on your report.
more information below
There are three major credit bureaus that
maintains your credit information. A lending
institution may use all three bureaus
for credit reviews; therefore, you may
want to review your credit report from
each.
There may be a charge or other related
paid-for service to obtain your credit
report.
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While information
regarding your credit habits for the last
three years appears on your credit report, no adverse credit information,
with the exception for bankruptcy, may
be kept on file for more than seven years.
In reviewing your application, lending
institutions review the following information
listed in your report to determine your
creditworthiness:
- Your current outstanding debt
- Places and the number of times you
have applied for credit
- The kind of credit you have taken
out in the past
- Late payments
- Over extension of your credit lines
- Liens
- Garnishments
- Bankruptcy
While there may be some advantages for
being a cash-only buyer, it will not establish
a credit history that the lending institution
can review.
Cash-only buyers can build a good credit
risk by charging small ticket items on
their credit card and paying the minimum
payment due or the entire credit card
balance each month.
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The credit score estimates your ability
to repay a loan as evidenced by your credit
history. A lender will sometimes give
you a better mortgage rate based on a
good credit report.
Further, a lending institution is less
likely to be concerned over an occasional
late mortgage payment if you have a good
credit report rather than a fair credit
report.
Establishing a good credit report can
payoff in lower rates and better mortgage
management. For more information:
We can help. Get free, non-profit, 100% online debt relief.
Click here for more info
Visit the National Foundation for Credit Counseling:
http://www.debtadvice.org/
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