Your Credit Score - The Basics

These days more than ever your credit score is key to not only having access to better loan programs but the score will determine how much you pay in rate and fees. There have been many changes in recent years and Fannie and Freddie have instituted risk based pricing which may impact you if your score is below 740. So it pays to keep your score in good shape.


So how do you do that and what are some of the tricks that can help you maintain a good score?

Paperwork - Should Borrowers Take a Stance?

So how much paperwork do you need to give a lender these days to get a loan? Not that much really, but many people in the market today appear to be uncomfortable with providing much, if any documentation to a lender that is trying to determine if they can safely lend these folks a couple of hundred thousand bucks. In fact, I have encountered an increasing number that simply draw a line in the sand and dictate what paperwork they are willing to part with.


So how did this situation develop and why are these folks playing hardball? And the better question is; should they?

HUD Keeps FHA Changes Small - Perserves a Great Program

The FHA loan program has been a boon to buyers of all types, from first timers on up. It has been a staple in the current market allowing for small down payments, gift money for the down, lower credit scores and not requiring much money in the bank.

Not long ago it was announced that HUD was tightening up guidelines for the FHA product and they discussed increasing the insurance payment, the down payment, raising credit score requirements and increasing the monthly MI cost to the borrower. This was all because the FHA program has become the defacto sub-prime loan in the industry and HUD was losing lots o’ money in the current economic melt-down.

Well this was big news to all of us and pretty scary since much of the loan activity in the past couple of years have been through FHA. The changes that HUD was hinting at could have been devastating.

The good news is that while HUD did increase the up- front MI premium, from 1.75% to 2.25%, they have decided to leave the rest alone. This is HUGE!

Participate in Your Loan

There was a time not so long ago that the loan process was fast and easy. You met with your loan officer, talked for a few minutes, maybe signed a disclosure or two and the next time you had to be involved with your loan was when you went to the escrow company to sign your loan documents. Yes….…those were the days.

Unfortunately, all of that is behind us now. Massive regulatory changes to the industry have made the process more complex and the tightening of lending guidelines requires borrowers to part with far more information than ever before. Expect to have to provide copies of your tax returns, pay-stubs and bank statements as well as any statements covering your investments.