Credit

The very first step on qualifying a mortgage loan applicant is initially have a phone interview. Buying a home is the largest investment for most hard-working people and consumers may think everything can be done online without any human contact. Many steps in the mortgage process can be done via electronic communication by email or text. However, the most important step in the mortgage process is the initial phone interview between the MLO and the borrower. We will cover the phone interview more in depth and detail on a later module. In this thread, I like to limit the topic of soft versus hard credit pull and how the qualifying credit score for a mortgage is determined. Unless the borrower needs to get qualified and pre-approved NOW and right NOW, I normally will do a soft credit pull. Initially, my loan officers and I normally do a single bureau soft pull. A soft pull will not show on your credit report as a credit inquiry and it will not drop your credit scores. From there, the mortgage loan applicant and I will go over the credit tradelines on the credit report. Things I look out for is credit disputes, credit utilization ratio, potential score improvements, errors in credit report, and prepare to maximize the borrower’s credit scores to get the best rate and terms on the mortgage loan. Once the mortgage loan applicant is credit and income ready and is ready to go shopping for a home, I then run a tri-merge credit report. Lenders use the middle credit score of a tri-merge credit report to determine the qualifying credit score for a mortgage. Please read the attached guide on tri-merge credit report to determine mortgage credit score:

Tri-Merge Credit Report to Determine Mortgage Credit Score

Good afternoon, folks. Gustan asked me to explain about Credit, Credit Scores, Credit Payment History, and The Importance of Credit when you are originating a loan. Credit is, hands down, one of the most, if not the most important factor when you are qualifying and pre-approving a mortgage loan applicant. There is no uniform credit score and credit history that is set on getting approved for a mortgage. Every mortgage loan program has its own credit score guidelines and requirements, as well as specific credit requirements.

For example, let’s go over some case scenarios:

• HUD, the parent of FHA loans, requires a minimum of a 580-credit score for a borrower to qualify for a 3.5% down payment home purchase FHA loan.
• Borrowers with credit scores under 580 and down to 500 FICO are eligible to qualify and get approved for an FHA loan.
• However, per HUD guidelines, anyone with credit scores under 580 credit scores require a 10% down payment vs a 3.5% down payment. Fannie Mae and Freddie Mac require a 620-credit score for borrowers on conventional loans.
• The Department of Veterans Affairs has no minimum credit score requirements on VA loans.
• However, most lenders have lender overlays (WE WILL COVER LENDER OVERLAYS ON A SEPARATE MODULE ON MLO TRAINING e-Learning Module).
• Lender overlays are mortgage requirements set by individual lenders that is above and beyond the minimum agency mortgage guidelines of HUD, VA, USDA, Fannie Mae, and Freddie Mac.
• Non-QM loans, jumbo loans, and alternative lending options are portfolio loans, and the minimum credit score requirements is created and set by its individual lenders.

How Is Credit Pulled by Mortgage Lenders and How is the Qualifying Credit Score for a Mortgage Determined Credit Scores Determine the Following: All mortgage lenders of government-backed and conventional loans pulls a tri-merger credit report. A tri-merger credit report is when a credit reporting service such as Credit Plus, Advantage Credit, or CIC pulls a credit report from Equifax, Transunion, and Experian simultaneously. Each credit bureau has its own credit score for the mortgage loan applicant. The lender is required to use the middle credit score as the qualifying credit score. Tri-merger credit reports and its credit scores are good for 120 days from the date it was initially pulled. If the mortgage process lasts longer than 120 days, the mortgage loan originator is required to re-pull a new tri-merger credit report because the initial tri-merger credit report is null and void. There are times where MLOs will re-pull a tri-merger credit report before the 120 day expiration date during the mortgage process if the MLO is confident the borrower’s credit scores has gone up. The reason they do a hard-inquiry tri-merger repull is because the MLO is hoping for a higher credit score where it benetits the borrower with a lower rate. This is normally done before the loan officer locks the mortgage rate.

• Credit scores determine whether or not borrowers qualify for a mortgage loan program
• Credit scores determine pricing on mortgage rates
• Credit scores determine pricing on private mortgage insurance on conventional loans

Credit Reports Determine the Following:

• The borrower’s credit payment history is stated on credit reports (current, 30, 60, 90, 120 days late).
• Derogatory credit tradelines such as late payments, accounts in collections, account that has been charged off, repossession, and other derogatory credit payment history and status.

Public Records:

• Any public records will appear on credit reports.

Example of Public Records Include the Following:

• Type of bankruptcy, housing event (foreclosure, deed-in-lieu of foreclosure, short-sale, forbearance)
• Judgments
• Tax lien
• Other public records

National Third-Party Public Records Search

• All mortgage lenders does a national third-party public records search during the mortgage process.
• Any public records that is not reflected on the consumer credit reports needs to get disclosed by the mortgage loan applicant because it will get discovered.
• Not disclosing it to the MLO and/or lender can cause delays in the mortgage process or can cause a last-minute mortgage loan denial.

The borrower’s personal and personal information is posted on credit reports.

The mortgage loan applicant’s full name, legal name, AKAs, DOB, current and previous addresses, current and previous employers.

The mortgage loan applicant’s full name, legal name, AKAs, DOB, current and previous addresses, current and previous employers.

List of Credit Tradelines

• which are creditors and includes type of credit such as auto, mortgage, installment account or revolving account
• date opened, payment history
• date of last activity
• amount borrowed and loan
• credit limit, balance
• late payment history, current standing

Credit Disputes on Derogatory Credit Tradelines

You will also find derogatory credit tradelines that is being dispute with the verbiage consumer disputes this credit tradeline. Credit disputes are not allowed on the following types of credit tradelines:

• Derogatory credit tradelines such as late payments
• Non-medical collection accounts
• Charged-off accounts
• Public records such as bankruptcy, foreclosure, deed-in-lieu of foreclosure, and short-sale
• Judgments
• Tax-liens

Credit Disputes are Allowed on the Following Types of Credit Tradelines

• Medical collection accounts
• The sum of all non-medical collection accounts with the aggregate outstanding balance that is less than $1,000 dollars.
• Non-medical collection accounts with zero balance, which means the non-medical collection account has been paid off.
• Non-medical collection accounts and credit tradelines has seasoned longer than 24 months (Be careful on this exemption and check with the underwriter of the wholesale lender because many lenders will still require you remove all credit disputes.

Why Credit Disputes Are Not Allowed By Mortgage Lenders

The main reason why credit disputes are not allowed during the mortgage process is because of the following:

• Whenever a consumer initiates a credit dispute on a derogatory credit tradelines, the algorithm on the credit scoring system of Experian, Equifax, and Transunion automatically discounts the disputed credit tradeline from its credit scoring model.
• What this means is that each of the three credit bureaus will discount and NOT count the derogatory credit tradeline from the consumer’s credit scores.
• Since the derogatory credit tradeline is not counted on the overall consumer credit score, the consumer credit scores will increase.
• Every credit dispute on derogatory credit tradelines will trigger a higher credit score.
• Therefore, under the lender’s point of view, a credit report with credit disputes renders an inaccurate credit score.
• On the flipside, if you do a credit dispute on medical collections and/or exempt credit tradelines, you can increase your credit scores and get away with it.

Bi-Merge vs. Tri-Merge Credit Report – Advantage Credit

advcredit.com

Bi-Merge vs. Tri-Merge Credit Report – Advantage Credit

Bi-Merge vs. Tri-Merge Credit Report – Advantage Credit

The easiest and fastest way of re-establishing credit and boost your credit scores is to add new credit. You do not have to hire a credit repair company and pay high dollars for credit repair. In many instances, credit repair does more damage than good. Let’s go over a few case scenarios:

1. You do not have to pay outstanding collections and charge off accounts to qualify and get approved for a mortgage.

2. You CANNOT have credit disputes on non-Medical collections, charge-off accounts, late payments, and other derogatory credit tradelines during the mortgage process.

3. You need to remove all non-medical collection and charge off credit disputes as well all other credit disputes on derogatory credit tradelines.

4. Example of derogatory credit tradelines include late payments, repossession, bankruptcy, foreclosure, deed-in-lieu of foreclosure, short-sale, judgments, tax-liens, child support and alimony default, and other public records.

5. Medical collection accounts, collection accounts with zero balance, and if the sum of all outstanding collection accounts are under $1,000, credit disputes are exempt.

9. Credit disputes that are older with credit tradelines that are older than 24 months are exempt from removing the dispute. However, many lenders will have lender overlays that no matter how old the date of last activity is, all credit disputes need to be removed.

What is Behind Why Lenders Do Not Allow Credit Disputes:

The reason why mortgage lenders do not allow credit disputes during the morgage process is because when a consumer disputes a derogatory credit item, the credit scoring algorithm system automatically triggers the derogatory credit item to be non-existent. What this means is that the credit scoring system negates the derogatory credit item from the credit scoring model and therefore the derogatory item is temporarily not used to derive to the credit score. This enables the credit score to go up. When you retract the credit dispute, the algorithm from the credit bureaus factors the derogatory credit tradeline back into the credit scoring model thus the credit score will go down.

Attached are some popular guides that may help you understand the above content more in detail:

https://gustancho.com/how-credit-disputes-affect-mortgage-process/

gustancho.com

How Credit Disputes Affect Mortgage Process

How Credit Disputes Affect Mortgage Process: You cannot have credit disputes during the mortgage process. Retracting disputes will lower scores.

Re-Establishing Credit for Mortgage Approval Without Relying on Credit Repair Companies

Most Applicants Do Not Need to Pay for Credit Repair to Qualify for a Mortgage

• A common misconception among borrowers is the belief that hiring a credit repair service is required before obtaining a mortgage.
• This assumption is not universally accurate.
• In reality, re-establishing credit over time can be straightforward:

Pay All Bills On Time For One Year

Mortgage lenders primarily focus on recent credit history. Previous credit issues typically do not prevent mortgage approval if credit has been re-established and payments have been made on time.

These payments can include any of the following:

• Credit card payments
• Auto payments
• School loan payments
• All other types of loan payments
• Mortgage and rent payments
• Utility payments and any other type of credit, if applicable

If housing and installment debt payments have been made on time during the required review period for manually underwritten FHA loans, the U.S. Department of Housing and Urban Development (HUD) permits underwriters to consider the borrower’s payment history acceptable.

Paying Off Old Collections Or Charge-Offs Shouldn’t Be Your First Move

Many individuals believe that outstanding collections will prevent mortgage approval and that old debts must be repaid prior to applying. This belief is incorrect.

Paying old collections updates the account’s activity date, which can temporarily lower the credit score. Additionally, funds needed for the down payment, closing costs, or reserves may be diverted to pay these collections.

It is generally advisable to leave old collections unchanged and seek guidance from a mortgage loan officer.

In most situations, old collections and charge-offs do not need to be repaid prior to applying for a mortgage.

Exceptions exist depending on the loan program, property type, Automated Underwriting System (AUS) findings, and underwriter requirements. For instance, certain property types such as two- to four-unit properties, second homes, and investment properties are subject to specific provisions in the Fannie Mae Collection and Charge-Off Policy.

The Recent Payment is What Matters Most

While previous credit issues are not ideal, recent late payments are viewed more negatively by lenders.

Underwriters require evidence that the borrower has achieved financial stability and is currently making timely payments.

The Last 12 Months are Most Important

The primary objective should be to avoid any new late payments prior to applying for a mortgage.

This means:

• Don’t miss credit card payments.
• Don’t miss auto loan payments.
• Don’t miss student loan payments.
• Avoid overdrafting bank accounts.
• Refrain from opening new credit accounts.
• Do not dispute negative credit reports without professional guidance.
• Consult a mortgage professional before paying off old collections.

Fannie Mae specifies that lenders evaluate a borrower’s credit history by considering the current status of accounts, payment timeliness, and the frequency, recency, and severity of delinquencies.

Old Late Payments And Repossessions Are Not Deal Killers

A late payment or repossession does not automatically disqualify an applicant from mortgage eligibility.

It is necessary to provide additional context and information to complete the credit profile.

Underwriters Will Look At:

• How recent late payments were,
• If the borrower has made on-time payments since the late payments,
• If the borrower has rebuilt credit,
• If the borrower has consistent income,
• If the borrower has sufficient funds to cover closing costs,
• If the borrower has funds to receive automated underwriting approval, and
• If the borrower’s file needs to be manually underwritten.
• The most recent twelve months of credit history are viewed more favorably when the applicant meets the aforementioned requirements.

Best Ways to Re-Establish Credit for Mortgage Approval

Consider Opening a New Credit Account. If insufficient credit history exists, opening new accounts may be necessary.

Responsible use of a secured credit card can assist in building credit.Limit

Credit Card Balances

Maintaining low credit card balances relative to the credit limit is advisable, as high balances can reduce credit scores. Paying balances in full does not negatively impact scores.

Schedule To Make Payments Before The Due Date

A late payment within the twelve months preceding a mortgage application can have a significant negative impact on an account.

Do Not Close Old Credit Cards

Closing older credit accounts can negatively affect credit scores, as these accounts contribute positively to credit history.

Seek Guidance Before Paying Collections

Some collections may not require payment, while others might. It is advisable to seek mortgage approval before addressing outstanding collections.

The Bottom Line

Credit for mortgage approval does not need to rely solely on a credit repair company.

The best strategy is often to:

Rebuild With On-Time Payments

Maintain on-time, balanced payments for at least one year, avoid new derogatory credit, and leave collections and charge-offs unchanged unless otherwise advised by a mortgage loan offi Older credit issues are often manageable, whereas recent late payments typically present a more significant concern

Get New Credit To Off-Set Prior Bad Credit

The easiest and fastest way of rebuilding your credit with bad credit and boosting your credit scores for mortgage approval is by getting new credit. Get three to five secured credit cards with $500 credit limit. Get two credit rebuilder account. Add yourself as authorized cardmember from a family member, or close friend. The main cardholder cannot have any late payments, have timely payment history, no late payments, and under 30% credit utilization ratio. We will cover more on this topic on a separate thread.

https://www.youtube.com/watch?v=EPjbMv4KtxM

• This discussion was modified 2 weeks, 4 days ago by  Sapna Sharma.

Credit In The Mortgage Process: Credit Repair And How To Boost Your Credit For Mortgage Approval

Why Is Credit Important During The Mortgage Process?

Credit plays a key role in mortgage approval. Your income proves you can handle the payments, and your assets show you can cover the down payment and closing costs. Your credit tells the lender how well you have managed borrowed money in the past.

Lenders review your credit report when you apply for a mortgage. They check your credit scores, payment history, collections, charge-offs, late payments, bankruptcies, credit utilization, foreclosures, and recent credit activity. Your credit history helps determine if you qualify, which loan program suits you, your down payment, and your interest rate. The CFPB says that credit scores and credit report details can affect both your approval and the rate you get.

CREDIT: Things Mortgage Lenders Care About

Mortgage lenders check your credit scores, but they also look at your whole credit profile.

Credit Scores

Most lenders use a combined credit report from Equifax, Experian, and TransUnion. They usually take the middle score for one borrower. If there are several borrowers, many lenders use the lowest borrower score.

A higher credit score gives you a better chance of loan approval, more choices, and lower costs. If your score is lower, programs like FHA loans may still work for you. For example, with an FHA loan, a score above 580 lets you put down just 3.5%, while a score between 500 and 579 means you’ll need a 10% down payment.

Payment History

Payment history is the most important part of your credit. Recent late payments hurt your score more than older ones. If you had late payments in the past but have paid on time lately, you are seen as less risky than someone with a 620 score who has missed payments recently.

Mortgage underwriters want to see that you have paid all your other bills on time.

Credit Utilization

Credit utilization is the percentage of your available credit that you’re using. For example, if your credit card limit is $1,000 and you’ve used $900, your utilization rate is 90%. High utilization like this shows you may be financially stretched and can lower your credit score.

Paying down your credit card balances is a quick way to boost your credit score before applying for a mortgage.

Collections and Charge-Offs

Medical collections, non-medical collections, and other charged-off accounts (which have been paid) are often viewed differently. Depending on the loan program, automated underwriting results, and the lender’s internal policies, collections and charge-offs may not need to be paid prior to qualifying for a mortgage.

A common mistake is paying off collections right before applying for a mortgage without talking to a mortgage professional. Sometimes paying collections can change your account status and even lower your credit score.

Credit Disputes

Credit disputes can complicate mortgage underwriting. For some accounts, you must remove the dispute status before your loan can close. This can delay the process and may also hurt your credit score.

If you plan to dispute any accounts while applying for a mortgage, talk to a mortgage professional first.

Credit Repair: What You Should Know Before Applying For A Mortgage

Credit repair is the process of reviewing your credit report for old, incorrect, or negative items and correcting them to improve your credit score. It does not mean creating fake credit, hiding debt, or trying to trick the system with disputes. are of their credit history by reviewing their credit reports and knowing how to dispute errors, ultimately improving their credit standing over time.

Review All Available Credit Reports

Before you apply for a mortgage, review all three of your credit reports for these issues:

Late payments that are incorrect

Accounts that are not your own

Collections that are duplicates

Balances that are incorrect

Old accounts that are reported incorrectly

Accounts that are included in bankruptcy and still report

Personal information that is reported incorrectly

Fraud/identity theft

You can get free credit reports at AnnualCreditReport.com. Right now, you can access one free report from each of the three bureaus every week.

Only Dispute Legitimate Issues

You have the right to fix your credit, but be careful. Disputing issues such as unauthorized late payments or accounts can raise additional questions during underwriting. Only dispute real issues before applying for a mortgage to avoid problems.

Don’t Close Credit Cards.

Many borrowers think that paying off and closing credit cards is a good idea, but it can backfire. Closing old accounts lowers your available credit, raises your credit utilization, and shortens your credit history. They have no annual fees, and they are older; it may be beneficial to keep the account open.

Avoid New Debt Before Closing

Don’t open new credit cards or finance big purchases like cars or furniture. Avoid co-signing for anyone or increasing your credit card balances. Lenders may check your credit again before closing, and new debt can change your debt-to-income ratio, lower your score, or even lead to a loan denial.

How To Boost Your Credit For Mortgage ApprovalPay Every Bill On Time

The most important rule is to pay every bill on time. Missing a payment can slow down your mortgage process. This applies to all debts, including credit cards, car loans, student loans, rent, utilities, and other installment payments.

Lower Credit Card Balances

To quickly improve your credit score, pay down your credit card balances. Try to keep your balances low compared to your credit limits.

Aim to keep each credit card balance at or below 30% of its limit. Keeping it under 10% is even better. Don’t max out your cards before your mortgage closes.

Keep Small Balances On Active Cards

If you don’t have any active credit cards, your score might not grow as much. Using one or two low-limit cards and paying them on time can help build your credit.

Try not to carry high balances on these cards. Use them only when needed, keep the balance low, and always pay on time.

Request a Credit Limit Increase With Caution

If your balance stays the same, asking for a higher credit limit can lower your credit utilization. Some requests may cause a hard inquiry, so check with your issuer before you ask.

Add to Your Authorized User List

If you have limited credit history, ask to be added as an authorized user on someone else’s credit card. The card should have a long history, low balance, and no missed payments for the best results.

Don’t become an authorized user on a card that’s maxed out, has missed payments, or has a low credit score.

Avoid Excessive Credit Inquiries

In general, hard credit inquiries will cause a reduction in your credit score. The CFPB states that if a bank is considering your application for credit, the credit check will be an inquiry, and there will be a small negative impact on your credit report.

Shopping for a mortgage is different from applying for lots of credit cards. Unnecessary credit applications can hurt your score more, so avoid applying for credit you don’t need.

Maintaining a Quality Rental is a Must

If you have little credit history, a good rental record can help. Manual underwriting often looks for proof that you’ve paid rent on time for the past year.

You may need to show bank statements, receipts, canceled checks, or a rent verification to prove your rental payments.

Keep Money In The Bank

Credit matters, but mortgage lenders also look at your savings, down payment, and overall finances. If your credit isn’t great, saving money and avoiding overdrafts can help your application.

Credit Repair Mistakes That Can Hurt Mortgage ApprovalPaying Collections Without A Strategy

Paying off collections right before you apply for a mortgage isn’t always smart. First, check if your loan program requires it. Sometimes, it’s better to wait until closing to pay them off.

Disputing Accounts During The Loan Process

Disputing accounts can slow down your approval. Usually, you’ll need to resolve disputes before underwriters can give final approval.

Opening New Credit

Opening new credit accounts, like car loans or credit cards, can change your whole application—even if you’ve already been approved. It can even cause your mortgage to be denied.

Joint Accounts

If you share a joint account, the payment history affects you too. If the other person pays late, your credit can suffer.

If you co-sign a loan, you’re legally responsible for it. Lenders will count that debt in your debt-to-income ratio unless you can prove the other person is making the payments.

Credit And Automated Underwriting System Approval

Most mortgage files are screened by an Automated Underwriting System, commonly called an AUS. For the FHA, it is the TOTAL Scorecard. Conventional loans may undergo assessment by the Fannie Mae Desktop Underwriter or the Freddie Mac Loan Product Advisor.

Automated Underwriting Systems don’t just look at your credit score. They consider your credit, income, assets, debt-to-income ratio, loan-to-value ratio, savings, and your credit history as a whole.

A credit score. You might get approved with a lower credit score if the rest of your application is strong. On the other hand, even a high score won’t help if your debt-to-income ratio is too high, your income is unstable, or you’ve had recent credit problems.d Manual Underwriting

Manual underwriting is an option if the automated system doesn’t approve you or if you have little or no credit. It takes more time and looks closely at other strengths in your application.

Good compensating factors may be:

timely rental payment history

stable employment

low payment shock

low debt-to-income ratio

cash reserves

no recent late payments

the ability to document the full income and assets

This is why manual underwriting is called for. The borrower must be financially prepared for the mortgage payment.

Best Credit Plan Before Applying For A Mortgage

From 90 To 120 Days Before Applying

Review all three credit reports.

Identify any errors.

Stop applying for new credit.

Pay down credit card balances.

Make every payment on time.

Speak with a mortgage professional before paying collections.

30 to 60 days before applying

• Keep balances low, holding them under 30%.
• Avoid making any large purchases.
• Avoid changing jobs.
• Avoid making any cash deposits that you cannot explain.
• Collect your pay stubs, W-2s, bank statements, and a form of all your government-issued IDs.
• Prepare letters of explanation if you have held major credit events.

During The Mortgage Process

• Do not apply for any new credit.
• Do not miss any payments.
• Do not increase the balances of your credit cards.
• Do not sign as a co-debtor to anyone.
• Do not transfer money to any other accounts without documented reasons for the transfer.
• Do not delay in responding to your lenders. Adjust promptly to the conditions given.

Final thoughts

CredCredit is an ongoing part of the mortgage process. With effort and good habits, you can improve your credit over time. Even if you have bad credit or a history of bankruptcy, foreclosure, or late payments, you can still become a homeowner by finding the right mortgage.e right credit culture can mirror the right mortgage. Therefore, the right credit should not be seen as a trick to secure a mortgage, but rather as the expectation that all payments be made promptly and that all outstanding debt be paid down to zero, with the necessary documented corrections of all errors. This should be done while avoiding new outstanding debts. This strengthens your credit score.

A mortgage isn’t just about your credit score. Lenders look at your credit, income, assets, debt-to-income ratio, payment history, savings, and the loan program. If you’re strong in all these areas, you’ll have a better chance of getting approved.

https://www.youtube.com/watch?v=7QBTpJCeMis

One sure thing mortgage lenders can count on is they all run credit.

There are three major credit bureaus:

1. Experian

2. Equifax

3. Transunion

Finance companies, employers, vendors, and creditors may use one or more of the above credit report. Some may use one out of the three above. Others may average two credit scores from two credit bureaus. Others may use a tri-merger credit report which is the middle credit score. For example, a borrower may have the following:

1. Experian Score 540

2. Equifax Score: 640

3. Transunion 700

The middle credit score above is the Experian Credit Score of 640.

Mortgage brokers , correspondent lenders, Full-Eagle lenders normally run a tri-merger which mean they use a private credit monitoring agency (Credit Plus, CIC, Advantage, Xacturs). The credit monitoring service coordinates the administration of the tri-merger credit report which yields credit scores from each of the three credit bureaus. Each credit bureaus has its own credit score of the applicant. On the credit report, you will find the borrower’s name AKAs (also known as), curent and previous addresses, DOB, employment history for the past ten years, list of creditors, payment history, derogaory credit, type of credit, amount borrowed or credit limit on revolving accounts, date of last activity, hard credit inquiries in the past two years, credit disputes, collection accounts, charge off accounts, public records (bankruptcy. foreclosure, deed-in lieu of foreclosure, short-sale, tax liens, judgments and other public records).

NOTE: Just because a creditor is not listed on the credit report, does not mean the applicant is clear of the tradeline. All mortgage lenders will run a national third-party public records search. What this mean is public records not reporting on credit reports will get discovered by lenders. For example, if a shrewd credit repair consultant successfully removed a bankruptcy and/or a recent derogatory credit event), you can count on being discovered on the national third-party public records search.

Over 80% of mortgage loan applicants at Gustan Cho Associates are folks who coult not qualify at other mortgage companies. Statistics show 100% of all pre-approvals at Gustan Cho Associates close. The number one reason borrowers encounter stress during the mortgage process or a last-minute mortgage loan denial is due to the loan officer not properly qualifying borrowers prior to issuing a pre-approval. One of the largest factors the pre-approval is null and void is because the loan officer issues a pre-approval with not thoroughly reviewing line item per line iterm on the credit report. Here is a list on things to look for and ask the borrower in the mortgage qualification process prior to issuing a pre-approval letter:

1. Carefully look for credit disputes.

2. Borrowers cannot have any credit disputes on non-medical collections and no credit disputes on any derogatory credit tradelines.

3. Credit disputes is allowed on medical collections, non-medical collections with zero balance, and non-medical collection accounts with a total (sum of all collection account balance) of UNDER $1,000.

4. Lenders are allowed to allow credit disputes for derogatory credit tradelines that are two years old or older from the date of last activity.

Credit Scores, Credit Payment History, and Public Records on Credit Reports Determine Your Home Loan Eligibility, Mortgage Rates, and a Comprehensive Overview on The Applicant’s Ability To Repay The Mortgage Loan and The Borrower’s Ability on How Much House They Can Afford.

https://www.youtube.com/watch?v=tuDtVACDpHM

• This discussion was modified 2 weeks, 6 days ago by  Sapna Sharma.
• This discussion was modified 2 weeks, 6 days ago by  Sapna Sharma.
• This discussion was modified 4 days, 23 hours ago by  Sapna Sharma.