Category Archives: Refinance

What Credit Score Do You Need to Get a Mortgage?

Credit Score Mag GlassDo you know the answer to this question?  If your answer is “No” realize you are not alone.

If you are thinking of purchasing a new home or refinancing your existing mortgage it is Tremendously important to know what the minimum credit score requirements for mortgages.

If your credit score is to low you probably will not get approved for a mortgage loan. Your credit score will not only have an effect on being approved but also on what interest rate you will pay.  The Higher your credit score the lower your interest rate will be.

Minimum Credit Score Requirement for Mortgage Loans:

FHA : Minimum credit score “typically” is 640 with most lenders.  There are a few lenders out there that say they will go down to 580 but I have yet see or hear of one closing.

VA:  Minimum Credit score “typically” is 640.

USDA:   Minimum Credit score “typically” is 640.

Conventional:   Minimum Credit score is 680.

Mortgage lenders go off of your “Mid Score” which is the middle of 3 credit scores; example if your credit scores are 646, 687 & 669 the lender will use 669. If you by chance only have 2 credit scores they will go off the lower of the 2 scores.

I would advise you to shoot for a credit score of 740 or above that should be your goal.  The higher your credit score the less the risk the lender assigns to your mortgage and the better your interest rate.

The banks / lenders use your credit score to assign a “risk” to you mortgage.  When lenders analyze / underwrite mortgages your credit score is a major factor in loan approval.  Your credit score not only impacts the interest rate you pay but also the maximum loan to value for your loan.

With the current changes in lending it is very likely that lender criteria will require higher credit scores in the future.  So be prepared and work on increasing your credit score.

I would suggest checking into your credit score several months in advance of wanting to buy your new home.  A web site that I recommend is creditkarma.com it is a free site and they do not ask for credit cards.  They also give you FREE credit scores!

I would suggest checking your credit every 4 – 6 months to make sure it is accurate.  If you have a lender/bank pull your credit then your score will take a “hit” of 5 – 7 points to your credit scores.  But going into CreditKarma.com and pulling your credit report will not reduce your credit score.

If you have any questions on this or if you are ready to see about a new mortgage give me a call!

Blessings,

Cindy Seely

NMLS # 245378, Mo 10-1649-MLO, Ks 0009720

Mortgage Servicers Facts and Resolutions

First off I want to clarify what “Mortgage Servicing” is:

Mortgage Defined
Mortgage Defined

Many borrowers confuse mortgage servicer with their lender and that is not always the case.  A mortgage servicer is the company that you pay your monthly mortgage payments to.  They also can perform other services (i.e. payment of real estate taxes, homeowners insurance, loan modifications etc.) the servicer is not always the owner of your mortgage.

Your mortgage servicer oversees:

Escrow Accounts (real estate taxes & homeowners insurance) –  Escrow accounts are set up and the figures are included in the monthly payment you make to your lender / servicer.  Then your lender / servicer will make the payments when they come due.   By law you will receive a yearly statement breaking down the dates and amounts that will be made.

Posting Payment – The servicer must post payments the day they are received.  Keep detailed records of your payments in case at some point you need to dispute either a payment reported late or late fees charged by the lender.

Transfer of Mortgage Ownership – In a previous blog I posted about ownership transfer of your mortgage and what you need to be aware of if you receive notice that your loan has been transferred.  For details http://cindyseely.com/?p=130

Private Mortgage Insurance (PMI) – RESPA has no jurisdiction over the lender’s decision to require PMI. Nor does it have any jurisdiction over the lender’s decision to cancel PMI. (The PMI Act provides information regarding cancellation of PMI.).  RESPA has no jurisdiction over the lender’s decision to require PMI. Nor does it have any jurisdiction over the lender’s decision to cancel PMI. (The PMI Act provides information regarding cancellation of PMI.)

If you are having problems with your servicer and the problems are valid I would suggest you file a complaint with the servicer. The servicer has 60 days to respond to you.  Write a letter to your servicer and call it a “qualified written request under Section 6 of RESPA.” It should be a separate letter and not mailed with your payment. The mortgage servicer must respond to you within 60 business days of receipt. (See Sample Written Complaint to Lender.)

If that would not work out to your best interest in resolving the problem then I would suggest contacting the lender / services Ombudsman.  Now I am sure many of you have not heard the title Ombudsman before so here is the definition:  An Ombudsman is a neutral party who confidentially, neutrally and independently prevents or resolves problems, complaints or issues brought to him/her by individuals or groups and brings about systemic change where needed. The title ‘Ombuds’ is often used as a gender-neutral substitute for ‘Ombudsman’.

The best way I have found to find the ombudsman is either to ask your lender / servicer and they might well hang up on you! LOL You can also Google the lender / servicer name along with ombudsman, contact the FDIC, or Federal Reserve Bank.

If I can be of any further assistance or you have questions please let me know.

 

Purchases and Refinances

I offer a wide variety of loan programs:

  • VA
  • FHA
  • USDA
  • Conventional
  • DU Refi Plus

I provide the best loan program specifically for each borrower’s scenario

If I can help you with financing your new home or reduce your monthly mortgage payment with a refinance, contact me cindy.seely1@gmail.com

P.S. If you know of someone I could assist with financing please give them my name and contact information.CONTACT US

Blessings,

Cindy Seely

NMLS # 245378, Mo 10-1649-MLO, Ks 0009720

Do You Have Questions????

Question SolutionI am ready to start blogging again and was going over what topics to write on and wondering what is everyone’s questions are.  Then the light went off ask on your web site what questions do you have about mortgages, refinancing, buying a home, loan products.

Let me know what questions or situations you have about: mortgages, buying a home, refinancing, loan programs and I will answer your questions in the blog.

I am sure most of  you have questions so just post below ↓ and I will answer you back in the blog post.

I  look forward to hearing / reading your questions

Do you Believe you are chained to your current lender for Life?

Locked 100 Bill

What is stopping you from cutting that chain and reducing your monthly payment? 

Available Mortgage Options:

Conventional

FHA

VA

USDA

Worried that your house will not appraise?   Not always a worry;   NOT all refinance programs require an appraisal!   Call me and lets see if your refinance requires an     appraisal 816-728-1384.

Call me and together we can cut that chain 816-728-1384

  “I am upfront and to the point and I do what is best for my clients!” – Cindy Seely

 

Cindy Seely,  (816) 728-1384, Cindy@CindySeely.com                                
NMLS – 245378, Mo. 1649-MLO, Ks. 0009720, licensed in Missouri & Kansas                                                                                 
360 Mortgage Inc.,  28 Westwoods Drive, Liberty, Mo 64068   NMLS 80777