Tag Archives: mortgages kansas

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.

 

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

Hello U.S. Veterans

First off if you are a U.S. Veteran that served this country I want to say “Thank You” I appreciate your dedication in protecting and serving this Country.

If you are a Veteran, with an existing VA Mortgage, you are entitled to refinance that property with a VA Streamline Refinance program, also known as an Interest Rate Reduction Refinancing Loan (IRRRL).  This VA IRRL as we will call it from here on out in this blog allows you to lower the interest rate on your VA mortgage with few or no out-of-pocket costs.

It must be a VA to VA refinance, and it will reuse the VA Certificate of Eligibility.

The VA IRRL is the probably the best option for you if you want to refinance your existing loan with a lower interest rate and monthly payment. .

The biggest VA requirement for the VA IRRL is that you lower your current rate to a lower rate or converting an ARM to a fixed rate.

Benefits of a VA IRRL: 

  • You Will NOT need to provide bank statements, W2s or paycheck stubs
  • You cannot receive any cash at closing
  • Refinancing without an appraisal is possible
  • You must be current on your existing VA mortgage and not have had ANY 30-day late(s) on your mortgage the last 12 months.
  • An IRRRL can be a fixed rate loan or an adjustable rate loan.
  • An IRRRL must be at a lower interest rate than your current mortgage loan unless you are refinancing from an adjustable rate mortgage loan.
  • The VA has a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan.

Bonus of a VA IRRL:

  • Within 30 days of closing, you will receive the money that was held in your old escrow account because a new escrow account will be set up with your new loan

No loan other than the existing VA loan may be paid from the proceeds of an IRRRL.  If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.

A VA IRRL can be accomplished faster and with less documentation than a typical home refinance loan.  Do you currently have a VA Loan?  Do you want to reduce your monthly mortgage payment?  What are you waiting for…? Contact Me and let’s get started with reducing your monthly debt by refinancing you in a VA IRRL.

Blessings,

Cindy Seely

Senior Loan Analyst

(816) 728-1384

NMLS # 245378, Mo No. 10-1649-MLO, Ks No. 0009720
360 Mortgage Inc., 28 Westwoods Drive, Liberty, Mo 64068
NMLS # 80777

Do you feel Flooded in your Current Mortgage? Is your current loan an FHA?

Do you feel Flooded in your Current Mortgage?  Is your current loan an FHA?

If you said “Yes” I have Great News…..  An FHA Streamline Refinance might be what you need!

One of the biggest advantages of an FHA Streamline is that no appraisal is required!  For many homeowners the current value of their home is what has held them back from refinancing.  FHA allows you to use your original loan amount as the value regardless of what your home is worth today.

Advantages of FHA Streamline vs. Regular Refinance

  • Appraisals NOT Required
  • Income is not verified but Current Employment is confirmed
  • Your Mortgage needs to be paid as agreed the past 12 months
  • The refinance must have purpose – this means reducing your mortgage payment by 5% or more.
  • Loan Balance Can NOT Increase (only the FHA Up Front Funding Fee  + Pre-paid interest can be added to the new loan)*
  • Closing costs cannotbe added to the new loan, the only items that can be added on an FHA Streamline are:
    • Up Front Funding Fee & Pre-Paid interest (# of day’s interest you pay ahead on your HUD1).
      • Leaving you (the borrower) with 2 options:
        1. A “Borrower Credit”  from the lender towards closing costs & pre-paids (real estate taxes and homeowners insurance) to receive a “Borrower Credit” your interest rate would raise but only slightly or
        2. You can bring the money to close.

Additional Advantages!

Earlier this year the government made changes (Positive ones) to the FHA streamline refinance program.

  • The new fees/costs only apply to FHA loans originated prior to June 1st 2009 which are being refinanced through the FHA’s streamline refinance program.
  • For eligible loans, the upfront FHA Up Front Funding Fee is being reduced from the current 1% of the loan amount to .01%.
  • The monthly FHA insurance premium is being rolled back to .55% of the loan amount per year.  Down from the current 1.15% (soon to be 1.25%)

Lower FHA fees and lower mortgage rates mean lower monthly payments which, in theory, lead to fewer loan defaults.

To get the full fact sheet http://portal.hud.gov/hudportal/documents/huddoc?id=FACTSHEETHSGRelieftoVets.pdf

A Reduction yes REDUCTION in FHA fees for the FHA Streamline borrower!  These fees can save the typical FHA borrower thousands of $$$ per year!  And that is not taking into consideration taking advantage of lower interest rates!

Do you have an FHA Loan that was closed and funded before June 1, 2009?  What are you waiting for; contact me.

Till Then,

Cindy Seely

Senior Loan Analyst

(816) 728-1384

NMLS # 245378, Mo No. 10-1649-MLO, Ks No. 0009720
360 Mortgage Inc., 28 Westwoods Drive, Liberty, Mo 64068
NMLS # 80777

 

Department of Justice Stands up for the Veterans!

Recently I have heard several stories where “Active” military personal have had their homes foreclosed on and it irritates me greatly!  I mean think of the stress levels that both spouses experience during the foreclosure process; not to mention the family having to move during a time that the husband / wife and dad is fighting overseas.  That is heartbreaking.

First off how can the bank foreclose on someone who is actively serving this country?  Second off in most situations foreclosing on an active military person is breaking the Service Members Civil Relief Act (SCRA) formally Soldiers & Sailors Civil Relief Act (SSCRA).  So why have the “Banks” been foreclosing on the one’s serving this country?  They must have been ignorant to the laws! Not to mention sitting there and clicking their computer screen to begin the foreclosure process while the veteran is putting his life on the line to protect this country.

Great news today!

The Department of Justice has made a stand for those military people! Thomas Perez, Assistant Attorney General for the Civil Rights Division said “The men and women serving our nation should not have to worry about a bank foreclosing on their home while they bravely serve our country,” BAC Home Servicing will pay a total of $20,000,000 as compensation for those military people who were illegally foreclosed on.

Military personnel whose homes were improperly foreclosed upon will each receive at least $116,875 from BAC Home Loans Servicing, a subsidiary of Bank of America, for the bank’s alleged violation of the (SCRA).   For details o the SCRA law http://www.military.com/benefits/content/military-legal-matters/scra/servicemembers-civil-relief-act-overview.html

I hope we all continue to stand up and support those serving this country.

Blessings,

Cindy Seely

P.S. yes I do VA loans

Senior Loan Analyst

(816) 728-1384

NMLS # 245378, Mo No. 10-1649-MLO, Ks No. 0009720
360 Mortgage Inc., 28 Westwoods Drive, Liberty, Mo 64068
NMLS # 80777