Tag Archives: mortgages

Update on What Credit Score is Needed to Buy or Refinance a Home???

Credit PigI get ask this question a lot and wrote a blog on this back in October 2013 and since the lending industry does change often I thought I would update you on Lender Requirements on credit scores.

Lenders have become a little more open when it comes to their credit score requirement, typically now it is 620 for government (FHA, VA & USDA) loans.  Conventional loan requirements for credit scores are typically higher than government, this is due to the face that government loans are “guaranteed” or “insured” by the government.  So that lessens the lenders risk.

The credit score the lenders go off of is your middle score of the 3 credit scores they get when they pull your credit.  If the loan has more than 1 borrower the lender will go off of the lower of the 2 middle scores.

The higher your credit score is the smoother the loan will be underwritten “typically” and the better your interest rate.  So someone with a 760 mid score typically gets a better rate than someone with a 620 mid score.  The reasoning behind this is risk factor, the lower your score the higher the risk taken by the lender to extend the mortgage loan to you.

The down payment amount / percentage plays into the approval!  Let’s say you have a 640 credit score and you will be putting 40% down on your new home.  Since the lender is taking less of a risk the chances are pretty good that you will be approved.  The larger down payment lessens the lender’s risk and they are more open to doing the loan.  This of course is contingent on what derogatory credit is reporting on your credit report.

While some lenders say they will loan to borrowers with scores lower than 600 but I have yet to see one close.  I am from Missouri and “You have to Show Me”!!! LOL

Bottom-line you will need a middle credit score of 620 or higher.

If you have any questions please don’t hesitate to ask and I will answer.

 

Blessings,

Cindy Seely

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

 

 

 

 

Late Update

Celebration Happy, Happy, HAPPY!!!!!!!  

I wanted to let everyone know that in May 2014 I took a new position with a new company.  I am the Western Missouri Manager & Loan Officer with National Asset Mortgage “America’s Finance Professionals”.

I am so blessed to have been given this opportunity in life.  National Asset Mortgage is a mortgage broker licensed in 35+ states!  😀

So if you are looking to buy that new home or are ready to refinance give me a call and let’s talk.

Also if you know of someone who is looking for mortgage loan please send them my way, I would really appreciate it.

Blessings,

Cindy Seely

Western Missouri Manager & Loan Officer

National Asset Mortgage, L.L.C. NMLS# 836952

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

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

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

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