Your Questions About Check My Mortgage Loan

Susan asks…

When credit score to mortgage loaners take into accound?

I’m putting both my income and my fiance’s income to get a home loan. I know they check your credit score but which one to they use considering there are three of them from each of us. Do they take the lowest out off all of our scores or the highest?
sorry, take into account….

admin answers:

They use both of your scores- the middle score of each person. You will also need between 20-30% down depending on the type of property you plan on purchasing.

Steven asks…

How does paying off all debt at once affect your credit score?

So I have like 10k in debt half student loan and half car payment. My credit scores are very great (767 792 and 804) I authorized a credit check for a mortgage loan and they sent me a copy so I know these are real. Now I want to pay all all the 10k all at once. Will for some reason my credit score go down? I know things affect the score oddly sometimes. What you think may be good, is actually bad ( like closing a cc , etc) So will this negatively affect my credit? I usually pay double my amounts now and early, so I dont know if thats how it got so high to begin with

admin answers:

After you pay off a loan, do not try to delete it from your reports.
It will report positively for up to 10 years.
I would not worry about your scores. They are fantastic.
Scores above 740 are all you need to get the best interest rates around.
Any higher than that is really not necessary – at all.

Try not to close your oldest credit card unless it has an annual fee.
This establishes your credit history length.
To improve your credit, pay credit cards in full each month.
Carrying balances can actually cause serious damage to credit scores.
It brings no benefit to carry balances. None.
Just use your cards for something you need such as one for food and one for gas, and pay in full when you get the bill.
If these are store cards, use them at least once a year for something small, and pay the bill in full when you get it in the mail.

James asks…

Will we be able to get a mortgage loan?

My husband and I want to move to his families ranch and buy a double wide, but we are having some credit problems. A couple months ago, his score was in the mid 600’s and we weren’t worried about it, but we checked last night and one score is 600 and the others are like 530. We are stressed out about it, wondering if we will qualify for anything. We have a 10% down payment for the house we want, and his debt/income ratio looks really good. His credit had 2 negatives, hospital bills from 2005 but only totaled $425. We just paid them off, and he also has one hospital bill we are making payments on. ($1400). All of his vehicle loans(2) look really good. One is paid off, the other is not, but in good standing. Do you think it’s still possible to get a mortgage loan? Is it easier on a mobile home than a house? Any help would be greatly appreciated.

admin answers:

Right now there looks to be a lot of negatives on your husband’s credit report. Scores of 600’s aren’t good, plus the 2 negatives reflect poorly on his report. While his debt to income ratio is good, I would suggest saving 20% of the down payment. You “may” find a loan for 10%, but the interest rates and terms will be obscenely high.

However, if you manage to save 20% of the down payment, you’ll be surprised how much better banks treat you. (In fact, it also equates to more monthly savings, no PMI payments)

Good luck, and keep saving for easier monthly payments!

Linda asks…

Will we be able to get a mortgage loan?

My husband and I want to move to his families ranch and buy a double wide, but we are having some credit problems. A couple months ago, his score was in the mid 600’s and we weren’t worried about it, but we checked last night and one score is 600 and the others are like 530. We are stressed out about it, wondering if we will qualify for anything. We have a 10% down payment for the house we want, and his debt/income ratio looks really good. His credit had 2 negatives, hospital bills from 2005 but only totaled $425. We just paid them off, and he also has one hospital bill we are making payments on. ($1400). All of his vehicle loans(2) look really good. One is paid off, the other is not, but in good standing. Do you think it’s still possible to get a mortgage loan? Is it easier on a mobile home than a house? Any help would be greatly appreciated.

admin answers:

If you have good credit you more like to get a mortgage loan. I’m currently looking in this myself. If you both go in about as a co-loan. You’d qualify for more. The payments are up to you on how much you can afford. I have medical debt too plus two credit cards. I was told that medical debt doesn’t matter as long you are paying on it.

It doesn’t matter what type of house you concider buying .

I hope i helped

Sandy asks…

My credit went down 124 points because i paid off 4 major accounts in order to get a mortgage loan.?

My mortgage lender asked me to lower my debt to income ratio by paying off 4 accounts that me and my wife had, with a total of almost 10k, well we ended up paying all of the accounts and we stayed with our 2 cars. But the day before the closing the bank checked my credit and it went down from 610 to 486, and they told me that it was because I did exactly what they had asked me to do by paying off those accounts, and they denied us the loan the day before closing. Help please.

admin answers:

Paying off the account should have raised your score because you freed up usable credit line.
What If fear you did was pay off and close the accounts…
Which you should never do.

Explanation in easy term detail: You have 3 credit cards and each card gives you a credit limit of $2000. So your whole line of credit on your report is the total of all three – $6000.
If you carry a balance on each card of $1000 then you have reduced your available line of credit from $6000 to $3000 and are already at 50% of your available credit.
If you pay them all off you are back to the full credit line of $6000.
But if you pay them all off and then close them… You have available line of credit of ZERO.

So if the only thing you left active is your car loans… For obvious reasons, than you don’t have a line of credit right now.
Car loans are great tools for a lender to judge how well you pay back debt but they are not considered a line of credit that can be used by you. (Essentially you already used it and are now paying back the maxed out car loan… Just like you would a maxed out Credit Card.

I don’t think your lender is very truthfulll to you so. There is no way that somebody that was allowed to deal with a line of credit of $10 000 or more on credit cards alone would drop to the level of 486… That just doesn’t happen. I would expect to see you in a level of 720 and up but not below the “good” level.
Go to “annualcreditreport.com” and request your free annual credit reports – you need to see your reports for real.. I think your lender was telling you a lie just to be able to give you reason to deny you the loan.

The credit scores have to be much higher now to be able to qualify for a mortgage and to be honest a 610 is not considered good enough nowadays to get a mortgage at all. At least not without a substantial downpayment – in the range of 20% and even higher – and the terms would not be in your favor. Where a score of 750 would get you an easy 5.5% you can expect that even a sizable downpayment would get a 610 score nothing but a 7.5% mortgage rate.

I think your Lender was trying to get out of the deal because you no longer qualify for it to begin with.

Talk to your Credit Card Companies about your closed accounts with any luck they will reinstate the cards you closed….
Then be prudent and don’t use them at all and work on getting the car loans paid off. This should give you enough time to save for a sizable downpayment and within a couple of years you will be ready to buy a house. Right now is an absolute horrible time to buy anyway.
You will be glad that the bank denied you this year because you can pick up that house for a lot less in 2 years.

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