I often get some really valuable advice from people with whom I do business and I like to pass those along to you.  Here is some current information about how to help get a loan approved and how come items on a Credit Report are viewed and handled...

We talk with many people who have had to put their home buying plans on hold because they got bad credit advice from poor lenders.  Here are the biggest goofs we see people making with their credit:

1. Never pay old collection accounts!  When you pay off an old account that has been turned over to collections or has been charged off, the date of last activity for that account becomes the current date.  Your score goes down!  Neither Fannie Mae, FHA, nor VA require collections and charge offs to be paid to get approved for a mortgage.  Some lenders may have underwriting overlays and require it, but we work with plenty of lenders that do not.  If a lender tells your clients to pay off collections, they just don't know what they're doing.
2. Never close credit card accounts!  Closing accounts lowers your score.  If you pay off an account, keep it open and use it once a month to buy something inexpensive.  That way, the bank won't close your account for inactivity.  There's no need to pay interest to keep your score high, either.  Charge something and pay it right off.
3. Never dispute an account thinking it will be removed from your credit report.  There are new underwriting guidelines that force lenders to underwrite your loan manually if there are disputed accounts.  That means you no longer get to use the higher debt-to-income ratios that the automated underwriting software allows.  If you have questions about the difference between automated underwriting and manual underwriting, please call us.  You absolutely need to know the difference and the advantages offered through automated underwriting.
4. Never use a credit repair company.  They are rip-offs, 100% of the time.  We get offered huge referral fees from credit repair companies all the time.  If they are willing to pay us $1,000 to refer our clients to them, how much do you think they are charging those people to "repair" their credit?  A lot more than the referral fee!  We can show anyone how to fix their credit for free.  It's a service we have offered for years now and it has closed many, many deals for us and for the agents who refer their clients to us.

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Want to make sure your loans close?  Call the Mortgage Experts at 303-345-3683.