Thursday, June 2, 2011

Quick quote...

Sometimes good things fall apart so better things can fall together

Tuesday, May 17, 2011

GREAT NEWS for those of you looking to purchase a Freedie Mac foreclosed property! 3.5% Closing Cost assistance is being offered through the HOMESTEPS program. This is similar to the 3.5% assistance currently being offered on Fannie Mae HOMEPATH.

Offers must be on HomeSteps properties and received by July 31 with escrow closing on or before Sept. 30 Also, their is a $1,200 bonus being offered to the Buyer's Agent

Wednesday, April 27, 2011


In this changing Real Estate & Mortgage market, it is very important to stay updated on the constantly changing guidelines to acquire financing. One of the tools that I use when I have a question on certain FHA guidelines is their FHA FAQ search engine. This by all means does not indicate a complete yes or no answer due to Lender/Correspondent overlays, but it will allow you to answer some of the most common questions.

I hope your find it useful and to your advantage.

Wednesday, March 16, 2011

Credit Score: What is it Good for?

The Elements of a Credit Score

A credit score is an extremely important financial tool. It provides access to the financing you need in order to buy a car, a home, or pay for college tuition, among other things. Since higher scores equate to lower costs and vice versa, it's vital to understand the factors involved in calculating your score. Here are the five elements that make up a credit score, in order of importance:

Payment History: 35% impact. Paying debt on time has a positive impact. Late payments, judgments, and charge-offs have a negative impact. Delinquencies that have occurred in the last two years carry more weight than older items.

When applying for a mortgage, every point in your credit score can make a big difference. So don't make any major financial or credit decisions - even paying off an old debt or delinquency - without first discussing it with your mortgage professional.

Outstanding Credit Balances: 30% impact. This factor marks the ratio between the outstanding balance and available credit. Ideally, consumers should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when planning to enter into a loan transaction within 3-6 months.

Credit History: 15% impact. This marks the length of time since a particular credit line was established. A seasoned borrower is stronger in this area.

Type of Credit: 10% impact. A mix of auto loans, credit cards, and mortgages is more positive than a concentration of debt from credit cards alone.

Inquiries: 10% impact. This quantifies the number of inquiries (or requests for credit) that have been made on a consumer's credit history within a 6-12 month period. Each individual inquiry - up to 10 - can hurt your credit score by as much as 5 to 30 points. Any additional inquiries thereafter will not affect your credit score.

In other words, don't start the loan process until you're ready to act. Otherwise each individual credit inquiry could cost you. However, scoring models have now been adjusted to count multiple "hard" inquiries within a 14-day period as a single request. So, when you're ready, your credit will be too.

If you or anyone you know has any questions about credit scores or what can be done to repair them, please don't hesitate to call.

Jorge Merlos
Integrity Home Finance,
A Mortgage Banking Company
Office (909) 945-8777