Your Questions About Mortgage Loans

Betty asks…

How many points do you lose on you credit score after getting a mortgage loan?

I want to forecast what will happen to my credit score after I commit to a mortgage loan. Any input will help, thank you very much.

John answers:

Typically your score will only temporarily drop..often times significantly as much as 50 points, sometimes even more..but after about 4 months..your score will BEGIN to recover…and after 12 months your score (assuming you pay the mortgage on time) will actually increase significantly from where it was “pre-mortgage”…

Joseph asks…

How long do you have to wait to get a mortgage loan after bankruptcy?

Just finished with bankruptcy and has received discharge. With bankruptcy how long do you have to wait to get a mortgage loan? Will bankruptcy plus foreclosure makes it worse?

John answers:

Well if it was chapter 7, Everything shows as dismissed show as dismissed and your asking about a F.H.A. Loan.

They require that your BK be dismissed for at least 2-years and that you reestablish some type of good credit in that time.

As far as making it worse, it most likely can’t look much worse.

Now that you have your discharge get started reestablishing some good credit.

Good luck.

Ken asks…

What are the chances of getting a 45000 mortgage loan if im currently unemployed?

I am trying to get a mortgage loan for 45000. I am currently unemployed but i have a very good credit score and excellent credit history. I have 4 months of unemployment left. Im trying to purchase a home for 64000 and use it for rental property. I currently have 19000 in my bank account. What are the chances of me getting a loan???

John answers:

None at all. Would you give someone that much money knowing up front they have no way to repay it? Come on, you must be brighter then that!

Mark asks…

How long do it take to get a credit score for a mortgage loan.?

My wife and I was trying to apply for a mortgage loan and the mortgage company said that she did’nt have a credit score. She don’t have any debt or anything. Her credit history is clean. How does she go about getting a credit score as soon as possible and how many forms of credit should she apply for?

John answers:

Yeah, the problem here is that she doesnt have any debt. You get a credit score by having debt, such as credit cards, car loans, etc, and then by paying those loans off in a timely manner. With no debt, you’ve got no repayment history. Getting her a credit card or two in her name is a good place to start. But it could take a while to build her any real history- a year or two at least. However, I dont think I’d let that stop me from buying a home. As long as your score is good, as long as you are both verifying your income, I wouldnt think that would be a showstopper.

Robert asks…

When applying for a mortgage loan does it matter that you checking account is Joint account?

I’m applying for a mortgage loan on my own but currently have joint checking accounts with my fiance. Does it matter that on my statements it also has her name or do I need to have her removed from the account?

John answers:

If your fiance is going to be on the deed it won’t matter at all, even if only you are on the loan. If not what we do is use only 1/2 of the ending balance on the account statement as your assets. If you do take her off keep in mind that lender will ask for 2 months (minimum) statements.
The reason for only using 1/2 is since it’s a joint account we assume 1/2 is the other persons. One final note: The reason for requesting the bank statements is to make sure you have the required amount for down payment, closing costs & reserves. Make sure to have no NSF charges or overdrafts- this can cause loan to be declined. Also any large/unusual deposits will be questioned- be prepared to document.
Good luck!

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