Archive for the 'Scenarios' Category
Help the lady that just commented please. Lar - Should you pay off an old collection? Maybe not now.
Credit Wrinkle: Tip
Did you know that your credit score will probably get worse, not better, if you pay off an old collection?
Tip: Don’t pay off old collections if you are about to purchase a home. An experienced loan officer can guide you through what to do and when.
You can ask questions about this on this forum. Click Comment 1st and type in your question.
Larry Cragun
4 comments
I had another I couldn’t help today. Credit Casualty
For the second day in a row a friend of the faithful 25 came forward for help. Today’s brought front and center an important principle. Take care of your mortgage first, last, and always. In other words, if you are having financial problems your mortgage is your most important obligation.
The friend had gone through some problems. Things were better now, good enough they qualified for a 3 % down FHA loan. Then quickly a fact surfaced that dashed the possibility. They had let a home go back to the bank and the bank took a loss. That transaction was FHA. Instead of a great rate and a low down payment this borrower has to either pay off the FHA deficit, which they cannot, or go hard money.
Hard money is high interest rates, prepayment penalties, and a big down payment.
It is not fun not being able to help. So I guess I have to get my joy in sharing these important principles with those who drop by and read. Larry Cragun
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Here is a loan without a program for the buyer. How to fix this problem.
The borrower had a 520 credit score. They wanted to put less than 10% down. They had some items on their report that could be cleaned up. It was a purchase.
They have to do something to fix this. In the short term a larger down payment via a gift could work. The interest rates would be very high.
They may lose the opportunity to buy this house with my suggestions, but that shouldn’t be the driving factor.
I suggest they work day and night, literally, to clean up the glaring problem on the report. Give proof it is resolved to the bureaus, and watch the score climb. With the new score in hand, get a pre-approval first, then go find a home. If at this point in time you are close to a year or two years without negative credit marks, expect to get a conventional type of a rate.
The lower the rate, the lower the payment, or the more home you can buy with your credential. It is worth the wait. The market has settled down in many places, even if this means no bubble, it should not mean the market getting away from you. Larry Cragun
1 comment
To those in Scenario 1 - Had credit problems
How are you doing? Review the articles in this category. Don’t give up. Keep Dreaming, Keep Reviewing, Keep looking, Keep improving.
Larry Cragun
NEED I SAY MORE!
YOUR ADVOCATE:email me if you want.
LARRY CRAGUN
No commentsThis is the reason we have a stall ( A Bibble) if not a bubble
The New York Times Reports the hot market for second homes slump.
It was reported by the NAR that last year approximately 25% of home sales were for second homes.
I didn’t buy it. Interest rates for second homes are typically the same as a primary residence. Rates for rentals, investment homes are higher.I believe we had liar buyers. Borrowing as a second home with plans to rent out the little pearl.
It is harder to make things pencil now. People that are buying second homes are fewer because they really are buying as second home. The others have gone somewhere else to invest.
I think you could call it fraud, if you told the bank it was a second home, and lied to get a lower rate on a rental property.
So what should you do? Kick the renters out.
The question is, where are they investing now? Blogs?
Larry Cragun
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Scenario 3
Has A high credit score. Shops Rates on line, expects the lowest. Experienced. Has a home. Is moving up. Has a lot of equity. Has a good job. Has almost enough money to retire, but is not about to do that.
What can we do for him and his wife? Is there any advice for them?
2 comments
Scenario 4
This is a young couple with a graduate degree. They have a small young family. He is in his first job, a good one. They have saved $10,000 dollars so far. They have excellent credit (above 720). They have two problems: They want to stay close to work, which is costly. They need to keep their payments down for a year or two. They either need a low rate or to settle for a starter home.
If this is or was you, how did you deal with this? If you are a professional in the business, how would you attack this problem? I have some ideas, but will wait for a bit.
Your ideas are welcome. Larry Cragun
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Scenario 2: The investor
We haven’t written for you much. Some was in fun. Shame on us. So lenders, friends, experienced, or in need: Write on. Larry Cragun
No commentsWhat pulls your wagon - Faith or Fear?
As I look at this wagon I see it’s limitations. But someone sees it for more.
Who pulls this wagon, who is its owner? I bet not your ordinary kid, probably one with vision.
- and Faith in Himself.
He probably will grow up to believe in trying and doing.
Who pulls your wagon? Faith or Fear?
Fear prevents, prohibits, and destroys.
Faith believes, endures, succeeds.
We are believers here. Moving forward.
And you? I bet you’d love this wagon…
and that bumpy roads won’t stop you.
Larry Cragun
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