MHQ - Mortgage HeadQuarters

Your credit score, as well as the information on your credit report, are key ingredients in determining whether you’ll be able to get a mortgage, and the rate you’ll pay. When you  apply for a mortgage loan , your lender will pull your credit report to determine your creditworthiness and your debt-to-income ratio to see if you are financially responsible. This also helps them to determine what loan amount you can afford and at what rate of interest to approve you at. The better credit you have, the higher loan amount you'll likely qualify for, and at a lower interest rate. Lender Scoring Methods While different lenders will use different qualifications and scoring methods to determine your creditworthiness, some variation of the standard FICO score is often used as a base. FICO takes different variables on your credit report from the three major credit bureaus (Equifax, Experian and TransUnion) to compile your score. Those range from 300 – 850. From this information, they typically...

When you  apply for a mortgage loan , your lender will pull your credit report to determine your creditworthiness and your debt-to-income ratio to see if you are financially responsible. This also helps them to determine what loan amount you can afford and at what rate of interest to approve you at. The better credit you have, the higher loan amount you'll likely qualify for, and at a lower interest rate. Check out exactly how your credit score matters when it comes to applying for a mortgage. Lender Scoring Methods While different lenders will use different qualifications and scoring methods to determine your creditworthiness, some variation of the standard FICO score is often used as a base. FICO takes different variables on your credit report from the three major credit bureaus (Equifax, Experian and TransUnion) to compile your score. Those range from 300 – 850. From this information, they typically compile a score based on the following factors: Credit History - How lon...

As rent payments rise and home mortgage interest rates remain considerably low, many couples today are opting to buy a house together instead of renting. It's no surprise that a lot of couples would rather own a house together than rent, as buying a house has a lot of advantages that renting doesn't. However, before jumping the gun on buying a home, you and your significant other should talk about how you will  apply for a home mortgage at the Lake of the Ozarks . Will you apply for the mortgage together or separate?  MHQ Mortgage HeadQuarters  has some advice for you. 1. Monthly Income and Assets There are a few things to consider before you decide what will be the best route for your home mortgage. Whether you apply singly or jointly, your loan officer will look at a few factors to see if you qualify. They will look at your gross monthly income and any available assets. If you file together, combing both your monthly incomes and assets can help you qualif...

A good credit score is important for more reasons than just obtaining new credit. These days, it can factor into everything from landing a new job to getting the best deal on your insurance policies. As a homeowner, there are many more reasons to keep up with your credit score and maintain a healthy credit history. It's more important than ever to avoid late payments on your mortgage . Here are some ways that missing or paying your mortgage late can affect your credit. Late Payments = Dropped Score A 100 point drop for one late mortgage payment? It’s true. A single 30-day-late mortgage payment can cause your score to drop by as much as a hundred points. Credit scoring algorithms vary based on many factors, and in some instances, the damage may be even greater and last for years. The Costs Accumulate At the time, a single missed payment will cost you only a late fee, but the expense really adds up on your next loan or missed opportunity. Low credit scores typically mean a h...

When you apply for a mortgage loan, your credit report and score both play a role in whether a lender will approve your mortgage loan application. Derogatory information, such as collection accounts, foreclosures, bankruptcies and late payments, all damage your credit. What you may not realize is that the way you manage your debts influences your scores, which in turn can influence your ability to qualify for a loan when you're ready to buy a home. Here are some credit issues to solve before applying for a mortgage to better improve your odds of loan approval. Errors in Credit Reports The credit reporting system is imperfect. Credit grantors, which are the source of much of the information that goes to the three credit bureaus, make mistakes. Some are due to sloppiness, some to confusion over names, and some are intentional. The credit bureaus also make mistakes. They have no financial interest in keeping anyone’s credit score low, but they do have a financial interest in m...