Do your buyers know? 5 Don’ts and your buyers’ credit.

Your clients may know the Do’s, but how about the Don’ts?

Your clients are probably making these mistakes thinking it will help them get approved. Share these tips with your clients, they’ll be glad you did.

1. Don’t Pay Off Collections or “Charge Offs”. If you want to pay off old accounts, do it through escrow, making sure that the debt is yours. Request a “letter of deletion” from the creditor.

2. Don’t Close Credit Card Accounts or it may appear that your debt ratio has gone up. It also affects other factors in the score, including credit history.

3. Don’t Max Out or Over Charge Credit Card Accounts. Keep your balances below 40% of their limit during the process. Pay down balances if possible.

4. Don’t Consolidate Your Debt. When you consolidate all of your debt onto one or two credit cards, it will appear that you are “maxed out” on that card and you will be penalized.

5. Don’t Do Anything That Will Cause A Red Flag To Be Raised By The Scoring System. This includes adding new accounts, co-signing on a loan or changing your name or address with the bureaus.

Lock & Shop

You can now lock your interest rate while you shop for your new home. Even without a formal offer on a property, Lock & Shop gives you rate security with 60 or 90 day rate locks. If the rates improve as you shop, you can float down to the better rate.
Along with the Lock & Shop, you can submit an approval with conditions to make your offer strong in a competitive market.

Click here to apply now.

New 3% Down Program!

Introducing New 3% Down Program with No Income Limits.

HomeOne is a new low down payment mortgage option available to all first-time homebuyers — no matter where they live or how much they earn.

  • No income limits
  • No county restrictions
  • Down payment as low as 3%
  • Gift funds accepted from family members
  • Available on conventional fixed-rate loans
  • Minimum 640 credit score

Make home ownership a reality for more of your borrowers. Check out HomeOne and all of our other low down payment options today.

Fed announces rate hike decision

The Federal Reserve’s governing board has released its decision on interest rates while acknowledging that inflation is closing in on its target without indicating any intention to veer from their gradual path of interest-rate increases.

“Inflation on a 12-month basis is expected to run near the committee’s symmetric 2 percent objective over the medium term,” the policy-setting Federal Open Market Committee said in a statement Wednesday in Washington. “The committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate.”

Source: Fed announces rate hike decision

Home prices up again as the West leads

Cities in the West, led by Seattle, Las Vegas, and San Francisco, drove a further increase in home prices in February according to a leading index. The S&P CoreLogic Case Shiller NSA Index, which covers all 9 census areas, was up 6.3% year-over-year from 6.1% in January. There was a 6.5% rise for the 10-City Composite (up from 6% in January) and a 6.8% rise in the 20-City Composite (from 6.4%).

Source: Home prices up again as the West leads