Numerical values are assigned to your payment patterns, available credit, number of credit inquiries, and type of credit. TELL ME MORE Scores give greater weight…

Credit scores are numbers that are derived from a consumer’s credit history. The number reflects the various credit details in a consumer’s past. People with…

It’s possible with an FHA loan. FHA allows for the purchase of a home provided that the monthly payments to the trustee are made on…

You’re probably not as bad off as you think. Some lenders ask that your bankruptcy be discharged for two years and still others ask that…

Your application will be reviewed just like any other. It’s a common misconception that unmarried couples can’t apply for a mortgage loan together. They certainly…

Keep your divorce decree handy so you can show who the judge said was responsible for paying what. Getting divorced is a bad thing. What…

If you’ve got good credit and your spouse has bad credit, there’s really no way to ‘‘average’’ your overall credit standing. One way to overcome…

You can, but creating a new identity can be illegal. Although some companies claim they can establish a brand-new identity for you, nothing can be…

Sure they can. But you need to be careful in choosing the company and also understanding the impact it will have on your overall credit…

Alternate credit in relation to mortgage loans is sometimes called nonstandard credit. These are items you must pay each month but won’t appear on your…

Sure they can ask, but that’s about all they can do. The only thing a seller needs to know is if you’ve been qualified for…

The best use of a cosigner is with an FHA loan, because they make the most liberal use of the nonoccupant coborrower’s income. If you’re…

There are lenders that specialize in mortgages for people with bad credit, and we’ll explore those loans in detail in Chapter 9. Such loans, normally…

You’ll need to have some data to back up your claims. Otherwise, the information won’t leave your report. If you and the creditor have a…

The easiest way to correct a mistake might very well be through your lender or mortgage broker, not the credit repository itself. In fact, it’s…

Sure you can. And you have the right to include any explanation you deem fit to be reported along with your credit information. Unfortunately, this…

The credit repositories tell you to challenge the alleged mistake, in writing, and if they can’t verify that the entry is correct within thirty days…

Get your credit report as early as you can and review it for accuracy. Although you can get your report from most anyone (according to…

You must realize that while helping out your brother, you also obligated yourself to the car lender. The car payment history will show up on…

By doing the very same things that got you the good score in the first place. Keep a few trade lines open, don’t max them…

By opening up three trade lines for a minimum of two years—the more years the merrier—and making your payments on time, every time. Also, by…

Good credit is obtaining credit and using it responsibly. This means keeping your debt load low compared to your available credit and paying back your…

Neither, actually. It might sound a bit surprising, but a lender gives no more and no less credit depending upon the type of bankruptcy filing.…

A Chapter 13 allows for repayment of your obligations over a predetermined period of time, whereas a Chapter 7 completely wipes out all consumer debt…

The credit report gathers information on who you are and how you pay your bills. It doesn’t list anything regarding your race or marital status.…

It contains a list of companies where you applied for credit, what your credit limits are, and if you’ve paid on time. And more. There’s…

In the past, when you wanted to borrow money or open a credit account, you’d sit in front of a banker or department store manager,…

Credit means I’m going to loan you some money and you’re going to pay me back. If you pay me back on time, every time,…

You’ll have to be able to afford both payments. There’s no sense in using this strategy if it’s nearly impossible to pay all the mortgages…

Get a temporary loan on your current house, called a bridge loan, to cover down payment and closing costs for the new home. More on…

There may be one exception: Fannie Mae’s My Community Mortgage (MCM). This zero-down program has been highly successful mainly because it has been fine-tuned to…

Putting zero money down is also an option. However, zero-moneydown loans will carry—you guessed it—a slightly higher interest rate and a still higher mortgage insurance…

If you had to put less than 20 percent down or otherwise had to come up with a PMI payment each month, it’s not likely…

Yes, you can, on some policies. You do so by rolling your PMI into your loan. It’s another alternative to piggyback mortgages and mortgage insurance,…

Historically, no. As an insurance policy, mortgage insurance has never been tax deductible as a separate payment. Until a recent law was passed making it…

Mortgage insurance (MI), also known as private mortgage insurance (PMI), is simply another form of insurance. The cost is based on the type of loan…

That depends largely on how much you have, or will have, available. The main issue concerning down payments is the amount you actually put down.…

You have to contact one of these programs and ask. There are no universal guidelines, but most programs expect you to be a first-time home…

Organizations that are not government agencies with their very own nonprofit status also have DPAPs. Recent IRS rulings, however, have made such entities rare, putting…

There are organizations whose job it is to assist people with their down payments. Many times these are nonprofits dedicated to getting people into their…

Of course any family member can help you out. If you are one of the chosen few fortunate enough to have relatives who can provide…

Sure you can, if your plan allows you to do so. Lenders have allowances to borrow all or part of a down payment from a…

A down payment must be your very own blood, sweat, and tears. Lenders want your down payment to come from your own savings or checking…

There’s no formula. You can figure out what works with a little trial and error. If you apply for a mortgage and want to put…

Risk elements are your gross monthly income compared to your monthly obligations. It’s a comparison of your debt ratios and your credit standing, plus the…

A down payment is your initial money into your purchase. A down payment is one of the risk elements lenders evaluate when making a mortgage…

For starters, it’s similar to how someone calculates commissioned income when it comes to gross income and expenses. Take your gross income and deduct your…

Your lender needs to determine if the asset has been around for a couple of years by looking at your tax returns. The lender will…

You don’t. You show them on your tax returns. It’s meaningless to write in any expense amount on a loan application because for one thing,…

Good question. And a common error. Some sales jobs require you to pay certain expenses out of your own pocket. Car payments, gasoline, and automobile…

Some jobs have a base salary plus commission. Or a base salary plus a bonus. In both cases, the lender will begin by adding your…

Carefully. If you thought lenders scrutinized your bonus income, they’ll research your employment history even more than normal if you work on straight commission. They’ll…

Bonus income is typically averaged over the most recent two-year period, with any year-to-date bonus money added in. Bonus income can vary from person to…

You can include overtime wages in your income, but there are some important facts about overtime that you need to be aware of. I remember…

If you’re paid by the hour, the lender will simply look at your pay stub to see what you get paid each hour and multiply…

There are two things a lender can do. One is to write a letter to your employer, verifying how much you make and how much…

Lenders need to establish, again via third-party verification, your pay frequency. Your pay stub will show your regular earnings during a particular pay period. This…

It means how much and how often you’re paid. The most common and simplest form of pay is a monthly salary. If you work for…

Most loan programs will require that you have been employed fulltime for the previous two-year period. Why? One of the reasons is to establish a…

That depends on how you’re employed and the nature of your job. How you’re employed and how you’re paid will in fact determine what kind…