The Big 5 and Your Credit

Loving that buyers can start off the new year with mortgage rates still in the 3’s AND for First-Time Home Buyers, the 3% down payment loans are back – yay!!

First Homes are the Best

Low down payments, low interest rates… now what do you need to take advantage of both?

First, you’ll want¬†a great buyer’s agent, like myself of course ūüôā¬† I will help you find a home that suits your lifestyle & negotiate terms that¬†fit your¬†budget.

You will also need a trusted mortgage officer to help you secure a mortgage with a lender.  And, finally, lenders are going to want to see good credit to give you the most flexibility with down payments and the best rates. Now, what goes into a good credit score?

Click this link to  The 5 Biggest Factors Affecting Your Credit  as explained by Amy Fontinelle on Investopedia.com (which, by the way, is a site full of understandable information for consumers).

1. Payment History (35%)
2. Amounts Owed (30%)
3. Length of Credit (15%)
4. New Credit (10%)
5. Types of Credit in Use (10%)

Your credit score reflects the amount of risk a lender may be taking when they loan money to you.  It indicates how responsible you have been in taking out credit and paying back those loans and bills.  If you have not shown stable repayment of debt, expect a low credit score (and expect that banks may not want to loan you hundreds of thousands of dollars for a new home or that they may charge you much more to borrow from them).  On the flip side, if you have taken out credit and managed it well, your score will be higher rewarding you with better rates and more options for loans. This article takes only a few minutes to read, but is great information for years to come whether working to maintain your credit or rebuild it.

Jen McMorran Jen McMorran, Realtor
jen.mcmorran@verizon.net
508-930-5259
First Time Home Buyers
Existing Home Sales
New Construction
Antique Homes

Kensington Real Estate Brokerage – Servicing clients from Boston to Providence! North Attleboro, Attleboro, Plainville, Wrentham, Mansfield, Norton, Foxboro, Sharon, Seekonk, Cumberland, North Smithfield, Providence, Lincoln

What a Difference Wednesday … 3% Down Payments!

Great news for¬†some of my favorite clients … First Time Home Buyers!

Fannie Mae announced a new 3% down payment option for qualified first time buyers!!  Some homeowners with Fannie Mae loans may also be able to refinance with a 97% LTV (loan to value) which is good news for those who would not qualify under HARP (home affordable refinance program).

Give a shout if you’d like help connecting with a mortgage professional.¬† So important that you are comfortable with your mortgage officer. I’d be happy to share my favorite and most trusted¬†contacts with you!

December 08, 2014
Fannie Mae Announces 97 Percent LTV Option for First-Time Homebuyers
Lower down payment enables qualified borrowers to access credit
Callie Dosberg
202-752-3117

WASHINGTON, DC ‚Äď Today, Fannie Mae (FNMA/OTC) announced an option for qualified first-time homebuyers that will allow for a down payment as low as three percent. Building upon Fannie Mae‚Äôs successful lower down payment program offered through state Housing Finance Agencies, the 97 percent loan-to-value ratio (LTV) option will expand access to credit for qualified first-time homebuyers that may not have the resources for a larger down payment. These loans will meet Fannie Mae‚Äôs usual eligibility requirements, including underwriting, income documentation and risk management standards. These loans will require private mortgage insurance or other risk sharing, as is required on purchase loans acquired by the company with greater than 80 percent LTV. Read more

Jen McMorran Jen McMorran, Realtor
jen.mcmorran@verizon.net
508-930-5259
First Time Home Buyers
Existing Home Sales
New Construction
Antique Homes

Kensington Real Estate Brokerage – Servicing clients from Boston to Providence! North Attleboro, Attleboro, Plainville, Wrentham, Mansfield, Norton, Foxboro, Sharon, Seekonk, Cumberland, North Smithfield, Providence, Lincoln