If you are in the process of buying a house, keep checking on the progress, monitor your credit scores because the lenders have once again tightened their standards. Improve your credit profile by doing the following:
• Review your credit reports for errors. Visit AnnualCreditReport.com and order your credit reports from the three main credit-reporting bureaus: Experian, TransUnion and Equifax. You’re entitled to a free credit report once a year if you go through this website. Review your credit reports, and look for inaccurate information. Dispute errors through their published process
. • Pay off credit cards and other debts. Paying off balances will increase the amount of unused credit you have available, which will help your score. Many say even if you’ve decided never to use credit cards again, don’t close your accounts. You reduce the amount of your available credit, which could hurt your credit utilization ratio.
• Avoid opening any new accounts. New accounts you open are likely to drop your credit score. When you order your free credit reports from AnnualCreditReport.com, your credit scores aren’t included; you’ll have to pay a fee to get them. You can buy your FICO score and credit report from TransUnion and Equifax at www.myfico.com for $15.95 each.
Many banks have posted profits possibly brought in by the sales of short sales and REO properties.
In a meeting at the white House Monday Citigroup and wells Fargo agreed to support the struggling economy by lending. Possibly the recently released “Home Affordable Foreclosure Alternatives Program” or “HAFA”guidelines for "streamlining" short sales will help a few consumers in distress.
That is good news for a home buyer. Sounds like things might be loosening up a bit?
But Fannie Mae guidelines don't seem to be so consistent with this focus. Fannie Mae sets the standards for mortgage loans. Starting this week, mortgage finance giant Fannie Mae will require borrowers with a 20 percent downpayment to have a credit score of at least 620. Previously, the cutoff was 580. This action could stymie frustrated buyers who look to take advantage of the tax credit incentives that were recently extended.
Makes you wonder if everyone is listening and aware of what is going on in the next room. Posted by Susan Phelps from StopForeclosureShortSaleTeam.