Month: April 2018

What is the Fannie Mae Waiting Period After a Derogatory Event?

Recent derogatory events on your credit report increase your risk of defaulting on a loan in the future. This is especially true if you take out a new mortgage. Because of this, Fannie Mae has a specific waiting period you must go through before you can secure a conventional loan. Compare Offers from Several Mortgage Lenders. The type of derogatory event that you experienced will determine just how long you have to wait to get a Fannie Mae loan. Keep reading to learn the average waiting time for the most common events. CHAPTER 7 BANKRUPTCY If you discharged your...

Read More

What is the Minimum Credit Score Needed for a Conventional Loan?

Your credit score could fall anywhere between 350 and 800. It’s safe to say, though, if you fall on the lower end, you’ll have a hard time finding a mortgage from any lender. That doesn’t mean you won’t find a loan, but finding a conventional loan would be next to impossible. According to Ellie Mae, the average borrower has a 752 credit score when buying a home with Fannie Mae financing. The average borrower refinancing a conventional loan has a 728 credit score. These are both a far cry from the minimum 350 credit score. Looking for Current Mortgage Interest...

Read More

Should you Buy or Build a House?

It’s time to take the plunge and buy your own house. It’s an exciting time! Before you start the process, though, you have to decide if you should buy or build a house. Looking for Current Mortgage Interest Rates? Click Here. There are many factors that go into this decision. Do you want to buy a home that’s ready to go or do you prefer to design your own house? Are you very picking regarding the features the home has or do you have some flexibility? These are just a few of the factors that go into the decision...

Read More

How to Properly Write a Letter of Explanation for a Mortgage

If everything on your mortgage application isn’t textbook material, it’s fairly certain that you’ll receive a request for a Letter of Explanation. Just what is this letter and how do you write it? Keep reading to learn the specifics you must know in order to get the mortgage approval that you deserve. WHAT IS A LETTER OF EXPLANATION? Simply put, a Letter of Explanation explains what your documents cannot do on their own. It’s a letter written by you explaining circumstances that the underwriter is questioning. Most often, it has to do with a gap in employment. But, that’s...

Read More