HomeTraq University

Whether you are a millennial just starting to think of possibly applying for a loan, or if you are a baby boomer getting ready to refinance your 3rd house, its always good to keep track of what is going on with your credit and your credit score.  Here are some quick highlights as to why it is so important and how you can monitor one of your most important assets. Credit Report Purpose Provides a history of your credit use to prospective lenders Allows lenders to assess risk of extending credit to you Used for all forms of credit, including apartment rental, credit cards, student loans, car & home loans, etc. Establishing Credit Apply for credit card with a reasonable limit Buy something for approx. $100, and pay back in 2 months Do it again, and make sure to pay on time! 4 trade lines will be needed to obtain a mortgage 12 months of activity are needed to develop credit history What Information is Included in a Credit Report? Personal Info: name, address, da...

Because they are government-backed, Federal Housing Administration (FHA) home loans have attractive interest rates and less stringent qualifications. Loan applicants must meet credit-score and down-payment requirements, and show proof of employment and a steady income. An appraisal of the home by an FHA-approved appraiser is also required.  Following are five features of FHA loans first-time homebuyers should consider while weighing their financing options. More flexible credit guidelines give more purchase power  Low Down Payment - as little as 3.5% down on single family residence, 2-4 units and FHA approved condominiums  100% gift allowable for down payment  Lower credit requirements. 580 minimum FICO credit score.  Competitive market rates  No income restrictions  Limited tradelines needed  Higher debt-to-income ratios approval  Shorter waiting period for major credit events like bankruptcy FHA loans are Transferable to p...