There’s no denying the homebuying process is exciting. Sure, it can be stressful, and it might make you anxious at times, but the thought of starting over with a clean slate in a new location is enough to make anyone thrilled for their future. Imagining all the new furniture that will fill the home and put a smile on the face of every family member.
Maybe it’s a movie-theater-style reclining leather couch or a smart refrigerator with a touchscreen exterior that’s caught your eye. Either way, that’s a fun, and big, transaction. One that could be too big if your loan hasn’t closed yet.
Just like buying anything on credit before your loan hits the closing table, it’s harmful to your loan if you finance new furniture before completing the final step in the mortgage process. In fact, there are a few different reasons why financing furniture early is detrimental to your loan.
It Changes Your Credit
Occasionally, credit scores are reverified by th ...

You probably know that a credit report is a detailed history of your debt management and the status of your credit accounts. But have you ever looked at your credit report? You should! Monitoring its data will help you ensure your credit history is correct, achieve the highest credit score possible (and therefore the best interest rate!), and stay safe from identity theft.
You actually have three credit reports, one from each major credit bureau: Equifax, Experian, and TransUnion. Credit bureaus (also called credit-reporting agencies) compile pieces of your financial background like accounts and payment history, as well as public records such as bankruptcies and tax liens. They sell that information to lenders and others who use it to determine whether to give you a loan, lease, job, or other financial product.


Expert Tip


Credit bureaus do not make any lending decisions. They only gather your financial information.







You may notice that some details in your ...

Let’s face it, life doesn’t always go our way. Whether it’s an unexpected job loss, a medical emergency, or simply mismanagement of debt, financial consequences like collections, bankruptcy, and liens can seriously impact your credit and delay your getting a mortgage. But there is hope for getting past them. Here’s a closer look at these obstacles:
Collections
Most lenders will try to collect debts like mortgages, student loans, or credit cards up until 120-180 days late. Then they will write off the debt and send it to a third-party person or agency to collect it, and that’s when it hits your credit report. The longer a payment is past due, the more it can hurt your credit score. With serious delinquencies, you have three options:



If the information is inaccurate, you can file a dispute.


Wait seven years from the original delinquency date (the date the debt has gone past 120-180 days) for the information to drop off your credit report.
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Crashing credit, buying boats, co-signing for Cousin Eddie... Few mistakes are more cringe-worthy to a lender than when a client, well on their way to getting a mortgage, makes an impulsive decision that derails their loan approval. Here are ten “don’ts” for you to remember as you wait on those beautiful words: “clear to close.”
The Ten Top “Don’ts”

1. Don’t change or quit jobs or become self-employed. Lenders require steady employment and income consistency. Change jobs after you change mailing addresses.

2. Don’t buy a car (or boat, or RV, or four-wheeler…). Unless you want to be living in it, don’t purchase a vehicle while buying a home.

3. Don’t purchase any big-ticket items. Similar to vehicles, wait until after you own the home to buy that furniture or fancy sound system.

4. Don’t use credit cards or be late on any payments. This double-whammy hurts you both w ...

The Federal Reserve announced it would raise short-term interest rates a quarter-percentage point and signaled it could lift them at a slightly more aggressive pace in coming years. Mortgage Rates immediately increased after this announcement. Additional fed rate increases throughout the year could push mortgage interest rates as high as 5% by year’s end.
How do rising mortgage rates affect your purchase power?
Buyers need to know what it really means when mortgage rates are rising. Purchase Power is the price of a home you can afford and is directly impacted by current mortgage rate when your purchase. Here is an example to explain…
If you qualify for a maximum monthly payment of $1,200 and interest rates are at 4.5%, then you would have the Purchase Power to buy a home up to $240,000.
Sales Price of $240,000
4.5% interest rate
$1,196 per month
30-year fixed rate
20 percent down payment
Loan amount of $192,000
What happens with a 1% increase in interest rate?
t ...