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Stop Making Mortgage Payments?…Don’t Make A Seller’s Mistake!
Posted by Kevin Kueneke | Leave A Comment »
The following is based on an actual conversation I had with a seller recently…
Question: I just accepted an offer on my home, can I stop making the mortgage payments?
Answer: NO!!!! If you are selling your home and you are concerned about your credit, it is in your best interest to continue paying all mortgage related debt on that property in a timely manner. Just because it will be paid off soon is no reason to stop making the payments. Becoming delinquent can cause several problems: 
- Once a mortgage loan becomes delinquent, payment and payoff processing is handled by a different department, namely the debt collection department. This can lead to additional fees and days added to the transaction.
- The most important credit item that lenders review (on par with the credit score) is housing payment history. Mortgage late payments can ruin your credit and make it difficult if not impossible to buy your next home. This can be an issue even if you only plan to rent.
- “I’m already approved for my next home, why should I worry?” Lenders have been known to re-pull credit and/or request an updated mortgage rating prior to the close of escrow especially if your file is a little on the older side.
- “My lender has several thousand dollars in my impound account, they can just use that to cover my payment.” Wrong. Lenders internally treat your account as two accounts: the actual loan and the impound account. The impound account is not used to subsidize shortages from the regular monthly payment.
Bottom line is that if you want to protect your credit, continue to pay your mortgage on time.
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Concerned About Your Listing Appraising?
Posted by Kevin Kueneke | Currently 1 Comment »
As a Loan Officer with CW Mortgage who works daily in three large Real Estate offices, I hear agents speak of the challenges they face in today’s market on a regular basis.
Lately, I’ve heard several agents talk about their concern for some of their listings actually being able to appraise. This concern is not due to the condition of the property, but to the difficulty in obtaining comparable sales. And unfortunately some of these properties are sitting.
A solution to this concern is to have an appraisal completed by a licensed appraiser. A good appraiser will provide a property value based on the numbers, not on emotion, which is what bank underwriters do. Difficult sellers that refuse to lower their expectations can see an unbiased opinion of what the true value is and may become more willing to listen to your expert opinion.
Does this solve all problems? Of course not. But if you have a property that has been on the market for a while, this could prove to be a helpful tool to push the deal towards closing. Should you have any questions or if you would like to pursue this idea further on one of your properties, please call or email me. I have a great local appraiser who charges a reasonable fee.
Related Posts: CW Mortgage, Home Loans, Mortgage News
What You Can Do To Improve Your Credit
Posted by Kevin Kueneke | Leave A Comment »
Credit scores, along with your overall income and debt, are big factors in determining whether you’ll qualify for a loan and what your loan terms will be. So, keep your credit score high by doing the following:
1. Check for and correct any errors in your credit report. Mistakes happen, and you could be paying for someone else’s poor financial management.
2. Pay down credit card bills. If possible, pay off the entire balance every month. Transferring credit card debt from one card to another could lower your score.
3. Don’t charge your credit cards to the maximum limit.
4. Wait 12 months after credit difficulties to apply for a mortgage. You’re penalized less for problems after a year.
5. Don’t order items for your new home on credit – such as appliances and furniture – until after the loan is approved. The amounts will add to your debt.
6. Don’t open new credit card accounts before applying for a mortgage. Too much available credit can lower your score.
7. Shop for mortgage rates all at once. Too many credit applications can lower your score, but multiple inquiries from the same type of lender are counted as one inquiry if submitted over a short period of time.
8. Avoid finance companies. Even if you pay the loan on time, the interest is high and it will probably be considered a sign of poor credit management.
*This information is copyrighted by the Fannie Mae Foundation and is used with permission of the Fannie Mae Foundation. To obtain a complete copy of the publication, Knowing and Understanding Your Credit, visit www.homebuyingguide.org.
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