The Mortgage Files

Nationally syndicated mortgage news and advice from Senior Loan Officer Scott Sheldon.

Should I Be Concerned About A Light Documentation Loan Offer?

By Scott Sheldon / March 26, 2014

Absolutely yes, here’s why… On January 10, 2014, qualified mortgages took shape for the entire mortgage industry mandating lenders specifically document of borrowers ability to repay. Because of of these new regulations, if you receive a mortgage quote offering less the normal documentation such as not needing a pay stub for example if you are…

How To Document A Foreclosure, Short Sale Or Bankruptcy For Mortgage Lending

By Scott Sheldon / January 23, 2014

Getting a mortgage after foreclosure, short sale, or bankruptcy, or even a combination of the two is absolutely doable. However depending on the credit circumstance different documents could be needed for properly documenting the previous  derogatory credit item. Here’s how to properly document any one of the big three credit issues Foreclosure- can be documented…

Can I buy a house 1 year after a short sale?

By Scott Sheldon / December 20, 2013

Yes under the FHA Second Chance Program. The program allows a home buyer to repurchase just 12 months after a foreclosure or short sale. In order to qualify, there must be a documentable loss of income for a minimum of six months and/or supporting documentation showing a one time unforeseen economic hardship that resulted in…

Why Is My Mortgage Rate On My New Loan So High?

By Scott Sheldon / December 10, 2013

In short risk-based pricing, the higher the risk the lender incurs the higher the mortgage rate you will be quoted on the new mortgage. This  is especially true with conventional mortgages, not so much on the FHA variety. FHA unlike conventional loans does not discriminate to the degree conventional does based upon credit score. Following…

How do collections affect my chances of getting a mortgage loan?

By Scott Sheldon / November 16, 2013

Collections negatively affect your chances of getting a mortgage loan, but it’s not impossible to be successful on getting approved for a mortgage despite having previous bad debts. When you apply for a mortgage loan, the lender pulls your credit report and will know in 20 seconds what your credit scores are and how any…

My credit score is 620. Do I even have a chance of buying a house? Another Lender told me 640.

By Scott Sheldon / October 2, 2013

Yes you do have choices. You do not necessarily have to have a credit score of 640 or higher, but it is helpful. Typically, loans for borrowers from 620-639 cost more in terms of a pricier interest rate them loans for borrowers who have better credit scores. Bottom line, if you have the income to…

How Does Having a Co-Signor Help Me Get A Mortgage?

By Scott Sheldon / July 29, 2013

Yes, having a cosigner in most situations does help you qualify for a mortgage as long as the cosigner has additional income used to offset the new housing payment liability. Consumers seeking to qualify for mortgage loan financing can use the benefit of someone else’s income to help them purchase a home or refinance a…

Can I get pre-approved without having my credit ran?

By Scott Sheldon / July 25, 2013

In short the answer is no, but for a few reasons. A credit report is only as good as that moment in time that it is obtained  by the creditor, mortgage company, bank etc.  The Fair Credit Reporting Act & Home Mortgage Disclosure Act  both prevent a lender from originating a new loan with another…