I specialize in Kentucky First Time Homebuyers FHA, VA, USDA & Rural Housing, KHC and Fannie Mae mortgage loans. I have helped over 1300 Kentucky families buy their first home or refinance their current mortgage for a lower payment; Kentucky First time buyers we still how available down payment assistance with KHC. Free Mortgage applications/ same day approvals. Web site is not endorsed by the FHA, VA, USDA govt agency. Text/call 502-905-3708 kentuckyloan@gmail.com NMLS 57916 NMLS 1738461
Kentucky First Time Home Buyer Programs For Home Mortgage Loans: 5 Things to Know For First Time Home Buyers in Ken...
Kentucky First Time Home Buyer Programs For Home Mortgage Loans: 5 Things to Know For First Time Home Buyers in Ken...: Kentucky First Time Home Buyers Questions Answered Below: 1. Do Mortgage Rates Change Daily? Just like the gas prices at the ...
Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: What are the requirements to buy a house in Kentuc...
Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: What are the requirements to buy a house in Kentuc...: Credit Score and Income Requirements to Buy a Home in Kentucky in 2019 KENTUCKY CONVENTIONAL FIXED RATE MORTGAGES Get you...
Fill out my form!
Fill out my form!
Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Zero Down Kentucky Mortgages
Louisville Kentucky Mortgage Lender for FHA, VA, KHC, USDA and Rural Housing Kentucky Mortgage: Zero Down Kentucky Mortgages: First Time Home Buyer Louisville Kentucky Mortgage Programs Conventional Insured by approved mortgage insur...
Credit Inquiries--How much do they effect my score?
Credit Inquiries Are A Formal Process
A "credit inquiry" is a formal request to review a person's credit report.
Credit inquires are grouped with other traits into a credit-scoring category called "New Credit". New Credit represents 10 percent a person's complete credit score. On the scale of 300-850, therefore, credit inquiries represent a tiny portion of a maximum of 85 points to a FICO.
There are many times of credit inquiries, but really only 4 of the set can impact a person's credit score:
1. A credit check for a mortgage loan
2. A credit check for an auto loan
3. A credit check for a credit card application
4. A credit check for a store credit card, or consumer loan
These 4 types are singled out because, in each case, the inquiry is made by the applicant in order to get access to more debt. Because extra debt increases the probability of default, credit inquiries can sometimes foreshadow trouble.
Even then, however, the risk of default varies by application type.
For example, credit card applications can be more damaging to a credit score than a mortgage application. This is because credit card debts tend to revolve higher over time versus a mortgage which eventually pays down to $0.
So, all things equal, a credit card application will harm your credit score more than an application for a home loan.
A Credit Inquiry Lowers Your FICO By 5 Points
When compared to the other credit scoring elements, Credit Inquiries is a relative nothing.
In the official FICO scoring model, Payment History and Credit Utilization account for 65% of a score, combined, and the amount of time during which you've had credit to your name accounts for 15%. These three areas are over-weighted because the bureaus are more concerned with what you've already done with your credit versus what you might do with more of it.
Your credit past is the best clue to your credit future and it's one of two reasons why it's okay to give your social security number to as many lenders as you want. The impact of a credit inquiry is tiny next to the value of being a Model Credit Citizen.
A mortgage credit inquiry is estimated to lower a credit score by just 5 points.
Unfortunately, we'll never know for sure because the very act of examining the credit score causes it to move. In Chemistry, this is called the Heisenberg Principle. On MTV, it's called The Jersey Shore Syndrome. Put a camera on something, and it changes.
The Credit Bureaus Don't Hit Your FICO Twice
The second reason you should shop around with lenders is that -- unlike applying for multiple credit cards -- applying for multiple mortgages won't count as multiple, consumer-initiated inquiries. This is a common thing.
You might apply for 5 credit cards and use them all. You're not going to be approved for 5 mortgages.
As such, the credit bureaus have made it formal policy to permit "rate shopping". Talk to as many lenders as you want in a 14-day time frame; have your credit checked as often as you'd like; compare rates and fees. All of the inquiries will be lumped into a single application.
It's good for you and it's good for the bureaus. Your credit scores stay high and TransUnion, Equifax and Experian collect more fees from the banks.
Advice From The Credit Bureaus On Getting Low Rates
To promote rate shopping and to lessen The Fear of Credit Inquiry, the people behind the FICO brand spell out for you the best way to get the best mortgage rates possible:
1. If you want the best rate, you should "shop around"
2. Limit rate shopping to 14-day timespan to keep your credit scores high
3. Mortgage lenders can't give accurate rate quotes without a credit score so give up your social security number
Metaphorically, not letting your lender see your FICO is like not letting your doctor check your blood pressure. You'll get a diagnosis when the appointment is over -- it just might not be the right one.
Joel Lobb
Senior Mortgage Loan Officer
Fill out my form!
Kentucky USDA Rural Housing Loans : USDA Mortgage Loans in Kentucky Are Currently Shut...
Kentucky USDA Rural Housing Loans : USDA Mortgage Loans in Kentucky Are Currently Shut...: Kentucky Rural Housing Loans issued by the USDA During the government shutdown, Federal Government Partial Shutdown 2019 and...
Understanding Your Kentucky VA Home Loan Benefits
Fill out my form!
Kentucky VA Home Loan Lender
Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
email: kentuckyloan@gmail.com
Debt-to-Income Ratio: What It Is and Why You Should Care for A Kentucky Mortgage Loan
Think back to the last time you financed a purchase — be it a home, automobile, or what have you… You may remember having heard the term “debt-to-income ratio.” Today I want to spend some time going over exactly what this ratio is, and to also touch on how it can effect your personal finances.
What is your debt-to-income ratio?
Commonly referred to as your “DTI,” your debt-to-income ratio is a personal finance benchmark that relates your monthly debt payments to your monthly gross income.
As an example… Let’s say that your gross monthly salary is $5,000 and you are spending $2,800 of it toward monthly debt payments. In that case, your DTI would be an unhealthy 56%.
This version of your DTI is sometimes referred to as your “back-end” DTI. This is often broken down further to give a front-end debt-to-income ratio, which is a component of your back-end DTI.
How to calculate your front-end DTI for a Kentucky Mortgage Loan Approval
Your front-end DTI is calculated by dividing your monthly housing costs by your monthly gross income. Front-end DTI for renters is simply the amount paid in rent, whereas for homeowners it is the sum of mortgage principal, interest, property taxes, and home insurance (i.e., your PITI) divided by gross monthly income.
From above, if that $2,800 in debt payments is attributable to $1,500 in housing costs and $1,300 in non-housing costs, then your front-end DTI is $1,500/$5,000 = 30% (and your back-end ratio is still 56%, as calculated above).
How lenders use your DTI for a Kentucky Mortgage Loan Approval
Kentucky Mortgage lenders typically use DTI (along with other variables) to determine whether or not you qualify for a loan, and to help determine your Kentucky mortgage rate. A high front-end DTI raises red flags with lenders because it is commonly associated with borrower default. In fact, reducing front-end DTI to reduce the risk of homeowner default was one of the main objectives of the loan modification programs introduced by the government in 2009.
There are specific limits for DTI that are used as cut-off points when evaluating borrowers. Current DTI limits for conventional conforming mortgage loans are typically 28% on the front end and 36% on the back end, though these limits are slightly higher for government subsidized Kentucky FHA loans.
While there are certainly other factors to consider w
Debt-to-Income Ratio: What It Is and Why You Should Care for a Kentucky Mortgage Loan for Kentucky Mortgage Loan Approval
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
