What are the factors that impact your credit score? Luchechko team is here to help you with any of your mortgage needs.

1. Payment History 35% Impact
Paying debt on time and in full has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Missing a high payment will have a more severe impact than missing a low payment, and delinquencies that have occurred in the last two years carry more weight than older items.

2. Outstanding Credit Balances 30% Impact
This factor marks the ratio between the outstanding balance and available credit. Ideally, you should make an effort to keep balances as close to zero as possible, and definitely below 30% of the available credit limit when trying to purchase a home.

3. Credit History 15% Impact
This portion of the credit score indicates the length of time since a particular credit line was established. A seasoned borrower will always be stronger in this area.

4. Type of Credit 10% Impact
A mix of auto loans, credit cards and mortgages is more positive than a concentration of debt from credit cards only.

5. Inquiries 10% Impact
This percentage of the credit score quantifies the number of inquiries made on a consumer credit within a six-month period. Each hard inquiry can cost from two to 25 points on a credit score, but the maximum number of inquiries that will reduce the score is ten. In other words, 11 or more inquiries within a six-month period will have no further impact on the borrower credit score. Note that if you run a credit report on yourself, it will have no effect on your score.

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Mortgage Rates Come Up


If your rates are below the current market rate and you thought you couldn’t refinance – think again. There are several reasons to refinance. In some cases, even if you get rates higher than your current rates you could still end up saving a ton of cash.

Below are top 3 reasons why you should refinance. Whatever your current situation is, chances are you can find at least one reason for your benefit.
Two caveats being – You should qualify and you should be comfortable with a higher payment.
Move to a Longer Term: Sometimes, it’s the other way around. You got into a short-term mortgage to save on interest costs. But because of changed circumstances, you are finding it difficult to service the steep payments. In that case moving from a 15 Year Fixed to a longer-term like 20, 25, or 30 Year mortgage may be a better idea. You will save on your monthly payment and get the breathing room that you are looking for.

Eliminate Mortgage Insurance (MI or PMI) Premium: Either your home prices have gone up or you have paid down enough on your principal or it’s a combination of both. You are at a point where you have 20% equity in the house or you can bring in some cash to do that. If that’s the situation and you currently pay mortgage insurance – it’s time to get rid of the pesky mortgage insurance.
Remember, as a married couple filing jointly, if you make more than $110,000 a year, the mortgage insurance premium is not even tax-deductible.
Get a Lower Rate: If none of the above reasons apply to you, it could be that you simply have a higher rate than the market. Maybe you had bad credit when you got the loan or you were on a sabbatical in a cave during the last 5 years. If that’s the case, you have the most uncomplicated reason to refinance. Simply ask for our best Luchehcko Mortgage team rate  and we will get you started on the refinance process.

When do I qualify for a mortgage to buy a house after short-sale?

A pre-foreclosure sale or short sale is the sale of a property in lieu of a foreclosure resulting in a payoff of less than the total amount owed, which was pre-approved by the servicer.

Qualifying for Conventional mortgage after Short-sale:

The following waiting period requirements apply for conventional mortgage backed by Fannie Mae

Fannie Mae recently updated its guidelines and established a standard 4 year waiting period for a Pre-foreclosure sale (short sale) or deed-in-lieu of foreclosure, with a 2 year waiting period permitted if a borrower has extenuating circumstances.