FHA and Investor Specialist

With the tightening of secondary marketing standards and demise of numerous mortgage companies, the mortgage business has lost approximately 40,000 jobs as of late.  In my opinion, this creates a great opportunity for mortgage reform as far as licensing of Loan Officers.  Now would be a great time to make a national exam similar to the Series 7 Exam for Stockbrokers in order to become a Mortgage Loan Officer.  With this exam, there could be a background check.

I think this would help to clean up the mortgage industry, at least on the retail end of things.  

     If you are looking to purchase a home in the near future, there are some basics things to do and to avoid doing in order to keep your credit rating intact.  With credit scoring often determining the interest rate at which you can borrow money, keeping your credit rating as high as possible can save you thousands of dollars annually.  Here are a few quick basic tips:

            -Stay current on your existing accounts.  Your payment history is the most important part of your credit rating.

            -Don't max out on any existing credit cards.  Other than being late, having credit over your credit limit is the quickest way to reduce your credit score.

            -Don't consolidate credit cards into 1 account at a teaser rate.  Credit scoring looks favorably on credit card balances being low relative to your credit limit.  Consolidating cards to one account will show a higher balance to limit ratio and you could be penalized.

            -Don't pay off any old collection accounts.  Collection accounts over 2 years old have little impact on your credit rating.  Paying off an old collection account will change the last activity date of your credit and potentially lower your score.

            -Don't open any new accounts, particularly "1 year same of cash" type store accounts.  Wait until after closing for household purchases such as furniture.

     Always be sure to meet with a mortgage professional to get pre-approved as well.  Regardless of what stage in house hunting you are in, it is a good idea to be sure you are looking in the proper price range for your budget.

Michael Byrne, Mortgage Banker,  www.mortgageprosforum.com  and www.cafepress.com/buyfromclarence