This client would like a home loan refinancing package for his family home. He lives in Redding California and as
it turns out his credit rating is not fair, he does in fact have a bad credit rating. There are several reasons for his bad credit rating . There is the judgement issue the client indicated in his application, however he has also been slow at paying his credit card balances which also contributes to his bad credit rating. He did not mention this in his application.
The income level of this family appears to be sufficient to support a mortgage of the requested size, however he may not be able to qualify for a competitive interest rate. Most banks will only offer their lowest rates to individuals who have excellent credit ratings. Consumers who have bad credit ratings for whatever reason usually must pay higher rates. We have illustrated this in the calculations at the bottom of this post to provide some idea of the impact.
Having a bad credit rating could cost this client as much as $170 more a month in monthly payments on his mortgage. This client should discuss some of the details surrounding his judgement with the bank and he should also pay more attention to paying his bills on time so that it does not negatively affect his credit rating.
(Continued)
Our client would like to be approved for a home mortgage loan from a Reputable Lender in the San Bernardino 
area of California. They have just sold their home, which closes in 2 months time and they need to find a place to live within the next two months. They could have saved themselves some time, if they had gone through the process of being pre-approved for a mortgage so that they would be able to place a firm offer on a home instead of a conditional offer.
This client appears to be managing his finances well and although they do not have a large down payment, they have substantial income which can easily carry the mortgage payments on a home mortgage loan. There are many reputable lenders in the San Bernardino area and we are confident that they will be able to be approved for a mortgage.
Regarding their credit rating, they also appear to have an excellent credit rating, since they are pretty careful about paying their monthly bills, loans and credit cards. They should not only be able to find a reputable lender, they should also be able to find competitive rates as well from several lenders in the area.
(Continued)
Monday, December 26, 2011
This client is in a tough sport. Due to a conflict that he had with a credit card company, he now has a really bad
credit rating. One wonders if he would have been better off to have just paid the amount in dispute and moved on to protect his credit rating. He has really bad credit and is applying for a home mortgage refinance loan of $95,000 and lives in in San Diego California. In addition he wants the lowest APR that is available.
We do not know all of the details regarding his dispute with the credit card company, however ignoring his credit rating and looking at all of the other factors for a moment, this client is a good candidate to be approved for the home mortgage refinancing loan that he has applied for. The monthly payments are well within his ability to pay based on his salary and he has a good job that pays well. He also has seniority with the company and is well respected.
The difficulty arises when you look at his credit rating. Although according to the client, it is not due to lack of payment, but rather based on a dispute he had with the credit card company. The credit card company did what they were supposed to do. They had a client who was not making payments and were forced to report the non payment to the credit agencies. Later, the issue was resolved, however it is now too late to remove the black mark against him and correct his credit rating.
(Continued)
Monday, December 12, 2011
This applicant has applied for a subprime mortgage loan for the amount of $250,000. He lives in Long Beach Ca 
and has been recently laid off from the city of Long Beach. the city is conserving cash and reducing expenses in an effort to avoid increasing taxes. Together with his wife, his family income is around $65,000 due to his perseverance in finding part time jobs and his wife’s income.
It is unlikely that this applicant will be approved for a subprime mortgage loan. Prior to 2008, many people were being approved for these types of loans to help them purchase a home. The subprime market was really aimed at folks who might have had bad credit, lower income or a history of not being able to pay their bills at the end of the month. Since 2008, this program has been curtailed due to the market troubles and the housing downturn we are all aware of and now it is much more difficult to get a subprime mortgage loan.
(Continued)
Monday, November 28, 2011
This client has a poor credit rating and he is applying for a a jumbo home loan mortgage of $600,000 to finance
the purchase a home he and his wife would like to buy in Modesto , California. This is a rather large loan and most clients must have excellent credit ratings in order to qualify for such large mortgages. This client admits that they have a poor credit rating. The monthly payments on a 30 year mortgage term at the available interest rates are almost $3000 a month which is much more than what banks will loan to a client with the income they are currently making. On this basis the loan would not be considered and would be turned down!
The client has indicated that he has an additional $200k in a GIC which will mature in six months time and which he is prepared to place against the mortgage, reducing the overall loan down to $400,000. If this GIC were available today, it would have a dramatic impact on the monthly payments. First the home loan mortgage would not fall into the jumbo loan category and would qualify for a lower interest rate. Secondly the payments would now be based on a much lower amount and would come to less than $2000 per month. At this level, these clients would qualify for a home loan mortgage , subject to the issue of having a poor credit rating.
(Continued)
Monday, November 14, 2011
Our client is a Grounds Manager at a local golf course and is applying for a home mortgage refinance loan to 
allow him to consolidate a car loan, and several credit cards as well as funds to remodel and update his home. He lives in Sacramento California and would like to obtain the lowest rate possible. He also stated that he plans to repay his credit card debt within the next three months whether he is approved for the loan or not. He did not state the interest rate he is paying on his car loan. This may or may not be a good idea to include the car loan balance in his home mortgage refinance loan application depending on the current interest rate that he is paying. If he is paying a lower rate, he may want to stick with the current loan and not repay it from the proceeds of refinancing.
Although he indicated that he wanted a quick answer to the application, this is more to allow him to finalize his plans for remodeling than it is to avoid high interest rates or penalties. The client does have sufficient income to support the approval and carry the payments of the mortgage amount and most banks would likely approve his home mortgage refinance loan application.
(Continued)
This applicant is hoping to be approved for a bad credit home loan for $200,000 to refinance his existing 
mortgage, pay off his credit cards and update his home as well as complete a number of repairs that are needed around the home. His credit is bad and he will have a difficult time being approved for a mortgage of this size given his income and his dependence on a small business which he has admitted has not done well during the depression.
We do not think that this client should take on so much additional debt given the circumstances that he and his spouse find themselves in. They are fortunate in that they both have jobs and they have taken steps to make sure that their income is diversified instead of depending on the store for their entire income.
Sales at the store appear to be improving, however as everyone knows the US is recovering very slowly from the recession and most people are trying to avoid taking on any more significant debt. Fortunately for this couple they purchased their home well before prices spiked in real estate and as a result they still have a great deal of equity left in their home. Repairs should be completed slowly and as they have the funds to pay for the repairs and upgrades. Taking on more debt right now for this couple might not be the best move.
(Continued)
This applicant is hoping to be approved for a home equity consolidation mortgage in Stockton, California. The 
amount he is planning to consolidate is $120,000 which would allow him to consolidate his existing mortgage, his credit cards and a car loan. We fully expect that this applicant will be approved for this consolidated mortgage however we question whether he should include the car loan in this deal.
He currently enjoys a low interest loan on the car that was provided by the car company that he bought the car from. Although he did not indicate what that interest rate was, it is unlikely that it will be the same as or higher than the interest rate on the consolidation loan. He will end up paying a higher interest rate as a result, so he may not want to consolidate the car loan with this particular mortgage. This would change his consolidation loan requirement from $120,000 to $105,000 and decrease his monthly costs by almost $100 per month as per the calculations at the bottom of this post. The client will have to compare his monthly interest costs under these scenarios to help him make a decision.
(Continued)
This home owner is looking to refinance his existing mortgage and consolidate his mortgage and credit card debt 
in to one low interest mortgage for a total amount of $70,000. He lives in Bakersfield California and works as a sales person for a local sporting goods firm that sells boats and ATV’s and other associated gear that most people find useful in these sports.
He has worked at this location for 5 years and makes somewhere between $50,000 and $80,000 per year depending on his commission sales. He also has an excellent credit rating. From the banks perspective there should be no problem approving this mortgage. At even the higher monthly rate calculated over a 15 year term he is still within the standard ratios for consumers carrying a mortgage using his $50,000 income level. Every year he makes more than this it is really like a bonus for him and he has extra cash to pay down his debts.
We applaud his plan to consolidate and refinance his debts. At 20% rates on his credit cards, he is paying much more interest than he really should. He will save a great deal and if he decides to refinance on a 15 year term he could be mortgage free within 15 years.
(Continued)
Monday, September 19, 2011
This client needs a low interest mortgage loan to purchase a home in Ventura County. They have been 
transferred into the area and have placed an offer on a home, conditional on finding financing from a local bank. They have $300,000 as a down payment from the sale of their current home and require a low interest mortgage loan for $400,000 to complete the financing on this home. The client works for an insurance company, makes excellent income and also has an excellent credit rating. Based on information provided they have no other outstanding debts and pay their bills on time, making them an excellent credit risk.
In addition, based on his income, even at the highest interest rate calculated on our table at the bottom of this page, the client will only be consuming 17% of his income which is well below the level established as a guide by many financial institutions. It is important to keep this in mind by all borrowers when they are applying for a low interest mortgage. Payments above 30% of a persons income are often frowned upon in today’s conservative financial environment.
(Continued)
