TexasLending.com: Tips on Improving Your Credit Score



TexasLending.com emphasizes to clients that a person’s credit score is not a reflection on them personally. In light of the country’s recent economic woes, the team at TexasLending.com has seen an increase in low credit scores. This has led many individuals to ask how they can work to improve their credit scores. While the return to a good credit rating takes work, as TexasLending.com tells clients, it’s definitely doable by following a few simple steps.

Upon visiting a mortgage lender, explains TexasLending.com, one of the first things the loan officer will normally do is pull a credit report. This gives the loan office an idea for whether or not the interested homebuyer will qualify for a mortgage loan. Often when that credit report returns a negative response, many loan officers can only offer a few cursory tips, but TexasLending.com loan officers will try to help the client more comprehensively. If a client wishes, TexasLending.com can run a computer simulation model, which will not only determine what action can be taken to improve the client’s credit score, but also determine how much of a difference that action will make in the client’s qualification for a better interest rate.

One of the biggest challenges for TexasLending.com clients in cleaning up credit is paying bills on time without fail. TexasLending.com has a few suggestions for those individuals, including setting up payment reminders or having payments automatically deducted from a bank account. If organization is the challenge, these steps can make a big difference in cleaning up credit.

If a consumer has more money going out than coming in each month, TexasLending.com recommends setting a budget that cuts out as many extras as possible. As tough as it may be, consumers might also consider getting a second job or working overtime. Once a consumer is ready to begin reducing his or her debt, TexasLending.com recommends tackling the debt in the order of the highest interest rate, one bill at a time.

In the past, consumers were told to cancel as many credit cards as possible prior to seeking a home loan. That has changed in recent years, TexasLending.com states, as consumers who manage multiple credit cards responsibly are seen as less of a credit risk than someone who has no credit cards at all.

TexasLending.com also recommends that clients keep a small balance on each credit card. When a customer completely pays a card off, TexasLending.com has found that cards which are completely paid off can negatively impact a score. However, credit bureaus also appreciate a large gap between the total credit line and the balance, so low balances are best, adds TexasLending.com.

Because each credit bureau scores differently, TexasLending.com advises working with a loan officer to better understand what you can do to improve your score. The loan officers at TexasLending.com will look at your credit score to help you determine the best way to maximize your chances of getting your dream home.

For more information, visit Texas Lending online at www.texaslending.com.

4100 Alpha Rd.
Dallas, TX  75244
NMLS# 137773


Texas Lending (TexasLending.com) Discusses Reverse Mortgages

Texas LendingTexas Lending (TexasLending.com) handles more than 3,000 loans each year, and these include a wide variety of mortgage loan issues. Working directly with clients to explain all of their options is important to Texas Lending CEO Kevin Miller. He founded TexasLending.com with the vision of providing personalized service to each customer. Today, Texas Lending speaks to A Gathering of Experts about a topic that is drawing quite a few questions from today’s baby boomer generation–reverse mortgages.

A Gathering of Experts: We hear quite a bit about reverse mortgages. What does Texas Lending tell its customers about this type of loan?

Texas Lending: As baby boomers consider their options, reverse mortgages are a great tool for many. Texas Lending helps counsel all of our clients toward the best option for their own personal needs.  For some clients, that best option is a reverse mortgage.

A Gathering of Experts: Explain the basics of a reverse mortgage.

Texas Lending: A reverse mortgage allows homeowners over the age of sixty-two to receive their equity, either in lump sum form or as a monthly payment, or a line of credit, or a combination of all these options. Texas Lending often recommends reverse mortgages as an option for older homeowners who are having trouble making their monthly payment and cannot refinance using traditional means.

A Gathering of Experts: When someone contacts Texas Lending about reverse mortgages, will they be connected with a government-approved counselor?

Texas Lending: Yes. Texas Lending provides our clients with an expansive list of HUD approved counselors and the client chooses the one best suited for their location, timing and budget.

A Gathering of Experts: Could this be an option for seniors who are in danger of foreclosure?

Texas Lending: Yes! Because of the current state of the real estate market, many seniors can no longer afford their house payment. The Reverse allows the senior to payoff the loan with which they are struggling.

It is important to note,  some struggling seniors don’t have the option of selling their home and moving somewhere cheaper because they are underwater on their mortgages—meaning they owe more than the appraised value of their home. Texas Lending has been able to help some clients payoff these underwater mortgages using the Reverse as the tool to do it.

A Gathering of Experts: So when someone is approved for a reverse mortgage with Texas Lending, they might end up with no house payment.

Texas Lending: Absolutely! They definitely end up with no requirement to make a house payment. They do, however, have to continue to pay their property taxes and homeowners insurance.

If a client wants to make payments on the Reverse, they certainly can. Some seniors want a traditional refinance and cannot qualify due to today’s more stringent credit standards. The Reverse credit criteria are simpler. The senior may find this loan suits their needs and they can choose to repay the loan just like a traditional loan. It is their decision entirely!

A Gathering of Experts: We’ve heard there are some drawbacks to the reverse mortgage.

Texas Lending: Drawbacks? No. However, a reverse mortgage may not be for  everyone. We will make certain that applicants understand all of the terms before they enter into this type of mortgage. After working with a Texas Lending Consultant, an applicant will have all of the information they need about their available options in order to make an informed decision.

For more information, visit Texas Lending online at www.texaslending.com

4100 Alpha Rd. Suite 400
Dallas, TX 75244
NMLS# 137773