increasing your credit scores part 2

DDA Mortgage • September 13, 2021

3 things you can do to improve your credit scores, Mortgage Broker Largo.

When buying a house, a 30 point difference in your credit score can change your rates, determine loan terms and type, and can even influence your ability to win in a multiple offer situation.


Here are three things you can do to help boost your credit score and help you qualify for the best loan.



Student Loans, How They Affect Your Debt-to-income Mortgage Calculation


As a friend of ours always says, "you can pay me now, or pay me later." If you defer your loans you debt continues to grow. As your debt grows, you debt-to-income level also changes.


What does this mean for you and your mortgage qualification? As a broker, we take .5% of your total student loan debt to determine your monthly obligation. If you have $100,000 in loans, we assume you will have a monthly payment of $500.


The good news. If you start to payback your loans and go on an income-based repayment plan, we can use your actual payments. I recently qualified a couple where the wife had a debt of $240,000. Yikes! I told her to start repaying her loans ASAP. She was able to start an income-based plan of about $300/mo, and after three months, I was able to pull her actual payments and qualify them for a $380,000 loan. If you have student loans, and would like us to run your numbers, start an application and we can review everything with you.



Medical Collections, Mortgage Qualification, And Credit Scores


Medical collections can be tricky. You would think, "I payoff the debt, and my credit score goes up." Unfortunately, this is not how it works.


You need to do two things. 1st, pay off the loan. 2nd, you need to ask for a deletion letter. A deletion letter lets the credit burrows know everything is in good standing. This helps improve your credit score and helps you qualify for a mortgage.



30 Day Late, Make A Call And Get It Removed


Most credit card companies will remove late notices or 30 day lates if you simply give them a call. We know, this one sounds too easy, but it is true. With most credit cards all it takes is identifying a mark on your credit report, calling, being polite, and asking them to remove it. As long as the card is in good standing, they should take care of it for you.



If you are thinking of buying a home, it is critical that you have the highest credit score possible to get the lowest interest rate available. The best way to improve your score is to talk to one of our mortgage specialists. We can look at your credit and let you know how to improve your score.


If you want to buy a home, start your application, and get pre-qualified.



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Wade Pfau: how market volatility could renew reverse mortgage discussion

By Didier Malagies • April 15, 2025
Wade Pfau, a leading voice in retirement income planning, has long advocated for the strategic use of reverse mortgages —and current market volatility could reignite interest in this often misunderstood tool. 🔁 Why Market Volatility Renews Reverse Mortgage Talks In times of market downturn, retirees face sequence of returns risk , meaning early losses can severely impact the longevity of their portfolio. Pfau suggests that reverse mortgages , particularly Home Equity Conversion Mortgages (HECMs) , can act as a buffer asset to avoid selling investments at a loss. Here's how: During market dips , retirees can pull funds from a reverse mortgage line of credit instead of their investment accounts. This gives their portfolios time to recover before resuming withdrawals. Result : More sustainable income and potentially greater long-term financial security. 🧠 Shift in Strategy: Not Just a Last Resort Pfau argues that reverse mortgages should be considered early in retirement planning , not just as a last-ditch effort: Opening a HECM line of credit early can grow over time due to the compounding credit line. Provides flexibility and tax-efficient access to funds. Helps retirees coordinate income sources between portfolio withdrawals, Social Security, and home equity. 👓 Changing Advisor Perspectives Financial advisors—previously skeptical—are beginning to see reverse mortgages in a new light: Volatile markets have prompted a more open-minded view among planners. More are incorporating reverse mortgages into holistic retirement income strategies . Bottom line : Market volatility doesn’t just threaten retirement—it also opens the door to rethinking traditional strategies . As Pfau puts it, home equity is too significant a resource to overlook, and when used wisely, reverse mortgages can enhance retirement resilience

Questions frequently asked about on job history and funds to close when getting a mortgage

By Didier Malagies • April 14, 2025
Are you a salaried employee, hourly, self-employed, or a contractor? Do you receive bonuses, commissions, or overtime? How consistent is that income? Can you provide recent pay stubs, W-2s, or tax returns? Self-Employment (if applicable): How long have you been self-employed? Can you provide two years of business tax returns and profit/loss statements? 🔹 Funds to Close Questions Lenders want to confirm you have enough money to cover the down payment, closing costs, and reserves. Questions may include: Source of Funds: How much money do you have saved for the down payment and closing costs? Where are these funds coming from (savings, checking, retirement account, gift, etc.)? Are you receiving any gift funds? If so, from whom? Asset Documentation: Can you provide bank statements from the past 2–3 months? Are there any large or unusual deposits? Can you explain them? Reserves: Do you have additional savings left after closing (reserves)? Can you show evidence of other assets (stocks, bonds, retirement)? tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329

What are the benefits of having a Reverse Mortgage

By Didier Malagies • April 10, 2025
Yes, the reverse mortgage market is projected to experience growth in 2025. Analyses indicate that the market size will increase from $1.79 billion in 2024 to $1.92 billion in 2025, reflecting a compound annual growth rate ( A reverse mortgage can be a useful financial tool for certain homeowners, especially older adults looking to access home equity without selling their home. Here are the key benefits of a reverse mortgage: 🏡 1. Access to Home Equity Without Selling You can tap into your home's equity and receive funds as a lump sum , monthly payments , or a line of credit , without having to sell your home or move out. 👴 2. No Monthly Mortgage Payments Unlike a traditional mortgage, you don’t make monthly payments . Instead, the loan is repaid when you sell the home, move out permanently, or pass away. 💵 3. Flexible Payout Options You can choose how to receive the funds: Lump sum Monthly payments (tenure or term) Line of credit Or a combination This flexibility helps match your financial needs. ✅ 4. Stays in Your Name You retain ownership of your home, and as long as you meet the loan requirements (like maintaining the home and paying property taxes/insurance), you can continue to live there. 🛡️ 5. Non-Recourse Loan You (or your heirs) will never owe more than the home is worth . If the home’s value drops below the loan balance, the FHA insurance (if it's a HECM—Home Equity Conversion Mortgage) covers the difference. 👨‍👩‍👧‍👦 6. Heirs Have Options When you pass away, your heirs can: Repay the loan and keep the home Sell the home and keep any remaining equity Walk away if the loan balance exceeds the home’s value  💰 7. Supplement Retirement Income Reverse mortgages can provide a source of income during retirement, helping cover expenses, delay Social Security, or preserve investments. Would you like a quick rundown of the downsides too, just so you have the full picture?
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