Lifting a Credit Freeze

Un-Freezing Your Credit Report

Freezing your credit won't hurt your score, but it will keep an identity thief from opening new accounts in your name which is a good thing. Keep in mind when purchasing a home or refinancing you will need to "Un-Freeze" your reports with the credit bureaus.

When a mortgage lender pulls your credit they will be alerted that there's a freeze on your credit report and you will need to contact that particular company (Trans Union, Experian, Equifax), and each company has a process so ensure you check.

Below are the 3 different Credit Bureaus that you may have a Freeze on:

Transunion

You may request a lift of your freeze from Trans Union online, by mail, or by phone.

By phone: You will need to have your SSN, DOB, Security Freeze Pin, lift type, start date and end dates. It can take up to 15 minutes to process this request.

By mail: Complete the Lift Section of the Security Freeze Form that is sent to you after you've requested the freeze, mail it back to the address at the bottom of the form. It can take up to 3 business days from the date of receipt to process this request.

Note: If you're in the state of Colorado and are requesting a lift, you must ask for a "Global Lift." This does not require third parties to have a PIN to access your credit file.

Experian

You may request a lift of your freeze from Experian online or by phone

For either, you will need to provide your identification information and PIN. Experian will then provide you with a PIN to give to third parties that need to retrieve your report.

Equifax

You may request a lift of your freeze from Equifax online or by phone

For either, you will need to provide your 10-digit security freeze confirmation PIN provided in your confirmation letter, date range and the name of the specific credit grantor/report user you woul like to receive your report.

Mortgage Rates Are on the Rise!

We said it would happen and soon. Average rates have just passed 5%

What we don't know is how far or how fast this Mortgage Rate rise will be. Recent positive indicators for the economy have caused rates to rise. Mortgage Rates parallel Long-Terms Bond Rates and those always rise on positive economic news. It is more important than ever to have your Refinance or Purchase file in the hands of a competent Mortgage Professional! At Valley West Mortgage, we keep a very close watch on rates for our clients. While rates are clearly on the rise, they still have their ups and downs. We watch all of the rate change indicators for potential changes so we can lock rates at the best possible advantage for our clients.

The key to being ready to lock is having a complete file which is ready in every respect. With our clients help, and help from our Realtors on Puchase files, we do everything within our control to make sure that your file is complete, as quickly as possible. In this way, we won't miss any opportunity to secure the best terms possible! Give us a call today so we can help you to succeed even in this unstable market. Remember, Las Vegas is still one of the best buying opportunities in the entire country regardless of current rate fluctuations.

Call (702) 696-9900 or (888) 931-0007 and let Valley West Mortgage get you ready to close!

Congress has passed H.R. 5981 - FHA Mortgage Insurance Changes...

This bill gives FHA the authority to adjust its annual mortgage insurance premiums.

While there is both good news and bad news for FHA mortgage applicants, this premium restructuring will help to keep FHA stable in the long run. The up-front mortgage insurance has been lowered considerably. This will mean a smaller bite out of consumer wallets in order to close the loan they have applied for. With todays stricter underwriting to qualify, there is less risk of default by new mortgage holders so this move makes sense. Now for the trade-off...

On the other side of the equation, the cost of the monthly amount of mortgage insurance will increase. This could be interpreted as FHA reserves being replenished at a slower rate than before passage of this bill. With the more stable underwriting lowering the risks, consumers can save some of that money that was needed just to close their loan. You will still end up spending that money but, it will be as a slightly higher monthly payment amount. While this is a fair trade off for many, some folks who are right at the limit for the maximum monthly payment they can qualify for, will have to find a way to lower their loan amount to offset the impact of the higher monthly mortgage insurance premium. This change will be effective for all FHA loan applications started on or after September 7th, 2010. While President Obama has not officially signed the bill into law, no veto is expected.

If you are considering Strategic Default - Don't!

Lenders are starting to crack down on "Strategic Defaults".

Fannie Mae has announced stiffer penalties to consider if you decide to walk away from a mortgage that you can afford to pay. Starting in the fall, Fannie Mae will disqualify borrowers for a period of seven years if they choose to default on their mortgage even though they have the ability to pay. Fannie Mae also plans to take such borrowers to court to recover loan losses resulting from this type of default.

There is a bill working it's way through Congress that would also prevent you from getting an FHA insured mortgage if you have previously "walked away" from a mortgage. Since it makes sense that you would be viewed by Lenders as a higher risk after taking this action, I think we can expect this bill to pass. We have blogged before about the possibilities of a Short-pay Refi or a Short sale so if you are considering Strategic Default it is time to review other avenues. USA Today has a more in depth article on Strategic Default which will fill you in on the upcoming changes. Click here to read the USA Today article.