Eyal Tropen - Sr. Loan Officer

NMLS # 874253

Improvements in Credit Ratings


We had credit problems in the past, and could not get a loan we needed. Could recent changes in credit scoring help us qualify for a home loan?


Your credit rating is a key factor in determining your eligibility for a new or refinancing an existing mortgage. Recent changes in reporting by the major credit reporting companies cause the credit ratings of many consumers to jump upwards - which will make a difference for you.

Why do we see an improvement in credit scores?

Interested in Locking your interest?

Question: When is a Good Time to Lock the Interest Rate on a Mortgage?

One of the first questions that arise in my conversations with clients is "What interest rate will we get on our mortgage?". In fact, it isn’t possible to know this in advance... By the time we’re ready to lock your rate, it can be very different from current interest rates, and it will be affected by final decisions regarding things like the type & terms of the loan selected, your credit rating, etc. Until we lock, interest rates will continuously fluctuate up or down with market conditions. Since the combination of the interest rate and the loan amount will determine your monthly payments, interest rate fluctuations may even affect your eligibility for a mortgage!


Similar to 2006-2007, some areas are experiencing very rapid house price appreciation. Topping this list is Greater Seattle. When this happened in 2007, a crash soon followed... so


Are We in Another Real Estate Bubble?


The short answer is "probably not"... Let's start with a quick history lesson: 

Q: It's time for us to move to a new home. We know that our house can probably be sold within a week, but we are afraid that it will take a few months to find a new home ... Sellers do not want contingent offers, and we do not want to rent...
Do we have to wait for the market to calm down?

Indeed, the demand for real estate in our region keeps breaking new records, creating a definitive "Sellers' Market" in which multiple offers are received for almost for every listing, often closing tens of thousands of dollars over the asking price. In such a market, any contingency of limitation greatly diminishes the chance an offer would be accepted.

If that's your situation, please read on... - I may have options for you...

Q: Should we buy a home now with a lower down payment and take out mortgage insurance? Or is it better to wait until we save enough down payment to avoid PMI before we buy a home ...

What is PMI?

Mortgage insurance (PMI) is required by lenders when taking a mortgage with a down payment lower than 20% of the value of the house (the lower of the purchase price and the appraised value). The insurance protects the lender in the event of a default from losses due to the difference between the selling price of the seized asset (after foreclosure and sale costs and expenses) and the unpaid debt.

So, is it better to wait until you save enough down payment to not pay mortgage insurance? Let's review the numbers...

Copyright © 2017. Eyal Tropen NMLS # 874253
Residential Mortgage Loan Originator Licensed in CA, OR, TX, WA

American Pacific Mortgage | NMLS #1850
625 4th Avenue, Ste 200 Kirkland, WA 98033 | NMLS # 1055557
Phone: 425-922-1055 | Fax: 855-549-8730 
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Master Builders Association