About Your Credit

On Q professionals are well trained to identify your individual strengths and match you with home loan lenders that value your best assets.  The most important factors are your credit, your income, and loan-to-value.  Other factors, such as liquid assets, can also be important in getting your mortgage approved.

• Your Credit Score
• Your Income

Your Credit Score

The FICO® credit score is a number based on a formula developed by Fair Isaac and Company, Inc.  The credit score is an important measure that helps Lenders determine how likely you are to repay your debts.  To make the most of your credit, pay bills consistently and on time, manage credit wisely, and check personal credit scores periodically.

The credit score formula takes many factors into consideration such as timeliness in paying bills, the amount of credit you have, how long you have had that credit, and the percentage of your total credit that you are using. The factors are given individual weights that when calculated together create the credit score.

Credit scores range from 300 to 850.  With higher credit scores, there are more rate and approval options to choose from.  In this case, your On Q Team will identify lenders that reward borrowers for having high scores.

While maintaining a good credit score is important, On Q can provide valuable help to borrowers with less than perfect credit.

Lower credit scores mean fewer options whether purchasing a new home or refinancing.  But On Q is expert at finding mortgage solutions to fit virtually every need.  In this case, the On Q Team will identify lenders that value the borrower’s other strengths.

To find out more about credit scores and how to maintain or improve your credit, these sites can help you:

• Fannie Mae: www.fanniemae.com
• Freddie Mac: www.freddiemac.com

For more about credit scores and other useful information or to order a credit report, visit:

• Equifax: www.equifax.com
  Or you may order your credit report by calling: 800-685-1111.
• Experian: www.experian.com
  Or you may order your credit report by calling: 888-397-3742.
• Transunion: www.transunion.com

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Eligible Sources of Income

• Salary
• 2nd Job/Part Time employment
• Spousal Support/Child Support
• Retirement/Pension/Social Security 
• Rental Income
• Self Employed
• Tax transcripts

Typical Income Documentation Requirements

Salary
Pay stubs & 2 yrs W2s

2nd Job Part·time Employment
Pay stubs & W2s - must have a history of working a 2nd job for at least 12 months prior to
application and must be verifiable income

Spousal Support
Marital Settlement Agreement and proof support will continue for at least 3 more years and proof of receipt - cancelled checks or bank statements

Child Support
Marital Settlement Agreement or Child Support Order from the court and proof support
will continue for at least the next 3 years and proof of receipt of support - bank
statements, cancelled checks

Retirement / Pension / Social Security
1099R and proof of receipt - bank statements or annual statement

Annuities
1099R and proof of receipt - bank statements or annual statement - must have proof there are enough funds to get income for at least 3 more years

Interest / Dividends
2 yrs 1040's Schedule A and statements showing enough principle to have interest/dividend income continue for at least 3 years

Rental Income
2 yrs 1040's Schedule E

Self Employed
2 years 1040's Schedule C or corporate returns, business license if required

Note Income
Copy of the note, proof of receipt of payments for at least the past 12 months and proof income will continue for at least 3 more years

Max LTV/CLTV
96.5% FHA
100% VA
90% declining markets
95% other states

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