you considering buying a new home? Would you need a home
loan to do so? Do you have questions about the financing
process before you begin searching for a home?
can not only buy a home with me, you can also speak with a
Mortgage Consultant we are working with at
SUNBELT LENDING SERVICES
get pre-approved while you chat.
call Patti Rix at (386) 679-1940
or email her
7 ways to build up your credit score to get the best interest
score requirements for loans are higher than they have been in
the past, so a good credit score is more crucial than ever. In
today’s economy most lenders are looking for credit scores of
720 or higher to secure a low mortgage rate.
seven ways to build up your credit score so you can enjoy the
best interest rates available.
Request your credit reports and assess the situation. Credit
required to provide you with a free credit report every
year, and nationwide consumer reporting companies get their
information from different sources. The data in your report
from one company may not reflect the same data in your
reports from the other two companies, so request all three.
to verify all of the information is correct. If there are
any errors, contact the bureaus immediately.
payment history accounts for 35% of your score, so make sure
payments are on time every month.
amount owed is 30% of your score. A good rule is to use less
than 10% of your credit available on each individual card.
length of your credit history accounts for 15%, so maintain
your accounts instead of closing them. You are not penalized
for available credit.
credit is 10% of your score and every time you apply for
credit an inquiry is added to your report, which drops your
of credit use d accounts for 10%. Installment loans like
vehicle and personal loans demonstrate you can manage
various long and short-term credits.
By Caitlin/Century 21 on
February 18th, 2011
Prequalification vs. pre-approval: What's the
When would-be homebuyers start house shopping, two terms
they are likely to hear are prequalification and
pre-approval. The two processes are similar, so
consumers often confuse one with the other.
Understanding the difference can help the home-buying
experience go more smoothly.
Prequalifying for a mortgage
Prequalification provides an estimate of how much credit
the borrower might be eligible for. It is a short,
simple process that can often be done over the phone.
The lender reviews information about:
Savings and other assets
Prequalification does not usually require documentation
and is usually free. It is not a full review of a loan.
It is useful for helping the borrower determine how much
he or she might be able to spend on a home.
Mortgage pre-approval paves the way
Pre-approval is a more in-depth process that increases
the likelihood that the borrower will ultimately be
approved for the loan.
The borrower provides:
Income documentation, such as W-2s, 1099s, tax
returns, pension statements, etc.
Asset documentation, such as bank statements and
retirement account statements
Credit explanations and documentation, including
paid collection account receipts and letters of
The lender reviews the information and runs a credit
report. The borrower may pay a fee for the credit
report. If the borrower is creditworthy, the lender will
issue a pre-approval letter.
Traditional loan conditions
A pre-approval is not a commitment to close a loan.
Approval is contingent on meeting conditions that would
be attached to any mortgage application, including a
suitable property, home inspection, title insurance,
Advantages of being pre-approved for a mortgage
A pre-approval indicates that the lender is ready to
make the loan based on the information provided. That
may give the borrower some leverage, because it tells
the seller and the seller's agent that the deal is
likely to go through. And because the process is
thorough, it provides an opportunity to identify
credit-related issues that must be addressed before
buying a home. When your buyer is ready, a Mortgage
Advisor can start the pre-approval process.
Here are some more newly published
credit resources for home buyers
on the website The Mortgage
The Mortgage Reports
Getting A Mortgage With No Credit
Buying Without Your Credit-Challenged Spouse
Buying A Home With Student Loans And Debt
Buying A Home With Low Credit Scores
5 Ways To Raise Your FICO Credit Score Today
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