Finances

All types of loans are available in the DC metro area. To determine the best one for you takes a consultation with a good, reputable mortgage banker.  It’s important to have a referral of someone you can trust, after all you will be sharing with them your most personal information.  I have some names I can pass along, just let me know if that would be of help.

Strategy for a home purchase should always include a pre-approved loan, prior to beginning to search for a house. You can never be too prepared to present your case when negotiating a home purchase.

It’s most important that you find a good lender. Once you find a good lender, the best interest rates will follow! As will the service and actually having a closing to attend where the lender has delivered the mortgage funds.

Locking In Your Interest Rate

In most cases, the terms you are quoted when you talked to your Mortgage Company Loan Officer only represent the terms available to borrowers settling their loan agreement at the time of the quote. The quoted terms may not be the terms available to you at closing weeks or even months later.

Therefore you should not rely on the terms quoted to you during the initial discussions with a mortgage representative, unless they have offered you a lock-in. It is typically your option whether or not to lock-in an interest rate and discount points. In situations where your purchase agreement calls for a specific rate and points, you may be obligated to lock-in. Your loan officer can explain this to you in full detail. With the way interest rates are going these days, you need to be aware of this option!

Qualifying for Your Mortgage

Qualify for your home mortgage by knowing what to bring to the loan application, it will shorten the process and make life so much easier for all involved…especially you!

When a mortgage lender takes your application they are checking your ability and willingness to repay. It is said that “history repeats itself”. Lenders look at your history to predict the future. This process can go as quickly as 24 hours or take several weeks.

This is done by checking the following items:

* Your credit history (the past 2 years)

* Your checking account (bounced checks are not good)

* Your income

* Your FICO score (on conventional loans)

Almost everyone who has some sort of credit, some money set aside for a down payment and an income can get a loan. Now whether or not you want that loan may be a different story. Mortgage rates are proportional to the amount of risk the lender must take. If the credit history is bad, the risk will be off set by a higher interest rate.

The best way to qualify for a mortgage that you want is to have a nice clean credit report, little debt and pay all your bills on time, every time. Excessive consumer debt as in multiple credit cards lowers your FICO score. A hint to avoid this happening is to consolidate your debt on one charge card.

Even if you have excellent credit it is a good idea to pull a credit report on yourself, prior to visiting the lender.  There are more than one credit reporting companies and not all companies report to all credit bureaus, so be sure to request a credit report from all, just to be sure.

Here is how to contact the credit reporting agencies:

 

Equifax Information Service Center

P.O. Box 740241

Atlanta, GA 30374-0241

1-800-997-2493

You can also order your credit report from a secure section of the Equifax website.

Experian National Consumer Assistance Center

P,O, Box 2104

Allen, TX 75013-2104

1-888-397-3742

You can print a credit report order from at the Experian website.

Trans Union Corporation, Consumer Disclosure Center

P,.O. Box 390

Springfield, PA 19064-0390

1-800-888-4213

You can order a credit report online from Trans Union’s website.

By reviewing your credit report prior to visiting a lender, you will be able to straighten out any errors or disputed items and avoid any troublesome holdups down the road. If you see a disputed item, an error made by a faulty social security number, a name similar to yours, or a court ordered judgment you paid off that hasn’t been cleared from the public records, clear it off now. By writing to the credit reporting agency, you can have them remove the items and save you time and aggravation later.

If you find you need assistance with any of these strategies, it’s OK to sit down and talk with a lender. Explain your situation and what you are trying to do. A good lender will help you structure your finances, credit report and budget, keeping your best interest in mind.