Finance:
Steps
to Successful Financing
The way you approach mortgage shopping can literally save thousands
of dollars.
Take time to understand the system and make educated decisions.
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Check
Your Credit Report:
A lender will run a credit report, however you can access your own
credit report free at www.freecreditreport.com.
This will show you what"s on your report before you start shopping
for a loan and gives you time to fix errors.
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Get
Pre-Approved:
This is easy and free and banks are happy to provide this service.
Ask for a written "pre-approval letter," which includes
a completed credit application and certification guaranteeing you
for a specific loan amount.
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How
Much Can You Afford?:
Lenders can tell you how much you qualify for, but you decide what
you are comfortable with.
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What
Type of Loan Is Best For You?:
If you are comparing several banks, ask your lender for a written
"Good Faith Estimate" of all the loan costs
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Items
You Need For Your Loan Application:
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| Ask about Pre-payment: Most loans "do not" have pre-payment penalties, however, be sure to ask. You can shave years off your mortgage by simply paying more frequently or making 2-3 extra payments per year. |
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ITS
THE LAW! |
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CREDIT
SCORES!
A credit score is a snapshot of your credit risk at a given time. Credit scores are based on credit history and five categories of information. Payment History - 35% Amount of Debt - 30% Length of Credit History - 15% New Debt or Inquiries - 10% A Healthy Mix - 10% |