When you are ready to buy a home, the first place you should turn your attention is not the local MLS listings. You need to pay attention to your credit report. Your credit score is one of the biggest determining factors in whether or not you’ll be able to afford a home. If you have had credit problems in the past or you just aren’t sure what your credit score is, it’s a good idea to go over your credit report with a fine tooth come.
Most lenders you see in the paper or on television are interested in A paper borrowers. If you show up with C paper, you are going to be rejected. Sorry, but that is the hard, cold truth. So, should you give up on your dream of owning a home? NO!
All proposals and quotes need to be in writing. This gives you the opportunity to compare your choices and pick the one that works best for you. It will also help prevent any unwanted surprises at closing.
The rule of thumb is that for every point you are willing to pay, the note rate can be lowered by one quarter of 1 percent. The 30-year fixed mortgage rates that are published by Fannie Mae have always reflected some points paid up front, so they are actually understating consumer loan costs.
Bill was surprised to find that the loan application contained some glaring inaccuracies, including a gross overstatement of his income and a property usage declaration stating the property would be used as his second residence. In fact, Bill had clearly informed the Best Mortgage Broker Brisbane he had no intention of ever living in the home.
Never do your own repairs. If you do, you’re working as a laborer, not an investor. You make money by locating and buying good deals, not swinging a paint brush. If you adhere to tip 3, it won’t be a problem; you’ll have the money. Some people tell me fixing houses is their therapy. I say if you lay hands on a house, you need therapy.
Find a relative or close friend with a long responsible credit card history and ask if you can be an authorized user on the account. The extra card can be sent to the holder and cut up, you enjoy a positive trade-line history giving your score a boost!
Mortgage brokers can get busy and have many people to attend to. You can help by staying in contact with them and follow up as needed through each of the steps of the process. A simple phone call, email or letter can keep the mortgage broker on track as well as inform you exactly of the status of your mortgage. You can request that they notify you of every step as well, as it is complete or changes.