17
Aug
By First Rate Financial Group
Mortgage

Mortgage Shopping And Your Credit Score

Mortgage Shopping And Your Credit ScoreThe vast majority of people have to take out a home loan to purchase a house. This means applying for a mortgage. Unfortunately, shopping for a mortgage can actually hurt your credit score. Any potential lender will probably have to do a hard pull on your credit. This could temporarily reduce your credit score by a few points. Those few points could make the difference between qualifying for a mortgage and getting denied one. Fortunately, there are ways for you to shop for a mortgage without hurting your credit.

Check Your Credit Score First

First, you need to check your credit report before you start shopping for a mortgage. By law, the major credit bureaus are required to give you at least one free credit report every year. This is your opportunity to take a look at your credit report and correct any inaccuracies that might be present. That way, you can correct these issues before you apply for a mortgage instead of after. This can save you a significant amount of time during the shopping process. 

Get Pre-Qualified For A Home Loan

You should also get pre-qualified for a home loan before you start shopping in earnest. When you get pre-qualified for a mortgage, you receive an estimate of how much money you can borrow to purchase your home. This means that the lender will run a soft inquiry on your credit report, which will not impact your credit score. Pre-qualification is not as strenuous as the full approval process, and you will eventually have to go through the full application process to get your mortgage; however, getting pre-qualified is a great starting point.

Submit All Applications Rapidly When You Find The Right Home

After you apply for your first mortgage, you will have 45 days to talk to other lenders. As long as all of your other hard credit pulls take place within about six weeks, subsequent applications should not have an impact on your credit score. This means that you need to have all of your documents together, which will allow you to expedite the process. That way, you can find the best deal you can on a mortgage without unnecessarily impacting your credit score. 

27
Jul
By First Rate Financial Group
Mortgage

The Top Questions To Ask A Mortgage Lender

The Top Questions To Ask A Mortgage LenderWith many people interested in taking out a home loan, it is critical for potential homeowners to think carefully about which loan structure is right for them. There are a lot of home loan options out there, and potential homeowners need to make sure they consider the benefits and drawbacks of all options. This means asking the right questions. What questions do you need to ask your mortgage lender?

How Big Of A Down Payment Do I Need?

The first question you need to ask your mortgage lender is about the down payment you need to make. A smart rule of thumb is that you need to put 20 percent down for your house; however, this is a large sum of money that many people do not have. If you are buying a home for the first time, you might be able to get a home for 3.5 percent down. Always talk to your mortgage lender about this issue.

Is My Credit Score High Enough?

Next, talk to your mortgage lender about your credit score. The higher your credit score, the easier it will be for you to qualify for a home loan. You may want to talk to your mortgage lender about your credit report to see if there are any inaccuracies that need to be fixed.

Do I Need To Get Mortgage Insurance?

Do not forget to ask your mortgage lender if you need to get mortgage insurance. If you put less than 20 percent down on your house, you might need to get insurance, but your premium should go down as your equity goes up. Then, once you reach 20 percent equity in your home, you should be able to get rid of mortgage insurance. Clarify this with your mortgage lender.

Find The Right Home Loan For Your Needs

These are a handful of the top questions you need to ask your mortgage lender if you are thinking about taking out a home loan. With so many loans available, it is easy to get confused. Remember that the right loan for one person is not necessarily the right loan for you. Your mortgage lender can help you put yourself in the best position possible to be successful. 

09
Mar
By First Rate Financial Group
Mortgage

How Long Does A Refinance Take?

How Long Does A Refinance Take?If you want to save money on your mortgage, refinancing your house could be a great move. As long as you have plenty of equity and a great credit score, you should be able to qualify for the refinance process. At the same time, you might be wondering, how long will it take you to refinance your house? There are several factors to keep in mind, so be sure to work with a professional who can walk you through the process.

It Usually Takes A Month Or Two

In general, refinancing your home loan will take a month or two. Most refinances will be completed in 30 to 45 days, but every lender is different. It depends on how complicated your mortgage is, the other refinancing applications the lender is processing, and the number of staff they have on hand. If you are in a hurry to refinance your mortgage, you may want to talk with the lender to see how quickly they can process your paperwork.

The Lender Has Several Tasks To Complete

There are several tasks the lender will need to complete before he or she can approve your refinance application. First, the lender needs to make sure you have enough equity in your home to complete a refinance. Then, the lender will also check your credit score to make sure it is high enough to qualify. The loan officer will also make sure your mortgage is not behind. Similar to the original mortgage application, the lender will also have to complete inspections and appraisals before your refinance can be approved. All of these tasks take time, which is why you should anticipate spending a month or two refinancing your home. 

Work With A Professional

Every lender is a bit different, so be sure to talk to the lender ahead of time to understand how long the process takes. If you have a deadline you need to meet, starting the process earlier is usually better. That way, you leave yourself time to address any hurdles that may develop along the way. Refinancing your home loan is a great way to draw cash from the equity in your home, lower the interest rate on your mortgage, and save money.