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  • 1. What is a mortgage? Views: 55
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    Terms of Use: A mortgage is a loan that is used to buy a home. In return for the loan, you pay interest on the amount loaned. The lender also has first rights on your house in case you neglect to pay back the loan. A mortgage has three components: Amount (how many dollars you need to borrow) Interest Rate (the percentage rate you pay on the loan) Term (how long it will take to pay off the loan, generally 15 or 30 years) All of these components impact how much your mortgage payment will be  More...
  • 2. What things impact my credit score and what can I do to improve my credit score? Views: 51
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    Terms of Use Your FICO® scores, from Fair Isaac and Company ( FICO ), are the credit scores most lenders use to determine your credit risk. You have three FICO ® scores, one for each of the three credit bureaus – Experian, TransUnion, and Equifax. Each credit score is based on information the credit bureau keeps on file about you. As this information changes, your credit scores tend to change as well. Credit scores consider five main kinds of credit information. Listed from most   More...
  • 3. What things are generally required by a lender to get a loan? Views: 51
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    Terms of Use: Pay stubs for the past 2-3 months W-2 forms for the past 2 years Information on long-term debts Recent bank statements Tax returns for the past 2 years Proof of any other income Address and description of the property you wish to buy Sales contract During the application process, the lender will also order a report on your credit history and a professional appraisal of the property you want to purchase. The application process typically takes between 1-6 weeks.
  • 4. How should I select a lender? Views: 48
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    Terms of Use: Choose your lender carefully. Look for financial stability and a reputation for customer satisfaction. Be sure to choose a financial institution that gives helpful advice and that makes you feel comfortable. A lender that has the authority to approve and process your loan locally is preferable, since it will be easier for you to monitor the status of your application and ask questions. Plus, it's beneficial when the lender knows home values, conditions in the local area and (be  More...
  • 5. What are some things that I should consider when shopping for a mortgage? Views: 47
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    Terms of Use Table of Contents 1. Obtain information from several lenders 2. Obtain all important cost information 3. Obtain the best deal that you can 4. Remember: Shop, compare, negotiate 5. Fair lending is required by law 6. Credit problems? 7. Glossary 1. Obtain Information from Several Lenders Home loans are available from several types of lenders-- thrift institutions , commercial banks, mortgage companies, and credit unions. Different lenders may quote you different prices, so you sh  More...
  • 6. What information should I be looking for on my credit report and how do I correct any errors? Views: 45
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    Terms of Use Your credit report is an important piece of your credit history and should be reviewed in detail. It's especially important to check your credit report (which details how well you pay your loans, bills and credit card purchases) before applying for a loan or other credit, to know where you stand. Check the accuracy of the following information on your credit report: Name. Ensure the spelling of your name is accurate. Address. Ensure your current and previous addresses are accu  More...
  • 7. Is it better to rent or buy a home? Views: 43
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    Terms of Use Before purchasing a home, ask yourself these questions: Do you have a steady source of income? Do you have a record of paying your bills on time? Are home prices fairly stable in your area? Are you planning to stay in the area for a few years? Have you budgeted for the costs of homeowners insurance, utilities, property taxes and other costs? Can you pay for unexpected repairs and maintenance? Have you factored in the tax benefits? When you are renting a home: There's little o  More...
  • 8. How can I see my credit report? Views: 41
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    Terms of Use There are three major credit reporting companies: Equifax , Experian , and TransUnion . Obtaining your credit report is as easy as calling or going to the internet and requesting one. It's a good idea to get copies from all three companies to ensure there are no mistakes since any of the three could be providing a report to your lender. Fees, ranging from $5-$20, may be charged to issue credit reports but some states permit citizens to acquire a free one (see related links). ?On  More...
  • 9. What is considered to be acceptable debt-to-income ratios when getting an FHA Loan? Views: 39
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    Terms of Use: The FHA allows you to use 31% of your income towards housing costs and 43% towards housing expenses and other long-tem debt. With a conventional loan, the qualifying ratio allows only 28% towards housing and 36% towards housing and other debt. How to calculate these ratios 1) MORTGAGE PAYMENT EXPENSE TO EFFECTIVE INCOME Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, mortgage insurance premium, homeowners' dues, etc.). The  More...
  • 10. Can I get a credit report for free? Views: 39
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    Terms of Use Credit reports contain a wealth of information about your credit history. Consumers now can get a free copy of their credit report. It's important to review your credit report at least annually to ensure it is accurate and that you have not become a victim of identity fraud. A study by U.S. Public Interest Research Group found that one in four credit reports contains errors serious enough to cause consumers to be denied credit, a loan, an apartment or or even a job. Some of th  More...
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