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Loan Basics
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Almost all home
loans are now first approved by an underwriting automated system.
These systems give you your credit report and approval, at the same
time...you can be credit approved at application! But, if you don't
fit into the lending "box"...been you your job over 2 years, have
cash in the bank, have perfect credit, and are not buying the
perfect home, the automated system may not like what it sees and
deny your loan. This does not mean you can't get a home loan!
We advise all
future Home Buyers to get Pre-approved for your home purchase ...even
if you can't buy today... find out what you need to do, so you
can buy! Pre-approvals are good for 120 days. If you need to save
money, find out how much your need. If you have credit problems,
find out what you need to "fix". Fill out an application today
so we can get started!
Here's how to
contact three major credit bureaus:
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
800-685-1111
www.equifax.com |
Experian
P.O. Box 2104
Allen, TX 75013-0949
800-682-7654
www.experian.com |
Trans Union Corp.
760 W. Sproul Road
Springfield, PA 19064-0390
800-888-4213
www.tuc.com |
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Why your credit report is so important
Lenders are in business
and they evaluate your request for a mortgage in light of the risk
they take by funding your mortgage. In particular, lenders look at
these aspects of your credit record:
- Delinquent Payments. If
you have failed to make payments in the past, or if you have
been late making payments, lenders expect you to act similarly
in the future.
- Past Credit Usage. If
you are close to the limit on a credit card, you are considered
a greater risk than someone who has lots of credit available.
- How Long You Have Used
Credit. The most-used scoring system assumes that you are a
better risk if you have been using credit wisely for a number of
years.
- How Often You Apply for New
Credit. It's not a good signal if you have applied for many
new credit cards or other loans within a short period of time.
A lender evaluating your credit worthiness does not like to see
a lot of new indebtedness right before you apply for a mortgage.
- Your Credit Mix.
Credit card accounts, car loans, student loans and revolving
credit accounts all concern lenders when evaluating credit risk.
Other factors considered by a
lender
The stability of your
job and the price of the house are major factors in the equation.
Your ability to make your down payment and cover closing costs also
is evaluated. If your credit score and other aspects of your file
meet or exceed what the lender expects, loan approval can be almost
automatic, considerably speeding up the closing process. That is
one reason why credit scores are so important in the mortgage
industry -- the more they process can be objective, the faster and
more efficient the process becomes. Ultimately, that translates
into less cost to you, the consumer. We have answers for all your questions! We would be delighted to advise you about questions concerning your personal financial situation so you can buy the home of your dreams. Contact Wallinder Mortgage Brokers today or apply online -- we'll respond quickly and professionally to help you protect your best interests right through closing! |
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