Getting a good mortgage is one of the most overlooked aspects when shopping and applying for a loan. A lower interest rate can save you hundreds of dollars a month and tens of thousands of dollars over the course of the mortgage. Interest rates are low right now and locking in a good rate for purchasing a home or refinancing an existing home is a good idea right now. Please note that Peak Home Loans are experts at getting our good credit clients the hassle-free, low cost, best rate mortgage refinance loan they desire.
But, because of the recent rash in foreclosures across the country, banks are hesitant to loan money to anyone without good credit. However, there are several courses of action if you do have good credit and want to refinance with good credit or buy a home with good credit. If you have a good or excellent credit rating, Peak Home Loans can offer you the type of loan you want at the rates and terms you have worked so hard to deserve. Good credit's the greatest asset you can have. Excellent credit's, well, excellent. You can get the best of everything - rates, terms, reduced paperwork and many more benefits too numerous to mention. We can give them all to you. You earned it. When contacted by us, kindly ask our loan professional any question you may have. They will be more than happy to assist you in getting the very best rate due to the good credit you earned. Remember, all loans don't fit all people; if you need a mortgage loan and have good credit, we'll find the right one for you.
You need credit in your own name, not your spouse's or anyone else's name. This is especially true if that individual has bad credit or your name has been tied to them in the past, and then you get bad credit. What you can do is call the credit bureaus (there are three national ones) and tell them that you are requesting to have credit in your own name, and that you don't want anyone else's accounts tied to yours. Insist they remove any and all accounts that could be attributed to your spouse or former spouse.
Get information on how your credit score is tabulated. There are three factors normally evaluated and then turned into a risk score (or how likely you are to pay off your debt). The first factor is Capacity - can you pay it back? How long have you had a job or the same job? What is your individual debt ratio? They look into loans and other credit cards and all sorts of things. The second factor is Collateral - do you have anything of value to put against a loan as large as a mortgage? Finally, they study your Character - do you have savings and checking accounts? Have you been at one job a long time? Do you pay your bills on time regularly? What is your education or criminal status?
Put down more money on your home loan. Putting down 20% down rather than 10% down will save you money in the interest rate you will receive. This will also save you from paying private mortgage insurance which can be costly.
Buy a home that costs less money. This makes sense. The lower your monthly housing expenses are relative to your monthly income, the better the interest rate you will receive. You are better off paying 30% of your monthly income to housing expenses, including mortgage payments, home owners insurance, and taxes, than you are paying 40%. Think about the stress you will not have.
Negotiate your interest rate. Also, negotiate the fees you pay for your loan. Remember, everything is negotiable. Banks want your business, that is how they make money. Without loans like yours, they would be out of business.
As far as wee see it, for the rest of the year, credit standards are going to remain high. Approvals and best rates will go to those with the highest credit scores.
Note: Your FICO score consists of five main areas:
Click to get your FREE FICO Score From TransUnion, Equifax And Experian (Tri-Bureau) You get your credit score for free, monthly monitoring for free, and the ability to dispute any item on your report that is wrong. This is an excellent way to improve your already good credit score and get lower interest rates within 30 days. You should never be denied a loan with excellent or good credit; but if you are, you may obtain a fee report from the agency that provided the information leading to your denial. Knowing your credit score is always the best policy.
"Our well-qualified mortgage experts will do whatever it takes to get you the loan you want with the best rate available, the lowest monthly payment, and the most cash if you need cash. We will work around less than perfect credit and reward those with good credit. We will do what others cannot." - Peak Home Loans, hundreds of thousands served since 1998.