Saturday, August 05, 2006
DPOL.com
dpol.com is where you can view current property listings for sale in the Delmarva area. Check it out, you can put in price desired, bedrooms wanted, and so on and it will show you everything available that fits into your criteria.
Low-Rate Mortgage & Home Equity Loans
Choosing the right lender is crucial. They will be with you for the life of your loan, 30-40 years. With E-loan you can apply over the internet and track your progress.
Choosing the right lender is crucial. They will be with you for the life of your loan, 30-40 years. With E-loan you can apply over the internet and track your progress.
Monday, July 24, 2006
Bank Accounts
It is important to maintain a bank account in good standing. Keeping your account with a positive balance is a good way to build your credit standing.
If you do not have a bank account you should definately obtain one. Look for one that gives you a good percentage rate so that the money you are saving can grow more rapidly. Anything that can help your money grow is a good thing.
One thing mortgage lenders like to see is that you have been able to have saved some money. Try making some amount of deposit monthly to grow your balance.
Money is not always needed for a down payment, but there are almost always closing costs, unless the seller has agreed to pay them.
Friday, July 21, 2006
There are Programs for the Credit challenged
Compare what different lenders have to offer. There are many different loan programs out there. Almost one for every individual. Even people with less than perfect credit scores can obtain a mortgage loan. Your loan will be based on your credit score.
For the people with less than perfect credit, lenders like to see that you have been paying your bills on time for at least the last six months. They also would like to see close to three lines of open credit, such as credit cards and major department store cards. One other thing to keep in mind is that now is not the time to make any large purchases, like a vehicle. This would create a new loan on your credit with no payment history. If you have recently purchased a vehicle, you will want to ake timely payments for the next six months to help your credit score.
Wednesday, July 19, 2006
Getting More Interested Buyers
Sometimes a yard can make all the difference. It's hard to say how many more homes buyers would have an interest in seeing if the yard was more appeallng. Usually, if a buyer hasn't spotted your home from riding around, they have found it on the internet. Sites like dpol.com are a common site people view properties for sale. "A picture says a thousand words" visitors of this site can view properties for sale by simply logging on and starting a search. If your home isn't appealling from the outside, it's unlikely buyers will wish to visit your property. If noone visits, noone buys.
Try some simple landscaping to the yard. Plant shubbery and flowers. Brighten your yard and brighten your opportunity of a sale.
A skilled Mortgage Lender can help
A Skilled Mortgage Lender Can Help
It’s a very simple equation. The higher your credit score, the better interest rate you will receive as a borrower. The reasoning behind the equation is equally simple –your interest rate not only reflects current market conditions but also your estimated ability to pay back the loan. To a lender, the latter is worth its weight in gold.
Components of a Credit Score Generally speaking, your credit score is based upon the following criteria in order of importance:
Payment history (this is where delinquencies will hurt you).
Responsibility regarding credit usage (how maxed out are your accounts).
Credit age (how long have you had your credit accounts).
Number of credit inquiry requests.
Credit diversity.
These quantifiable aspects, once accumulated, typically result in a number between 450 and 850. The bottom line is the higher number, the more likely you are to pay back the loan. A Closer Look at the Players Involved. There are three separate credit bureaus that keep track of your score, Experian, Trans Union and Equifax. If you’ve heard your score referred to as a “FICO” score it’s because all three bureaus use software developed by Fair Isaac Corporation. FICO is an acronym taken from that name. It’s important to know most lenders look at all three scores when making a decision on your loan, since scores can and often do vary. While FICO is the industry standard, the three major credit bureaus recently released their own scoring model called Vantage Score. The new system is actively being marketed to lenders, and the bureaus claim that it will produce more uniform results. In addition, the scoring system is arranged similarly to the grades given out in school, making it easier for everyone to understand. Time will tell whether this system will impact the use of the FICO system. What a Credit Score Means... A borrower with an outstanding credit score will get what is called an A-paper loan. This borrower is rewarded with a lower interest rate because of their proven track record. Consumers with less-than-perfect credit receive loans labeled A-minus, B-paper, C-paper or D-paper. These loans are known as “sub-prime” and come with a higher interest rate. On a monthly basis, this translates into more money out of the borrower’s pocket."
Improving Your Score
Now that we’ve explored the nuts and bolts of credit scoring, let’s examine how you can improve your score. For starters, it’s a good idea to consult with a qualified mortgage professional that can provide examples of reasonable credit usage, discuss options for paying off existing debt and advise you regarding whether limiting or expanding your credit is most beneficial. A mortgage consultant can also assist you with identifying negative items or potential errors on your credit report. It’s important to deal with such issues as soon as possible. In addition, if you need credit counseling, a mortgage professional can help you obtain it. Here are some additional tips to keep in mind:
1)Pay your bills in a timely manner – Paying bills on time for one month can raise your credit score as much as 20 points.
2)Control the balances on your credit cards. Maxing out credit cards can lower your score as much as 70 points.
3)Don’t open new lines of credit you don’t need. New accounts lower your average account age which, in turn, may lower your score as much as 10 points.
4)Increasing high credit limit on current accounts – Often you can increase your line of credit to the point where you balance is less than 50%, this generally has a positive impact on your scores as the credit bureau’s systems pick this ratio up as a conservative use of spending.
It’s a very simple equation. The higher your credit score, the better interest rate you will receive as a borrower. The reasoning behind the equation is equally simple –your interest rate not only reflects current market conditions but also your estimated ability to pay back the loan. To a lender, the latter is worth its weight in gold.
Components of a Credit Score Generally speaking, your credit score is based upon the following criteria in order of importance:
Payment history (this is where delinquencies will hurt you).
Responsibility regarding credit usage (how maxed out are your accounts).
Credit age (how long have you had your credit accounts).
Number of credit inquiry requests.
Credit diversity.
These quantifiable aspects, once accumulated, typically result in a number between 450 and 850. The bottom line is the higher number, the more likely you are to pay back the loan. A Closer Look at the Players Involved. There are three separate credit bureaus that keep track of your score, Experian, Trans Union and Equifax. If you’ve heard your score referred to as a “FICO” score it’s because all three bureaus use software developed by Fair Isaac Corporation. FICO is an acronym taken from that name. It’s important to know most lenders look at all three scores when making a decision on your loan, since scores can and often do vary. While FICO is the industry standard, the three major credit bureaus recently released their own scoring model called Vantage Score. The new system is actively being marketed to lenders, and the bureaus claim that it will produce more uniform results. In addition, the scoring system is arranged similarly to the grades given out in school, making it easier for everyone to understand. Time will tell whether this system will impact the use of the FICO system. What a Credit Score Means... A borrower with an outstanding credit score will get what is called an A-paper loan. This borrower is rewarded with a lower interest rate because of their proven track record. Consumers with less-than-perfect credit receive loans labeled A-minus, B-paper, C-paper or D-paper. These loans are known as “sub-prime” and come with a higher interest rate. On a monthly basis, this translates into more money out of the borrower’s pocket."
Improving Your Score
Now that we’ve explored the nuts and bolts of credit scoring, let’s examine how you can improve your score. For starters, it’s a good idea to consult with a qualified mortgage professional that can provide examples of reasonable credit usage, discuss options for paying off existing debt and advise you regarding whether limiting or expanding your credit is most beneficial. A mortgage consultant can also assist you with identifying negative items or potential errors on your credit report. It’s important to deal with such issues as soon as possible. In addition, if you need credit counseling, a mortgage professional can help you obtain it. Here are some additional tips to keep in mind:
1)Pay your bills in a timely manner – Paying bills on time for one month can raise your credit score as much as 20 points.
2)Control the balances on your credit cards. Maxing out credit cards can lower your score as much as 70 points.
3)Don’t open new lines of credit you don’t need. New accounts lower your average account age which, in turn, may lower your score as much as 10 points.
4)Increasing high credit limit on current accounts – Often you can increase your line of credit to the point where you balance is less than 50%, this generally has a positive impact on your scores as the credit bureau’s systems pick this ratio up as a conservative use of spending.
Thursday, July 13, 2006
Pre-qualification
"Pre-qualification" occurs before the loan process actually begins, and is usually the first step after initial contact is made. In a pre-qualification, the lender gathers information about the income and debts of the borrower and makes a financial determination about how much house the borrower may be able to afford. Different loan programs may lead to different values, depending on whether you are qualified for them, so be sure to get a pre-qualification for each type of program you are suited for.
Application
The "application" is actually the beginning of the loan process and usually occurs between days one and five of the loan. The buyer, now referred to as a "borrower", completes a mortgage application with the loan officer and supplies all of the required documentation for processing. Various fees and down payments are discussed at this time and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-Lending statement(TIL) within three days which itemizes the rates and associated costs for obtaining the loan.
Opening the File
This occurs between day three and ten. At this time the lender orders a property appraisal, property survey and credit reports, mail out requests for verification, if neccessary, for employment (VOE) and bank deposits (VOD) and any other documents needed for processing of the loan. All information supplied by the buyer is reviewed at this time and a list of items not yet received is compiled.
Processing
Processing occurs between days five and twenty-five of the loan. The "processor" reviews the credit reports and verifies the borrower's debts and payment histories as the VODs and VOEs are returned. If there are unacceptable late payments, collections for judgements, etc., a written explanation is required from the borrower. The processor also reviews the appraisal and survey and checks property issues that may require further discernment. The processors job is to put together an entire package that may be underwrited by the lender.
Underwriting
"Lender Underwriting" occurs between days fifteen and twenty-five. The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan. If more information is needed, the loan is put into "suspense" and the borrower is contacted to supply more documentation.
"Mortgage insurance Underwriting" occurs when the borrower has less than 20% to put towards a down payment. At this time, the loan is submitted to a private mortgage guaranty insurer, who provides extra insurance to the lender in case of default. As above, if more information is needed the loan goes into suspense. Otherwise it is usually returned back to the mortgage company within 48 hours.
Pre-closing
"Pre-closing" occurs between days twenty and thirty. During this time the title insurance is ordered, all approval contingencies, if any, are met, and a closing time is scheduled for the loan.
Closing
Closing usually occurs between days thirty and forty-five of the loan. At the closing, the lender "funds" the loan with a cashier's check, draft or wire to the selling party in exchange for the title to the property. This is the point at which the borrower finishes the loan process and actually buys the house.
Closings occur at different places in different states. For instance, some states require that the closing take place at a closing attorney's office while others use a title or escrow company.
"Pre-qualification" occurs before the loan process actually begins, and is usually the first step after initial contact is made. In a pre-qualification, the lender gathers information about the income and debts of the borrower and makes a financial determination about how much house the borrower may be able to afford. Different loan programs may lead to different values, depending on whether you are qualified for them, so be sure to get a pre-qualification for each type of program you are suited for.
Application
The "application" is actually the beginning of the loan process and usually occurs between days one and five of the loan. The buyer, now referred to as a "borrower", completes a mortgage application with the loan officer and supplies all of the required documentation for processing. Various fees and down payments are discussed at this time and the borrower will receive a Good Faith Estimate (GFE) and a Truth-in-Lending statement(TIL) within three days which itemizes the rates and associated costs for obtaining the loan.
Opening the File
This occurs between day three and ten. At this time the lender orders a property appraisal, property survey and credit reports, mail out requests for verification, if neccessary, for employment (VOE) and bank deposits (VOD) and any other documents needed for processing of the loan. All information supplied by the buyer is reviewed at this time and a list of items not yet received is compiled.
Processing
Processing occurs between days five and twenty-five of the loan. The "processor" reviews the credit reports and verifies the borrower's debts and payment histories as the VODs and VOEs are returned. If there are unacceptable late payments, collections for judgements, etc., a written explanation is required from the borrower. The processor also reviews the appraisal and survey and checks property issues that may require further discernment. The processors job is to put together an entire package that may be underwrited by the lender.
Underwriting
"Lender Underwriting" occurs between days fifteen and twenty-five. The underwriter is responsible for determining whether the combined package passed over by the processor is deemed as an acceptable loan. If more information is needed, the loan is put into "suspense" and the borrower is contacted to supply more documentation.
"Mortgage insurance Underwriting" occurs when the borrower has less than 20% to put towards a down payment. At this time, the loan is submitted to a private mortgage guaranty insurer, who provides extra insurance to the lender in case of default. As above, if more information is needed the loan goes into suspense. Otherwise it is usually returned back to the mortgage company within 48 hours.
Pre-closing
"Pre-closing" occurs between days twenty and thirty. During this time the title insurance is ordered, all approval contingencies, if any, are met, and a closing time is scheduled for the loan.
Closing
Closing usually occurs between days thirty and forty-five of the loan. At the closing, the lender "funds" the loan with a cashier's check, draft or wire to the selling party in exchange for the title to the property. This is the point at which the borrower finishes the loan process and actually buys the house.
Closings occur at different places in different states. For instance, some states require that the closing take place at a closing attorney's office while others use a title or escrow company.
Tuesday, July 11, 2006
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