
Today we’re going to look at four steps for a speedier close, what might
happen to interest rates if you wait until 2014 to refinance, and three credit
repair myths.
Four Steps for A Speedier Close
The faster you close, the sooner you’ll be in your new home and can start
unpacking and getting ready for school to start and, believe it or not, the
holidays. So w
hat can you do to help for a swifter process?
- Know What Your Closing Costs Will Be and What Form of Payment Your Lender
Wants
- Find an Experienced Broker Who Can Push the Process Along Quickly
- Include Any Seller Concessions or Repairs In the Contract
- Set Up a Home Appraisal As Soon As You Start The Mortgage Process
Three Credit Repair Myths
This article was originally written to target new college
graduates. The advice is useful for anyone who thinks that there are quick
fixes for credit scores.
- Myth 1: Credit reports are always accurate and closely monitored. Never
assume that your credit report is correct. A recent study by
the FTC notes that one in five reports have errors, and that number could
actually be higher.
- Myth 2: Reporting an inaccuracy takes care of the issue. You must be
diligent in following up a dispute every 30-60 days until it is resolved.
- Myth 3: Repair will be timely. They’re quick to report you’re two days late
with a payment but slow to fix any errors.
Waiting to Refi Until 2014
No one really knows which way the rates will be going. But if you’re thinking
of waiting, here’s
three really good reasons to contact a professional loan
officer and review your options sooner rather than later.
- You’ll face higher standards to qualify for a loan. The
debt-to-income ratio is the amount of your total monthly debt as a percentage of
your total gross monthly income. Your debt includes things like credit card
bills, car loan payments, and the payment on the mortgage you want to get. This
number generally can’t be higher than 40 percent, says Jim Duffy, a mortgage
banker with Cole Taylor Mortgage in Atlanta, Georgia.So, the higher the mortgage
interest rate, the higher your monthly payment which means you need less debt
or it may be more difficult to qualify for the lowest rates that are available.
- You might have to pay higher fees and costs to get a lower
rate. If interest rates go up, points go up as well.
- You’ll pay more for your mortgage over the life of the
loan. If the rates go up, you’ll be paying more for interest which
increases the true cost of the loan over the term.
If you have any questions about loans or refinancing, contact a reputable
mortgage broker who will work with you to find the best options for your income,
debt, credit score, and timeline.
No comments:
Post a Comment