Ask Sue!

Question:

Just because I qualify for a certain amount of money for a loan, should I really go that high?

Answer:

Absolutely not.  It is very important that you consider all aspects of owning a home, i.e. utilities, maintenance, etc, and also any other living expenses you may have.  These are factors your Lender does not consider for you when approving you for a loan.  But they are real costs that will affect your monthly budget.  Be sure to budget a comfortable payment well within your means, instead of the maximum you are qualified for.

If you have a mortgage question, ask away!  Either:

1. E-mail asksue@pcMortgageAdvisor.com
   
   ~ OR ~
   
2. Leave a comment here on the blog below
   -- If you include your e-mail address we will respond to you directly.

Check back next Friday for more mortgage answers!

Your personal mortgage advisor for life!

Ask Sue!

Friday is here, so here is our featured mortgage question answered:

Question:

Do I really need a real estate agent to help me purchase a new home?

Answer:

While working with a Realtor is NOT a requirement, it is many times in your best interest to work with a licensed Realtor.  Keep in mind that in most cases, the Seller is paying the Realtor fee.  You, as the buyer, are not.  The Realtor knows how to negotiate in your best interest without bringing emotions into the transaction.

If you have a mortgage question, ask away!  Either:

1. E-mail asksue@pcMortgageAdvisor.com
   
   ~ OR ~
2. Leave a comment here on the blog below
   -- If you include your e-mail address we will respond to you directly.

Check back next Friday for more mortgage answers!

Your personal mortgage advisor for life!

10 Do's and Don'ts of Credit

The following are some helpful tips to avoid the credit mistakes that many borrowers make during the loan process:

1. DON’T APPLY FOR NEW CREDIT OF ANY KIND. Including those “You have been pre-approved” credit card invitations that you receive in the mail. Every time you have your credit pulled by a potential creditor or lender, you lose points from your credit score immediately. Depending on the elements in your current credit report, you could lose anywhere from 2-50 points for one hard inquiry.
2. DON’T PAY OFF COLLECTIONS OR CHARGE OFFS during the loan process. Paying collections will decrease the credit score immediately due to the date of last activity becoming recent. If you want to pay off old accounts, do it through escrow and make sure that 1) you validate that the debt is yours, and 2) that the creditor agrees to give you a letter of deletion.
3. DON’T CLOSE CREDIT CARD ACCOUNTS. If you close a credit card account, it will appear to the FICO that your debt ratio has gone up. Also, closing a card will affect other factors in the score such as length of credit history. If you have to close a credit card account, do it after closing, and make sure it is a more recent account.
4. DON’T MAX OUT OR OVER CHARGE ON YOUR CREDIT CARD ACCOUNTS. This is the fastest way to bring your score down 50-100 points immediately. Try to keep your credit card balances below 30% of their available limit at all times during the loan process. If you decide to pay down balances, do it across the board. Meaning, make an extra payment on all of your cards at the same time.
5. DON’T CONSOLIDATE YOUR DEBT ONTO 1 OR 2 CREDIT CARDS. It seems like it would be the smart thing to do, however, when you consolidate all of your debt onto one card, it appears that you are maxed out on that card, and the system will penalize you as mentioned above in 4. If you want to save money on credit card interest rates, wait until after closing.
6. DON’T DO ANYTHING THAT WILL CAUSE A RED FLAG TO BE RAISED BY THE SCORING SYSTEM. This would include adding new accounts, co-signing on a loan, changing your name or address with the bureaus. The less activity on your reports during the loan process, the better.
7. DO JOIN A CREDIT WATCH PROGRAM. If you join a credit watch program, you can check your reports weekly, or even daily depending on the program you select. (When you pull your own reports, you don’t get dinged for a hard inquiry.) This way, if something does show up on your reports that has caused your score to go down, you will know it immediately, and you may be able to take care of the problem before closing.
8. DO STAY CURRENT ON EXISTING ACCOUNTS, like your mortgage and car payments. One 30-day late can cost you anywhere from 30-75 points.
9. DO CONTINUE TO USE YOUR CREDIT AS NORMAL. Red Flags are raised easily with the scoring system. If it appears that you are changing your pattern, it will raise a red flag, and your score could go down.
10. DO CALL YOUR MORTGAGE ADVISOR if you receive something in the mail from a creditor or collection agency that you believe may affect your score during the loan process. Your Mortgage Advisor may be able to supply you with the resources you need to stop any derogatory reporting to the bureaus

For more information about Credit, visit my website: pcmortgageadvisor.com/credit101.htm

If you ever have any questions, please call us!  We would be glad to help you!  (520) 744-2292

Your Personal Consultant for Mortgage Advice!

A Little About Fairway Independent Mortgage Corp.

With “National Strength and Hometown Service,” Fairway Independent Mortgage Corporation is the 20th largest mortgage bank in the nation with branches in 45 states - 8 of them right here in Southern Arizona.  In the highly competitive world of mortgage financing, Fairway is a company where customer service is a way of life.  Because of Fairway's size and loan volume, we are able to provide the best price and loan product to suit every customer's needs.  While the best mortgage rate may be the initial reason for choosing a lender, quick turn-around and service are what really set Fairway apart.  Start to finish, everything is done in-house.  With over 50 underwriters on staff, underwriting turn-times rarely exceed 48 hours.  Add in table funding and preliminary loan documents to title upon conditional loan approval and you can see how Fairway has mastered the recipe for success.

Contact me today to see how Fairway and I can help you with your mortgage needs!

Your personal mortgage advisor for life!