Your Questions About Check My Mortgage

Nancy asks…

Will getting pre-approved by mulitple mortgage companies hurt my credit?

I am looking into buying a house for the first time, and need to get pre-approved for financing. I have had several people tell me to check with different mortgage companies, as the rates/fees can vary. However, will multiple approvals like this hurt my credit and my chances at getting pre-approved? If so, does it really hurt my credit that bad? Or is it somewhat inconsequential?

Thanks!

admin answers:

All inquiries done in a 3 week window are treated as one.
This is to allow a customer to “shop around” for a good interest rate.
This does not apply to credit card applications.
Inquries affect your score by 1 or 2 points. Out of an 850 possible Fico score.
They affect your score for one year, but remain on your report for 2 years.

If you happen to go passed that 3 week window, don’t let this bother you.
Mortgage lenders look at your reports. They will see you have been shopping around for the very best rate, and will overlook any damage.

Go to BankRate.com and look on the right for the average mortgage rates.
There may be a link that you can hit to type in your area and see which companies are offering the best rates.
Please do not fall for variable rates, ARMs, options, points, adjustables, 5/1’s, or 5/5.
^ banks are still trying to scam people with bad mortgages
There is a great book that you may consider getting from a bookstore or library.
Home Buying for Dummies
^ not and insult, just the best investment you will ever make.
It will teach you everything about home inspections, mortgages, the buying process, realtors, etc

Mandy asks…

Credit Check on Spouse Home Mortgage in TX?

Hello,

My husband and I live in Texas and recently decided to make a home purchase. He became pre-approved with them only running him, since I have no income and bad credit (stupid decisions in my youth that I am still working on fixing).

With the actual paperwork we submitted to the seller from the realtor, she had me sign as well since she was saying we live in Texas, thus my name needs to be on there since we’re married. Does this mean that our lender will need to check my credit as well since the title company now has my name? Do we need to call them to take my name off?

Thank you for any answers in advance. I have been worried for some time now that they will end up needing to run my credit and it will ruin our chances.

admin answers:

I would not worry about it.
The lender may have your name but they do not have your social security number. They obviously cannot run your credit without it.
If they call and ask for it, tell the lender that you do not wish for your information to be included since you are currently not employed.
I would doubt that the lender can force the issue and why would they? They want to make the sale so it should NOT be an issue.
Dont call and make them take the stuff off of anything, you dont want to scare them or send off any red flags.

To add peace of mind to you. Call a different lender and ask them your question (make it seem like your husband has the bad credit and does not work when you call) and see what they say.

I think that you will find that the lender wont care either way. If they push the issue tell your husband to tell them that the two of you are getting seperated soon.

Again, dont worry about it, there is a way around it…ENJOY your new house!

Joseph asks…

Should I payoff my mortgage by writing a line of credit check?

My mortgage rate is now 5.5% – line of credit is only 3.5% – but there is only 2 years left on line of credit; I think I can refinance at that time if needed; but my plan is to payoff within 2 years.

admin answers:

Pay very careful attention to how mortgage payments are amortized. During the first few years of your mortgage over 90% of your payment is credited to interest. Likewise at the end of your mortgage term the reverse is true – most of the interest was paid years and years ago.

Call the mortgage company first and ask for a buyout figure. Divide that figure by the number of monthly payments remaining to see what portion of your monthly payment today goes to principle, and what portion to interest. If at the end of your mortgage your effective interest rate will be well below the line of credit.

You don’t know for certain that your can refinance in the future. Market can change, you could lose your job, your health could change. Why paint yourself into such a corner?

Mary asks…

if my house forecloses does my mortgage company send me a check if i move out right away?

My parents had a house foreclose a long time ago when the economy wasn’t even bad and they got a check from the mortgage company to move out right away. I took a pay cut and my wife was laid off and my house should be going into foreclosure any day and I have no money to move yet. I tried to get help from lender since nov last year and no dice, so…..foreclosure it is. No problem but I was wondering how to get a check as well.

admin answers:

I have no idea how your parents got any type of check. Generally when a property goes into foreclosure it is because you have not made your payments for several months.ie you owe them money. So I have no idea why they would send you any. In fact, once they sell your home, they will probably sue you for the difference. I don’t mean to be the one to give you the bad news, but you should prepare for this mentally. Good luck

John asks…

my husband and i received a check from the mortgage company for an escrow overage.?

my husband and i received a check from the mortgage company for an escrow overage..we split all of our bills in half..he pays the house note, and i pay all the other bills which equal to the house note (daycare, groceries, lights, phone, etc.) ..well, i say we should split the escrow money in half but he doesnt think we should..he thinks that because he pays the house note in his portion of the bills, that he should be able to keep all of the money ( about $1100) .. is this fair?

admin answers:

As a couple, your bills belong to both of you. If you both have an income and to make paying debts simpler, you’ve agreed to split up the debts to be quite equal, it doesn’t seem like he’s really paying the house note on his own. Just like you’re not really paying for the utilities and food for yourself. If that’s the case, you don’t belong in the house and he doesn’t eat the food and benefit from the utilities you pay for. See how silly that sounds? You are a team. You’ve simplified the financial situation by splitting things up equally and in doing so, it only confirms that you are in this TOGETHER. The excess in escrow should be shared among you two. Spend it wisely and let this be one way you show one another the love you have for each other and the equality you truly believe you share in this marriage. To play the game of this is mine and that is yours is only a step in the wrong direction:a step that may lead to disarray and a total destruction of the marriage union.

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