Please need help with mortgage loan stuff?
Me and my husband got pre-approved so we are now looking at houses. We went through WellsFargo about teo months ago and the lender approved us for an ARM. My realtor has her own lender and we are thinking about going with her lender instead so she can get us pre-approved for a fixed rate loan. What I am worried about it that I heard it can hurt your credit score if you have it checked/ran to many times it can hurt your score, is this true? I dont know what to do, in this situation should I just go with my realtors lender or try to work with the lender through wellsfargo and avoid having my credit ran again and having it possibly hurt our credit scores.
First of all credit checks have different levels-most do not hurt your credit at all. The only ones that do, sometimes considered “hard” inquiries (like for loans) can-but only by a few points at most AND only if there are a lot of them in a short period of time. Just a few in a month is not a problem so if you’re shopping around for a mortgage just do it smart. Ask for rates, terms and charges upfront using an apples-to-apples number, something simple like $100,000 and the kind of loan/term you plan to get so you can easily compare between the lenders. Don’t allow them to run any credit checks on you until after you’ve narrowed your choices down to just a few…or the one that you like. Really the only way you’ll get hurt is allowing a handful of lenders to all run a credit check on you within the same few weeks of your search. Anything you might lose for this goes right back on in a few months anyway so it’s not like it’s gone forever. It just looks suspicious when you have lots of lenders digging into your info all at the same time-that’s kind of the theory.
I would advise against going with a realtor’s “own lender.” Hopefully all you mean by this is it’s someone they suggest. I’ve got one of the best realtors in the world but just because she suggests vendors doesn’t mean it’s the right match for me so don’t let that sway you. Take it with a grain of salt, feel free to check them out but don’t think that lender is any better than the next until you see the numbers.
There’s a big difference between an ARM and a fixed loan. I think you better research different loan types first to see what’s the best match for you or at least talk to a banker you trust about this first. Also, 10 months is considered ancient with preapprovals. Usually they aren’t any good past a month or two. I know these are a lot of different suggestions but it sounds like you still are new to this and a mistake so early in your search for such a big thing could cost you thousands of dollars. That’s an expensive mistake no one needs to make. Good luck.
can i get approved for a mortgage loan at 19?
I was trying to find out of you guys think i have a realistic chance of getting approved for a loan. I want to get a loan for about 40-50k for a condo and i currently have 10k saved. I have had a credit card for two years and my credit score was over 700 last time i checked (although i don’t have a long credit history because i only have one card). I go to school full time and i work to jobs. I gross about 12-14k a year.
Not very likely. They don’t like to lend to people that young and your income isn’t high enough. If you can get someone like a parent to cosign, then you can get the loan. You need to have more of a credit history after you turned 18. (They will assume anything before then is your parent’s doing.)
I have to wonder where you can buy a condo for that price.
Try when you are 21. And maybe get a second credit card in the meantime. Make sure it’s a general card (mastercard or visa type) rather than just a gas or store card.
Is it possible to get a home equity loan or 2nd mortgage……?
Is it possible to get a home equity loan or 2nd mortgage with a poor credit score. The one thing we have going for us is that our house is completely paid off. We have no credit cards and our vehicles are also paid off. The only debt we have are some medical bills that we are making payments on which is around $2500. My wife and I are both employed and make decent income of around $6000 monthly. We just have some things coming up to where we would like a loan for around $15,000. I think our credit score is around 590 🙁 . (We ran in to some difficulty when I lost my job and had a baby born with a disability and medical bills piled up). But with that much equity and such a low score would there be a loan company that would work with us? Would our local bank be able to help or should I check around on the net that specialize in bad credit loans? Any recommendations?
Thank you all so much for such great answers and some great explanations! Our original loan for our house was over 10 years ago so I don’t remember much about how all of that loan stuff works. We have never checked in to a equity loan so I know nothing about them except for some research on the net. I think I’ll start with my local bank and go from there. Thank you all!
Danity……I have no idea what you meant by your answer!
One more quick note. I was not working for quite some time due to a back injury that ended in surgery. I have now been back to work for a little over a year now though. My wife has been a teacher for 12 years. So, we had a 2 year span to where our credit went down the drain but the last year have been on time with what little debts we do have. I was also thinking it would be difficult to raise our credit score without having any credit out there. Maybe starting with a credit card and just using it for small purchases and paying off the balance each month would be one way. I was also thinking with the equity loan would really help rebuild our credit with timely payments. My son needs some extensive dental work and that is why we are wanting a equity loan to pay for that and other services he needs due to his disability.
Yes, it is POSSIBLE – but it may not be EASY.
What banks are looking for in current economic times are borrowers with a strong credit history who can demonstrate that they are in a strong position to pay their loans.
The value of your collateral, while very important, is still only one piece of the puzzle. Lending (especially on a large scale) is largely a game of calculated risk. Even though you have a valuable home, you will not get a mortgage if the risk of default is too great.
Remember to put yourself in the shoes of the bank – you’re asking to borrow a significant amount of money and your recent life events may suggest you would have difficulty making your payments on time. Even though your property is valuable, if the unthinkable were to happen (a foreclosure), it will still take several thousand dollars for the bank to repossess the home. Not to mention, the bank wouldn’t gain possession of the home for about 6 to 9 months after the litigation and the redemption period are complete. Then tack on possibly several more months to actually sell the home. In the meantime, they’re getting no income from the property and will have to pay taxes and the utility bills.
Nevertheless, I don’t think you should be counted out. If you are serious about getting a Home Equity loan or a mortgage, your plan should be to convince the bank that this is a temporary bump in the road. You need to SHOW them HARD EVIDENCE that your finances are improving or will improve and that you’ve got a long term strategy to get this situation turned around.
Even loan officers are persons who understand that unfortunate things can happen, but you can’t walk away from an appointment and leave them with the impression that you’re going to continue “business as usual” with the status quo.
Good luck! I hope you find something suitable. 🙂
does checking credit score cost you points?
I am getting pre-approval for a mortgage loan and each lender wants to check my credit score. Someone told me that it costs you points to run a credit check. How many points does it cost?
It does cost you “points” but creditors are more understandable when it is a series of credit checks for the same approval around the same time..instead of different hits at different times
Would I be able to get a mortgage loan on my income?
I’m thinking of purchasing my first home but I’m not sure if I would be able to get a loan on my income. I earn about $20,000 annual plus I get about $5,000 in child support per year.
I currently rent $750 per month.
I haven’t checked all 3 credit scores but my FICO with Equifax is 664.
any answers are appreciated.. thanks
my debt is under $3,000.. I haven’t gotten prequalified so I have no idea what loan amount I could possibly get but I would consider something under $100K.
oh and I’m at my current job for 1 1/2 years and previous for 3 years w/no interruptions in employment history.
A score of 664 is not great, but it isn’t terrible either. Since you are already paying $750 a month in rent, I’d say you are being reasonable in looking for a home priced under $100,000. Your income might be looked at negatively though (in spite of the fact that you are handling $750 a month just fine). Based on your income, you may have to settle for a loan of about $60,000 to $70,000. That isn’t a BAD thing though. If you spend time shopping around and not get into a hell fired hurry, you should be able to find a decent home in that price range (especially in this market). Obviously that’s going to depend on where you’re looking though. In some places, it will but you an older, sturdy, charming 3 bedroom home…..but in others, it wont even buy you the mailbox!! A mortgage loan in that range will cost you a good deal less than what you’re paying in rent, but how MUCH less depends on your credit and down payment. If you have good credit, it’s possible to get a loan for no money down but your interest rate (and monthly note) will be a bit higher. Still less than what you’re paying on rent though, I’m sure. BUT be warned—-the closing costs can eat you alive!! Sometimes you can ask the seller to assist you with them but they wont do that unless they got a good price for their house and, of course, your objective is to get the house for as cheap as possible. On a house of 60-70 thousand, your closing costs will likely be around 2 thousand….maybe a little higher. When you go to a bank to begin discussions, all you need to do is walk in and ask for a pre-QUALIFICATION….not a pre-approval. Don’t even bother with a pre-approval because it isn’t a guarantee for anything. The lender will pull your credit and let you know in a day or so if you definitely are approved for a loan or not. Then the loan will just kind of be sitting around waiting on you to find the perfect house. (You wont be making loan payments yet, of course). The lender will give you a pre-qualification letter, which is like gold to the sellers!! When you find a house you want, whip out that letter and they will immediately know you HAVE the financing and are a serious buyer. You can ask the lender to check you out for pre-qualification on a $100,000 house, AND an $80,000 house. He’ll run the figures and present you with the findings to see which loan you can best afford. When you chose, he’ll provide you with a “Good Faith Estimate”, which will be an itemization of all the closing costs involved, and how much money will go into escrow for taxes and PMI. When you find a house you like, one of the first things you need to do is to simply CALL your insurance agent (usually the one who carries your car will be the cheapest) and ask for a quote on the yearly homeowners insurance cost. You’ll need to take that cost into consideration too when figuring out what you can afford. Buying a house can be fun, but usually only after it’s all said and done with!!
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