Wallowa County Real Estate
Jayne Warrener's Blog
May 9, 2008
When you decide to become a homeowner, there will be numerous steps that you will have to go through, which can often seem scary. I highly recommend using a lender that you have heard about from a referral from their past client, or your Realtor. As your Realtor, I can give you a list of lenders that are used locally that have proven their worth. A lender with a proven “track record” of providing good service, is honest, and has integrity will always be your best option.
Not only are you about to agree to taking on the biggest debt of your life, often one that represents two to three times your annual income, (there is the scary part!), but you're also confronted with piles of paperwork, flurries of fees and a tidal wave of terms, from amortization to title insurance, whose meaning is fuzzy at best.
Very few people have gone through the process often enough in their lifetime to be knowledgeable in the terms dealing with a loan. Couple this with the often confusing and pressure-filled atmosphere, and it's easy to make some mistakes. But, don't let this experience become overwhelming, be proactive!
Here are some things to do to make the steps a little less daunting:
Choose your Realtor carefully! By choosing a Realtor that is knowledgeable about the market, the trends, as well as your needs, will eliminate a lot of your stresses. Your Realtor should be available to you by either phone, or email, and willing to spend the time with you to determine what kind of home or property that you are looking for. Your Realtor should never push you, make you uncomfortable, or appear that your time is not valuable. Your Realtor should be willing to spend the time needed to walk you through every step of this process, so do you research and choose your Realtor carefully!
Look at your credit, and if there are errors--FIX THEM!
Mortgage brokers say they're confounded at the number of buyers who apply for a mortgage with their fingers crossed, hoping their credit will allow them to qualify for a loan. Before you even think about applying for a mortgage, obtain copies of your credit report and your FICO credit score.
Your FICO score is the three-digit number that's used in 75% of mortgage-lending decisions. You can order your FICO score on the Web for a fee of $14.95, which includes a copy of your credit report. Doing this at least six months in advance should give you plenty of time to challenge any errors on your report and ensure that they're removed by the time you're ready to apply for a loan. You can also see the legitimate factors that are hurting your score and do something about them, such as paying off an overdue bill or paying down credit card debt.
Once you have learned your credit score, you will know if you need to wait for a while and increase that number. The higher your credit score, the better rate you will receive on your mortgage. FICO score of 700 and higher means Excellent or Very Good credit. Certain lenders offer better rates and/or discounts if you are over 720, 740, etc. FICO score from 680 to 699 means Good. Pretty much you can get a normal loan. FICO score from 620 to 679 is OK. You won't be denied but the terms are not going to be too generous.
If I can be of any help, just give me a call and I’ll do my best to get you through the process. Have a great week - Jayne