Cheralyn Whetstone Real Estate Team
Building Relationships, One Home At A Time
Contact Details
505 S. Independence Blvd
Suite 101
Virginia Beach, VA 23452
Phone: 757-430-1853 Mobile: 757-270-9920 Fax: 757-447-3668 Email Cheralyn

MORTGAGE NEWS YOU CAN USE!


 

¨      MORTGAGE NEWS YOU CAN USE
¨      CREDIT SCORES AND RISK BASED PRICING
¨      VA Loans
¡        No minimum credit score
¡        Pricing is not affected by credit scores
¨      FHA
¡        Minimum credit score is 580
¡        Pricing is not affected by credit scores
¨      Conventional loans have pricing adjustments for Loan to Value (LTV), terms greater than 15 years, and credit scores:
¨      CREDIT SCORES AND RISK BASED PRICING CON’T
¨      If the credit score is greater than or equal to 740, there are no add ons.
¨      If the credit score is between 720 and 739 and the LTV is greater than 75% (less than or equal to 80%), there is a ¼ point add on. The reason for this is that there is no Mortgage Insurance if the loan goes bad, so the risk is higher.
¨      If the credit score is between 700 and 719, there is a minimum point adjustment of ½ point.
¨      If the credit score is between 680 and 699, there is a point adjustment between ½ and 1 ½ points.
¨      CREDIT SCORES AND RISK BASED PRICING CON’T
¨      If the credit score is between 660 and 679, there is a point adjustment between 1 and 2 1/2 points.
¨      If the credit score is between 640 and 659, there is a point adjustment between 1 ¼ and 3 points.
¨      Usually these adjustments cannot be absorbed into the rate.
¨      GUIDELINES ON ALL LOAN TYPES ARE SUBJECT TO CHANGE DAILY.
 

Six Simple Steps to Ensure a Smooth Home Purchase


Buying a home can be an emotional, time-consuming, and complex process. There are a few things that you can do to help make the process go as smooth as possible:

1. Check your credit.
Before you apply for a home loan, regardless of your credit, it's a smart idea to obtain a copy of your credit report from the three major credit bureaus and review the information. If there are errors or things that need to be addressed, it's easier to address them before you have found a house, than after you have found a house and are trying to close your loan.

If you know that there are a few blemishes on your credit, let your lender know what they are, why they are there, and why you are a still good credit risk. Lenders look at your credit to determine how likely you will pay back the loan. If you had extenuating circumstances - like a loss of a job or medical bills - let them know so that they understand that it is not likely to happen again in the future.

2. Get approved before you buy.
An approval means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you have found a home to purchase. As long as the home appraises for at least the purchase price, the loan should close.

Getting approved also gives you an advantage over other buyers. Your firm approval makes it easier for you to negotiate on the price of a home, than a person who is not approved or is pre-qualified.

While getting pre-qualified may sound official, it is really just getting an idea of what you can afford. Its having a person plug in a few numbers that you give them - your monthly income and your monthly debt - and getting an approximate payment calculated. From the payment, the calculator can approximate the house price range that you can afford. No information is verified. Because your assets, income or credit is not verified, a pre-qualification has little value when purchasing a home.

3. Find a great buyer's agent.
Traditionally real estate agents represent the sellers in a transaction. When you are not working with a buyer's agent, they are less likely to negotiate the best price or contingencies for you.

A buyer's agent's job and fiduciary responsibility (meaning legal duty) is to you, the buyer. Before working with an agent, establish if they are a buyer's agent or a seller's agent. After spending a lot of time with a Realtor, it's natural to feel like you're a team. But if they are not negotiating for you, then they are not on your team.

For the remaining 3 steps, simply download the full report and they will be emailed to you immediately!

Six Simple Steps to Ensure a Smooth Home Purchase

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