Mortgage Information

If you're like most buyers, a home is the most expensive purchase you'll ever make, and you'll probably need some form of financing.

There are many lending institutions that offer a variety of mortgage products. Financing options and rates can vary widely, so it is important to do your research and shop around to ensure you get the mortgage that best meets your needs at the best price.

I would be happy to refer you to some very good mortgage contacts I have in Warren, or to help you in any other way I can to secure the best possible rate for your home purchase.

Use the mortgage calculators below to assist you in making some decisions around financing your new home.

Mortgage Qualification Calculator

This calculator will help you determine how much money you qualify to borrow. The results are informal. You will be subject to a credit approval from your financial institution taking into consideration existing debt load, amount of down payment, income and other variables.

Mortgage Payment Calculator & Amortization Table

This calculator will help you determine what your mortgage payments will be based on purchase price, interest rate and mortgage term, as well as other factors. The amortization table shows what the interest and principal payments will be over the term of the mortgage.

 

Credit Report and Identity theft!

Ron and I find that most of the people we work with do not know what is showing up on their credit report, what their credit score is and how it can be affected by our everyday actions. I have come across a few articles that might give you insight into one of the most important items associated to you “Your Credit Score”.

 

Q.) Who checks your credit score?

A.) Employers, Landlords, all Lenders, credit card companies when offering a new card, local stores and many, many more.

This score is used more and more as it tells a clear story as to what type of a responsible person you are and most people don’t even know how to check it or how a simple thing like saying yes I’ll fill-out that Sears, Lowes or Fashion Bug Credit Card Application to get an additional 10% off my purchase can affect you for years to come.

Every time someone checks your credit it is recorded, these inquiries even if you did not purchase can lower your credit score!

With all the advertising being done about credit scores most of it has fees associated with them. Here is a site that you can use to access your credit reports without fees, Free Credit Report: http://www.annualcreditreport.com <http://www.annualcreditreport.com/> . By federal law you have the right to check your credit report FOR FREE every six months. There are three credit reporting agencies: Experian, TransUnion and Equifax so if you check one agency every two months by the time you are ready to check that same agency again 6 month will have past. This allows you to see what is happening to your score and in the case of identity theft or false claims you will be able to react more quickly to solve the problem.

Your report will tell you who you have had or currently have credit or outstanding bills with, from Banks to your Dentist. Everything will be on the report. The credit scoring companies take all this information and condense it into a number score i.e. FICO score. This number stemmed from Fair Isaac’s rating operation and is currently used by all three major credit bureaus: Experian, TransUnion and Equifax. Recently, FICO revealed how various activities will likely affect borrower’s scores; this information was traditionally kept hidden away as part of the statistical mystique of the mortgage finance system.

Recently, a Real Estate Today article was referenced by realestateconnections.tv/blog <http://www.realestateconnections.tv/blog> (and this same table has also been reported elsewhere) showing the following sample results:

For Borrowers with a sub-prime 680 score (and an eight-year credit history with two delinquencies)

* Maxing out a credit card: reduces FICO by 10-30 points

* Produces a one-month delinquent payment: reduces FICO by 60-80 points

* Settles a credit card balance without full payment: reduces FICO by 45-65 points

* Agrees to a short sale: reduces FICO by 55-75 points

* Accepts a foreclosure: reduces FICO by 85-105 points

* Declares bankruptcy: reduces FICO by 130-150 points

Consider the impacts on a less risky borrower:

For Borrowers with an excellent 780 score (or one who has not missed a payment in 15 years)

* Maxing out a credit card: reduces FICO by 25-45 points

* Produces a one-month delinquent payment: reduces FICO by 90-110 points

* Settles a credit card balance without full payment: reduces FICO by 105-125 points

* Agrees to a short sale: reduces FICO by 115-135 points

* Accepts a foreclosure: reduces FICO by 140-160 points

* Declares bankruptcy: reduces FICO by 220-240 points

Clearly, it is difficult to get a good FICO score and over time, to keep it. As many in the industry have noted, taking care of your credit record is quite important and as the evidence above shows, your record is sensitive to any lapses or mistakes

Theft: Most people don’t even know their identity has be stolen until they go to make a purchase that requires a loan. If you have your identity stolen you need to File a Complaint with the FTC

Filing a complaint with the FTC is one of several important steps that victims of identity theft should take. The links below will help you to file a complaint with the FTC, and how you can get the protections that you, as a victim of ID theft, may be entitled to. If you’re ready to go directly to the Complaint Form, click here <https://www.ftccomplaintassistant.gov/> .