Financing
Your Home
Buying a
home can be overwhelming! That’s why it’s
so important to find a reliable, qualified Realtor! With the Goebel Team, you have just that-
Qualified, Reliable, Trusted, & Proven!
Mick and Jane Goebel are all those things and more. They can guide you through the home buying
process and they do it not only with confidence, but with HEART! They truly care about their clients and
making sure the process is as smooth and seamless as possible. One of the most overwhelming aspects of buying
a home is the financing. Mick and Jane
can help you not only find the right home but also help you find the right
lender for your specific needs. Listed
below are some of the facts about the lending process and getting pre-approved
for one of, if not, THE most important purchase you’ll ever make. Read through the information below and click
on the link for more info! When you are
ready, just give us a call and we’ll be glad to help you navigate the
unfamiliar territory. In the meantime,
browse our listings to find your new home!
Office – 828.837.7322 Cell – 828.361.9442
How your credit score affects your
mortgage rate
The most influential
determinant of your mortgage rate is your credit score. The higher your credit
score, the lower the interest rate on the mortgage. Borrowers
with high credit scores tend to get lower interest rates on mortgages than
borrowers with low credit scores.
- A credit score of 740 or higher qualifies for the best interest rates from most lenders.
- It is difficult, but possible, to get a mortgage with a credit score under 620.
- The difference between the best and worst rates can vary by a full percentage point and a half.
A credit score of 740 or more should
qualify for the best mortgage rates from most lenders. Depending on the lender,
the mortgage rates offered to the highest and lowest credit tiers can vary as
much as a full percentage point and a half, says Louis Spagnuolo, a former vice
president of mortgage banking at WCS Lending in Boca Raton, Florida.
·
What lenders
look for
o Lenders prefer borrowers with low
balances, a long history of on-time payments and a mix of credit utilization
o Lenders look at several variables
on the credit report:
- Outstanding debt
- The outstanding debt relative to the total available debt
- The length of the credit history
- The pursuit of new credit -- how many inquiries are on your report
·
How to clean
up your credit
o Check your credit report a year or
so before buying a home.
o Correct errors in the report and
change ways you use credit to improve your score.
·
Correct and
wait
o All 3 credit bureaus make it easy
to dispute errors online
o If everything is correct, pay down
balances and let time do the rest
o The credit reporting agencies do
charge a fee if you want to know your credit score. Lenders look at all 3
scores and use the middle one
·
What else
you can do
o If you're buying a home soon, try
not to apply for new credit
o Though it's not always avoidable
-- for instance, if you need a car loan or college financing -- you should
resist opening several new lines of credit in a short time.
o Multiple new accounts can decrease
your credit score.
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