Mortgage & Refinancing Information

Rates May Be Rising: Mortgage And Refinancing Preparation Made Simple For You


Buying a home is probably the single largest investment most people make in a lifetime. By preparing yourself and your credit before a home purchase or refinance, you can ensure a smooth finance process and can potentially save thousands on your loan. Improve your financial profile now so you can take advantage of the low interest rates before they disappear.

Start by checking your credit

  • To get the best possible mortgage rate, make sure your credit history is healthy and accurate. Aim to raise your credit score above 650 in order to qualify for most prime loans.

  • If your credit score is not quite 650, focus your efforts on paying bills on time, reducing your debt balances, avoiding new inquiries and clearing negative inaccuracies from your credit report.

  • Make sure the information on your report is correct and fix any problems you discover. Give yourself 30-90 days for correcting inaccuracies. You can learn more online in the Credit Learning Center http://www.legalhelper.ws/credit-reports-online.aspx.

  • Found an error while reviewing your credit with the lender? Ask about the "rapid rescoring" process where you can submit a dispute and potentially improve your credit in 72 hours.

Figure out how much you can afford

  • The rule of thumb is that most borrowers can afford a home that runs about two-and-one-half times their annual salary.

  • Calculate your loan-to-value ratio to see how much you can afford to borrow by dividing the loan amount by the property's value. If your loan-to-value ratio is above 80 percent your rates may increase significantly. Find a less expensive home or save up for a down payment to lower this percentage.

  • Calculate your debt-to-income ratio by adding up your monthly debts and dividing by your monthly income. A debt-to-income ratio under 20-39 percent is usually considered good and will help you be perceived as financially stable.

  • Don't be afraid to start small. Just because you may qualify for a large loan doesn't mean that it is a smart financial decision to buy as large a home as possible. Take a careful look at your family budget and your housing needs before you decide how much you can really afford.

Be a smart borrower this summer and save thousands by preparing your credit before you apply for a loan. Find out the loan rate you deserve at http://www.legalhelper.ws/credit-reports-online-service7.aspx.

About The Author

Jeffrey Broobin is a financial security specialist that helps people to solve their financial issues and be happy and successful within their life.

Website - www.legalhelper.ws

Email: jeffreyb@legalhelper.ws


MORE RESOURCES:

Borrowers feel fallout from mortgage giants' woes
Salt Lake Tribune, United States - 16 hours ago
By Alan Zibel AP Jeff Jaye, a mortgage broker in Northern California, used to rely on homeowners looking to refinance their loans for more than two-thirds ...


Housing Bill: A Step Toward Repairing the Damage
MarketWatch - Jul 30, 2008
WASHINGTON, July 30, 2008 /PRNewswire-USNewswire via COMTEX/ -- Today President Bush signed into law a housing bill passed by Congress aimed at stabilizing ...
Homeowner aid act raises worries on scope, delays The Associated Press
Housing Help WWMT
Housing bill puts taxpayers on the hook Battle Creek Enquirer
WKTV - KOLD-TV
all 121 news articles


Housing And Economic Recovery Act
Mondaq News Alerts (subscription), UK - 8 hours ago
The Act also expands the target population served by the FHA and creates the "Hope for Homeowners" voluntary FHA-insured mortgage refinance program. ...


MLive.com

Family's money woes center on the house
MLive.com, MI - Aug 2, 2008
File: Leisa Thompson, The Ann Arbor NewsJay and Betty Jahnke: Still worried about their mortgage payment and tuition bills for their daughter. ...


Ask the Biz Brain
The Star-Ledger - NJ.com, NJ - Aug 11, 2008
I have a pre-payment penalty on my mortgage loan for three years. I'd like to refinance sooner. Is there a way a lender can waive the penalty? ...


ABC News

Rescue Package Awaits Bush Signature
Christian Broadcasting Network, VA - Jul 28, 2008
The bill, approved by the Senate in a rare weekend session, includes help for 400000 people at risk of foreclosure. If homeowners can not afford their ...
Video: House Bails Out Lenders CBS
all 5,369 news articles


Buyers flock to FHA, government-backed loans
Inman.com (subscription), CA - Aug 18, 2008
... by raising loan limits and creating new products that allow borrowers who are behind on their existing mortgage refinance into more affordable loans. ...


Wachovia Posts Loss, Exits Wholesale Origination Business
Mortgageorb, CT - Jul 22, 2008
By MortgageOrb.com on Tuesday 22 July 2008 Consistent with previously announced expectations, Charlotte, NC-based Wachovia Corp. has reported a net loss in ...


DD Mortgage plans to open branches in İzmir, Ankara
Turkish Daily News (subscription), Turkey - Aug 15, 2008
Focus areas include first-time home buyers, second home buyers, upgraders, buy to let, let to buy, university mortgage, refinance, Turkish people residing ...


How Home Equity Can Help You Slash Debt
WJACtv.com, PA - Aug 14, 2008
To access hundreds of potential lenders for mortgage, refinance or home equity line of credit products, visit www.lowermybills.com. ...

Mortgage-Refinance - Google News

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