Mortgage Qualifications

Loan Pre-Qualification

The advantages of becomeing Pre-Qualified:

• Know how much house your can afford
• Know how much cash you will need for the down payment
• Simplifies pre-approval

Items considered when pre-qualifying for a mortgage loan include:

• Employment History
• Credit History and Scores
• Monthly Income and Expenses

With my knowlege of the mortgage market, I can help you make an informed decision as to the type of loan you'll want.  There are many different types of loans to consider- FHA, VA, Conventional and even Bad Credit Loans.  We'll find the best loan for your situation.

Scoring your Credit - How's your FICO

In today's increasingly automated society, it should come as no surprise that wehen you apply for a mortgage, your ability to pay can be reduced to a single number.  All the years you've been paying your mortgage, car payments, and credit cards bills can be analyzed, sliced, diced, spindled and mutilated into a single indicator fo whether you're likely to meet your future obligations.

All three of the major credit reporting agencies (Equifax, Experian and TransUnion) use a slightly different system to arrive at a score.  The best known is called the FICO score, based on a model developed by Fair Isaac and Company (hense the name) and used by Experian.  Equifax's model is called BEACON, while TransUnion uses EMPIRICA.  While each of the models considers a range of data available in your credit report, the primary factors are:

• Credit History - How long have you had credit?
• Payment History - Do you pay your bills on time?
• Credit Card Balances - How much do you owe on how many accounts?
• Credit Inquiries - How many times have you had your credit checked?

Each of these, and other items, are assigned a value and a weight.  The results ae added up and distilled into a single number.  FICO scores range from 300 to 800, with higher being better.  Typical home buyers likely find their scores falling between 600 and 800. 

FICO scores are used for more than just determining whether or not you qualify for a mortgage.  Higher scores indicate your are a better credit risk, and thus may qualify for a better mortgage rate.

Armed with this information, you will be a more informed consumer and better positioned to obtain the most favorable mortgage available to you.