Additional Listings News Buyer/Seller Tips Local Services Meet Our Team Contact Us   Open House Helpful Links Relocation Mortgage Info Calculator Home Repair Mortgage Info Brian Bohlman Registered Mortgage Broker Managing Partner 265 Post Ave, Suite 120 Westbury, NY 11590 Phone: 516.997.9180 Ext. 16 Fax: 516.997.9186 Email: newcastle11590@yahoo.com When determining which mortgage program borrowers qualify for, there are 3 things that all lenders focus on (all lenders, whether they are a bank, broker, banker, etc.): Credit: Credit is the most important of the 3. The higher the score, the more programs available to the borrower. LTV: Loan to Value. What percentage of risk is the lender making.     Example: Is the lender lending 90% of the purchase price or 80% or 100% On a Purchase, the greater the down payment, the more programs available to the borrower. On a Re-Fi, It all comes down to the loan amount in relation to the appraised value. Income: Can we verify enough income to support the loan. If we have enough income, we choose a Full Documentation program. If we don’t have enough income, we look into Stated Income programs or No Doc programs. If the borrower is strong in all 3 categories, then the borrower will qualify for the best interest rates in the market place. If the borrower has strong credit and a good down payment, (10% or better) then not verifying income isn’t a big deal. We may be able to go Stated Income and get very competitive rates. Poor credit is the toughest obstacle to overcome, even if the borrower can show enough income. Mortgage programs are available to these borrowers, but at higher rates. Points: Points are always the big question. Many mortgage companies charge points just to charge points. They make more $$$$. The idea of paying points is (supposed to be) to pre-pay the interest up front in order to get a lower rate for the term of the loan. It should be completely up to the borrower if they want to pay points. Usually 1 point will lower the rate by ¼ of 1%.                                     FICO Scores and Your Mortgage FICO stands for Fair Isaac & Company, and credit scores are reported by each of the three major credit bureaus: TRW (Experian), Equifax, and Trans-Union. The score does not come up exactly the same on each bureau because each bureau places a slightly different emphasis on different items. Scores range from 365 to 840.                                Some of the things that affect your FICO scores:   Delinquencies Too many accounts opened within the last twelve months Short credit history Balances on revolving credit are near the maximum limits Public records, such as tax liens, judgments, or bankruptcies No recent credit card balances Too many recent credit inquiries Too few revolving accounts Too many revolving accounts                                           Credit History is Important Credit scores are important if you want to get the best interest rate available. Protect your FICO score. Do not open new revolving accounts needlessly. Do not fill out credit applications needlessly. Do not keep your credit cards nearly maxed out. . < Back ©Copyright 2008 - www.RKMConsulting.com & www.Coladner.com