Mortgage California Blog

Mortgage News Roundup

July 11th, 2013

Real estate offer. BusinessmanMortgage News Roundup

Today we’re going to look at four steps for a speedier close, what might happen to interest rates if you wait until 2014 to refinance, and three credit repair myths.

Four Steps for A Speedier Close

The faster you close, the sooner you’ll be in your new home and can start unpacking and getting ready for school to start and, believe it or not, the holidays.  So what can you do to help for a swifter process?

  1. Know What Your Closing Costs Will Be and What Form of Payment Your Lender Wants
  2. Find an Experienced Broker Who Can Push the Process Along Quickly
  3. Include Any Seller Concessions or Repairs In the Contract
  4. Set Up a Home Appraisal As Soon As You Start The Mortgage Process

Three Credit Repair Myths

This article was originally written to target new college graduates. The advice is useful for anyone who thinks that there are quick fixes for credit scores.

  • Myth 1: Credit reports are always accurate and closely monitored. Never assume that your credit report is correct. A recent study by the FTC notes that one in five reports have errors, and that number could actually be higher.
  • Myth 2: Reporting an inaccuracy takes care of the issue. You must be diligent in following up a dispute every 30-60 days until it is resolved.
  • Myth 3: Repair will be timely. They’re quick to report you’re two days late with a payment but slow to fix any errors.

Waiting to Refi Until 2014

No one really knows which way the rates will be going. But if you’re thinking of waiting, here’s three really good reasons to contact a professional loan officer and review your options sooner rather than later.

  1. You’ll face higher standards to qualify for a loan. The debt-to-income ratio is the amount of your total monthly debt as a percentage of your total gross monthly income. Your debt includes things like credit card bills, car loan payments, and the payment on the mortgage you want to get. This number generally can’t be higher than 40 percent, says Jim Duffy, a mortgage banker with Cole Taylor Mortgage in Atlanta, Georgia.So, the higher the mortgage interest rate, the higher your monthly payment  which means you need less debt or it may be more difficult to qualify for the lowest rates that are available.
  2. You might have to pay higher fees and costs to get a lower rate. If interest rates go up, points go up as well.
  3. You’ll pay more for your mortgage over the life of the loan. If the rates go up, you’ll be paying more for interest which increases the true cost of the loan over the term.

If you have any questions about loans or refinancing, contact a reputable mortgage broker who will work with you to find the best options for your income, debt, credit score, and timeline.

Mortgage California

Contact Us

Top Places to Work