Not stop making payments during the refinance process. Missing a payment can drastically lower credit scores, which can potentially cause the new loan to be denied. Always pay all bills as they become due. If part of the loan proceeds is used to consolidate debts, any payments made since loan submission will be reflected in the final pay-off amounts.

also make sure you do your research on the loan program you are considering getting into. Some programs sound attractive because of their low start rate, but in the long term may not be what you are looking for. Do your homework so that you can make a smart and informed decision.

There are 5 factors that impact your credit score: 1) payment history 2) outstanding credit balances 3) credit history 4) type of credit 5) inquiries

When shopping for a mortgage be sure to ask the loan officer you are working with to explain to you how a particular product directly benefit’s you and meets your goals. A 30 year fixed rate mortgage may be a good pick for the home buyer who has found their dream home and plans to live in the home for a long period of time. On the other hand, a two year fixed mortgage which adjusts for 28 years is best suited to the home buyer who is just making their first small purchase, perhaps a condo. After two years the homeowner may have solid decisions to sell the property in order to move up to a larger home. In this situation the two year fixed tends to have a lower rate which means smaller payments while still having the benefit of a fixed rate while the person still lives in their home. While the 30 year fixed is the most common and popular product, do not forget to see if any mortgage product being offered to you meets your personal financial goals. If the loan officer can’t directly explain it to you, then you may need to change the loan product you’re looking at, or change your loan officer!

No more than seven inquires will be used to calculate the score. Multiple inquires within 14 days, will be counted as a single inquiry. This applies to auto inquiries and mortgage inquiries. Being late on your mortgage is no worse than being late on your credit card. A 60 day or more late is significantly more damaging than a 30-day late. In most cases an unpaid collection is just as bad as a paid collection.

Remember to look at the amount of dollars in interest that you will end up paying over the life of a loan. Sometimes the lowest payment isn’t the smartest decision in the long term.

A value (score) is assigned base on the following criteria, in the order of their weight in the scoring formula, payment history, outstanding balances in relation to credit limit’s, length of credit history, number of inquiries, and the type of accounts.

One other valuable do not to include is do not hesitate to contact with any questions or concerns. Our primary goal is to get you the loan you choose and assist you in integrating it into your short and long term financial and investment goals, your payment and equity objective, while assisting you in reducing your debt and maximizing your cash flow!

Credit scoring has been utilized by lenders for over 30 years. Credit scoring is a technology used by credit grantors to qualify the risk associated with extending credit to a given borrower. Risk is quantified by means of a score card which calculates a numeric value, or score, for a credit applicant a lender wants to evaluate. Score calculation is done based on information that has been determined to be indicative of future credit performance. There are many types of scoring methods currently utilized today including credit scoring, applicant scoring, behavioral scoring and several others. The type most relevant to the mortgage industry is credit scoring and among the most widely recognized is the fico score.

A good piece of mortgage advice is, once you apply for a mortgage , do not do anything that could adversely affect your chances of qualifying. Do not quit your job or get fired. Do not cut back on your hours at work. Do not tell anyone at your work about future intentions to leave your employer. Do not buy or lease a new car. Do not open, close, or even use any of your credit accounts. Do not pay any collections accounts unless your mortgage professional instructs you to. Do not buy furniture or anything else on credit, even if there are no payments for one year. Pay your current mortgage or rent and all credit cards and loans on time.