Home Mortgage

Mortgage loans are basically broken up into two categories, prime and sub-prime. If you are a prime borrower, you meet the following criteria:

A credit score of at least 670
No late mortgage payments in the past 2 years
No bankruptcy or credit counseling in the past 4 years
No charge offs or collections on your credit report
Available PITI (Principle, Interest, taxes and Insurance) reserves in a savings account for 3 months
A Debt-to-Income ratio of 45%

Home Mortgage Loan

You can still purchase a home with a low credit score. In fact, some lending companies specialize in poor credit home loans. Obviously, it is not ideal to have a low credit score. You might find your loan has a higher APR, since you would be considered a sub-prime borrower. Although with a score of at least 580, you can still obtain 100% financing. As with any financing, your credit history is a factor in purchasing a home. Things like bankruptcy, credit counseling, charge-offs, and collections can weaken your credit score. Obtain your report and clean up what you can.

An escrow account is the money held by the mortgage company to pay your yearly property taxes and insurance premiums. Your monthly payment includes a portion that is placed in this fund. This amount is adjusted on a regular basis as your taxes and insurance fluctuate.

You save money when I purchase my home with tax returns near thousands of dollars in interest to be saved in your home loan.

The first option is to find the lowest-rate with the fewest points. By shaving just a few points, you can save a ton of money. Another option is to shop for the shortest-term you can afford. Your payments will be larger, but interest will not accrue during the loan term, saving you even more.

Get a Home Mortgageť