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1. How do I know how much house I can afford? Answer
2. What is the best way to raise my credit score? Answer
3. Is it worth it to refinance my mortgage if I can't get a rate better than TWO percent less than what I already have? Answer
4. How is an index and margin used in an ARM? Answer
5. How do I know which type of mortgage is best for me? Answer
6. What does my mortgage payment include? Answer
7. How much cash will I need to purchase a home? Answer
8. What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer

Q : How do I know how much house I can afford?
A : Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount that you can borrow will also depend upon your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first time buyers to purchase a home with a higher value. Give us a call, and we can help you determine exactly how much you can afford.
 
Q : What is the best way to raise my credit score?
A : The first place to start is by ordering a copy of your credit reports from all 3 bureaus. You can do this at www.annualcreditreport.com. Once you recieve your reports review and dispute any inaccurate information from your reports. This is a 30-60 day process so be patient. Once you get these items resolved at the bureau level, it should not show up in any reports moving forward.

Other suggestions include... Try the site www.optoutprescreen.com.    You must go to this site, enter into the 5-year opt-out option (this option only) and click to the next screen, enter all of the clients information precisely (discrepancies may make invalid).  After you have put all of  your  information in click submit and print the confirmation up and place in file.  Placing the confirmation in the file shows the date as to when you opted them out.

 Most of the  time the credit score would raise from 5-30 pts, allowing your to qualify for better credit ratings.  It only takes a minute to opt them out and 3-5 business days for the scores to be increased (tell them to wait five days to be safe).  It is important to note that , on occasion it does not effect the credit score. This may be attriuted to dicrepancies in entering your information.   

Popular theory is that by opting out of credit solicitations your are less apt to get more credit and put yourself in high debt.  Therefore the credit bureaus believe this to be advantageous and will give points for doing this.

You can also visit www.UCRscore.com. The company claims to create loan eligibility in as little as 60-90 days, but they do charge a fee. Lisa Chapman at Clean Credit, Inc. can also assist you in doing this for a fee. Her contact number is 770-576-1953.

These are just suggestions and are no guarantee to raise the score but hopefully these things will help us get a better loan program!

 
Q : Is it worth it to refinance my mortgage if I can't get a rate better than TWO percent less than what I already have?
A : Absolutely NOT! What you need to ask yourself is how much is the refinance going to cost me and when will I "break-even"? If you can lower your rate by half a percent and NOT PAY A DIME, then why wouldn't you?
 
Q : How is an index and margin used in an ARM?
A : An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
 
Q : How do I know which type of mortgage is best for me?
A : There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Creative Mortgage Resources, LLC can help you evaluate your choices and help you make the most appropriate decision.
 
Q : What does my mortgage payment include?
A : For most homeowners, the monthly mortgage payments include three separate parts:
  • Principal: Repayment on the amount borrowed
  • Interest: Payment to the lender for the amount borrowed
  • Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
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    Q : How much cash will I need to purchase a home?
    A : The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
  • Earnest Money: The deposit that is supplied when you make an offer on the house
  • Down Payment: A percentage of the cost of the home that is due at settlement
  • Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
  •  
    Q : What is the difference between a fixed-rate loan and an adjustable-rate loan?
    A : With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.