Posted by Collette | Posted in Home Mortgages | Posted on 04-12-2009
With the Christmas Season upon us we are reminded that shopping to find the right gift takes time and effort. Shopping for a new home mortgage is no different. The first mistake many people make when beginning to search for a lender online or on the phone is to shop based on who has the lowest rate quotes. Reality is that the interest rate quotes you see online or quoted over the phone are for what is called the “Plain Vanilla” borrower. Meaning the ideal borrower tons of equity in their home, tons of assets & income, and a credit score over 740. Savy shoppers will first find a lender who can help them assess their personal credit profile. Credit profile consists of the entire financial picture. This involves reviewing a copy of your personal lender credit report. Then comparing your income, assets to your current monthly debt payments. Finally reviewing your current housing situation if you already own a home. If you go to the right lender this should cost you nothing if you need to back out. Then you can work with a lender to lock in the lowest rate possible given you current credit profile.
On Monday I’ll talk more about the difference between a lender’s credit report and free credit reports you can pull online.
Make it a great weekend,
Collette
