What is the best bank or mortgage company for a loan?

Deal Score0

I do not have great credit history and want to see a mortgage if I am eligible, but I want to know who threw preferable to opt for a good shot, because my history is poor?

  1. Reply
    Living Beaverton
    February 14, 2011 at 8:19 am

    There is no one answer for your question, each lender has different guidelines for lending and one maybe able to get you the loan, but the rates maybe considerable higher.

    If you give your information to multiple people they can all shop around and find you the best deal and it won’t adversely affect your credit as long as you do it all at the same time with in about a 30 day period, the credit agencies will only see it as one pull. They know you aren’t really going to buy 10 homes and are just trying to find the best deal.

    If you can’t find a bank that is willing to lend you money and you have a good down payment, I suggest you consider doing owner financing or a land sales contract. (But, I would seek the help of a good CPA, to make sure that is the right decision for you first)

    Good luck and happy house hunting.

  2. Reply
    February 14, 2011 at 8:24 am

    Your best bet is to work with a mortgage broker. Most brokers have 30+ lenders they work with which means more options for you. For example, most lenders have gone to a 620 mid score requirement but I still have at least 2 that will do FHA loans down to the mid 500s.

  3. Reply
    February 14, 2011 at 9:23 am

    Most lenders/banks have the same mortgage products, your ability to get a mortgage loan will be hinged on your credit score and your ability to purchase a house.

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

    Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don’t get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some use to you, good luck

    “FIGHT ON”

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