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This is one of the reasons we recommend that you do your "lender shopping" in a short time frame. In addition, the market changes from day to day, so taking weeks or months to find a lender doesn't make much sense.
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A Quality Credit Rating. Generally, "A Credit" is considered a FICO score of 620 or above. These are credit reports with very few or no late payments and particularly, no mortgage late payments which are an immediate red flag to lenders.
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Pay your bills in full and on time. Late payments and collections can have a serious impact on your score. With credit cards, always pay at least the minimum on time.
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The "personal information" section is self-explanatory: your name, address, employer, social security number, etc. Check this information carefully and make sure it's accurate.
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Each of the nationwide consumer credit reporting companies are required, by the Fair Credit Reporting Act, to provide you with a free copy of your credit report once every 12 months. In the past, you had to contact each company separately, but there's now central contact information for all three.
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Developed by Fair Isaac & Company, the credit score (often referred to as the FICO score) is a measure of your credit worthiness. The higher your credit score means the more credit worthy you are considered to be.
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There are a couple of different options available if you're closing on your new home before you sell your current home.
The first is a "bridge" or "swing" loan. This is a very short-term loan meant to cover the time between the closing on your new house and the closing on your old one. The interest rates on these are often high, but because it's a short-term loan, you won't pay much in interest.
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To determine your maximum mortgage amount, lenders use guidelines called debt-to-income ratios. This is simply the percentage of your monthly gross income (before taxes) that is used to pay your monthly debts. Because there are two calculations, there is a "front" ratio and a "back" ratio and they are generally written in the following format: 33/38.
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First, get a copy of the seller's mortgage papers. Assuming a seller's mortgage means you're taking over the existing payments instead of getting a new mortgage, so you need to make sure it's even legal in this case. Most lenders don't allow them anymore.
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There are definite benefits to buying a house together. The primary benefit is that you'll likely qualify for a larger mortgage together than you would separately. Joint ownership is a great way for two people to pool their resources and buy a house |
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