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Advertised Mortgage Rates: Don’t Always Believe What You See

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Rate Sharks: Misleading Advertised Mortgage Rates

Rate Sharks: Misleading Advertised Mortgage Rates

Advertised Mortgage Rate: Don’t Believe the Sharks

When you are looking to buy a property for the first time, you may be drawn in by the great advertised mortgage rates. Unfortunately, advertised mortgage rates are not always as they seem. There are many reasons the advertised mortgage rates may not be applicable to you, and in most cases there are very few who can take advantage of the great rates you see posted online.  Just read the fine print. I would like to tell you why and how you can get the best mortgage rate for your circumstances.

The first affecting factor is paying points. A point is a fee equal to 1% of the loan amount. If you are borrowing $100,000 a point is $1,000.  Most of these rates have you paying two points.  That is a huge cost!

The second is your credit score. A higher credit score generally means you will be more likely to receive a lower rate than someone with a lower one. A moderate credit score is about 695, but you would often need a score of above 740 to be eligible for the advertised mortgage rates.

Your credit score can differ from one credit bureau to another, which means it can be difficult to find out your own credit rating accurately. Although many lenders will use FICO, there are others that will use another credit scoring service such as Experian or TransUnion. They are all rated in different ways, for example Equifax have a score from 280 up to 850 but Experian’s goes from 360 to 840.

The term of your loan is also a contributory factor. If you take out a loan under 20 years you would pay a lower rate than you would if you were to spread repayments over 30 years.

We can help you to get the best rates possible for your circumstances.  As brokers we can choose from many lenders based on what you qualify for and have the tools to find out in real time. Many of the offers are time sensitive so it is important to have someone professional on your side who can keep you abreast of the changes.

We choose not to post any advertised mortgage rates as they just don’t make sense.  We take a personal approach and don’t bait and switch.

When you feel the time is right to take out a mortgage on your future home or investment property give us a call.

 

Buying a house? Why the mortgage rates online are deceptive.

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Mortgage Rates Online are Deceptive

Mortgage Rates Online are Deceptive

Buying a house? Why the mortgage rates online are deceptive.

For a few years now there have been many warnings (consumer reports) that warn the public about those companies who advertise mortgage rates online or in the newspapers and on billboards. They promise sensational mortgage rates. As wonderful as those rates are, they are deceptive to the majority of the public seeking home ownership.

The truth is that the process of in which you obtain a mortgage rate isn’t a cookie cutter process. Not for anyone.These advertisements give the false impression of the actual cost of home loans, and that sits on a fine line of violating federal law.

We do what is right, and avoid quoting a rate until we are sure you qualify for it. When we do quote it, you get the best rate in the market that you qualify for.

The Truth About Rates

Mortgage rates fluctuate. Many of these advertising low one percent rates fail to tell those seeking them that they do not stay at that rate. They go up after a period of time, and they go up substantially.

Every person does not qualify for these rates like these ads advertise. Each rate is based on the Consumer profile. This includes your credit score, debt ratio, and occupancy, the type of property, such as a single family home, a condo, and townhome. Also, the type of loan you are seeking. All of these greatly affect the rate you may receive.

Having a high credit score is great, but it does not necessarily guarantee the lowest rate either. If you have a considerable amount of debt, it brings the rate up. These ads and quick quote mortgage rates online tend to target the weaker scoring, low income, fixed income and minorities out there. There is a term for this. It’s called predatory lending.

What to watch out for?

Lenders will often contact you and try to rush you into making hasty decisions. Sell you a deal that may stretch you too thin with the promise of refinancing later when it may not be possible to do. Or they end up flipping you. Have repeated refinancing done that can actually suck the equity out of your home.

You could actually end up paying more than originally planned. Another thing they tend to do is leave out costs such as property taxes and insurance payments, doing this will make your payments seem lower. You do have to pay these costs regardless. So be sure to ask about this.

Mortgage rates online advertise the rates that a person with the best credit score and consumer profile might receive. Promising that everyone can get this kind of deal when in fact, they can’t. This is very much so, deceptive. So be smart and watch out for them.

Fixing Your Credit to Buy a Home

Fixing Your Credit to Buy a Home

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Fixing Your Credit to Buy a Home

Fixing Your Credit to Buy a Home Starts with Responsible Use of New Credit

Tips for Fixing Your Credit to Buy a Home

Your credit score is important in our world. It is a record and or proof that you are a responsible person and can pay your bills on time. The world doesn’t “take your word for it” when it comes to determining your ability to be responsible. Especially when it comes to large amounts of money that is in question. This is completely understandable. However, we are human and sometimes we stumble. That’s life. Maybe you lost your job at one point and were late on your car payment here and there. It happens. And this too is understandable. But, you have wanted to buy a home – the big dream most of us wish to fulfill. Came to find out though, your credit score is a bit low. Ok, so now what? How do you go about fixing your credit to buy a home? There are several things you can do. Here are some tips to fixing your credit.

Tip #1: Get and review your credit report.

You really should get your credit report from time to time. So you can review what it actually on it. This gives you an idea of what your history looks like. Plus to make sure your report reflects your history. Sadly, in some cases a low or bad score is the result of mistakes and or an indication of identity theft. If either of these things are noticed in your report, you should get a hold of your creditors and make a formal inquiry. By law they need to resolve the dispute. Especially if it is proved that there is a mistake after all. They have to correct and remove it from your report. Make sure that anything that gets changed or adjusted in your report is put into writing. It can be your proof and or defense against any problems.

Tip #2: Seek out a debt professional or counselor.

It can be tough managing your debt on your own. Find a trustworthy debt or financial counselor. You really need to get a pin point on what you owe and find ways to pay those debts off. They can help you in getting in touch with your creditors to go over your debt and make a better plan for you pay your bills. This can help you in so many ways. Perhaps you can go with debt consolidation to help making managing your debt easier. It’s easier to put your debt into one payment instead of keeping up with several different accounts. The bottom line here is to start paying off your debt. It will one improve your score and two teach you money management.

Tip #3: Organize your bills and implement a schedule.

The best thing you can do for yourself is make time to pay your bills. Know when they are due and mark them on a calendar or have some kind of reminder for yourself. The point of the credit system is to show you are responsible. Be responsible. Pay your bills ON TIME every time. Get current on your bills and stay current. This is the most solid tip to really improve your score. It will bump your score up to fixing your credit to buy a home. Continuing to do this will get that score high and you will never have to worry again.

Tip #4: Credit cards.

Credit cards are good to have to help bump up your credit score, BUT only when you know how to use them. Try not to use them too much. Much of the debt people are in is due to credit cards. They are a helpful tool in emergencies and things of that matter. However, most people abuse them. They tend to spend beyond their actual means. The best option in curbing your credit card debt is to get rid of excessive amounts of cards. Credit cards are not free money; you do have to pay them back. Canceling a credit card does not remove it from your credit report. Keep the card that you have had the longest.

So this is it?

Seems so simple right? Well, it really is this simple. All you have to is treat your credit how you should have treated it in the beginning. Follow these tips and keep following them until, well, forever. All you have to do is be patient. Fixing your credit to buy a home needs to be done right. There is risk when you try those quick fix companies out there. They can actually do more harm than good sometimes.