This topic contains 2 replies, has 3 voices, and was last updated by Anonymous 8 years, 3 months ago.
- May 5, 2011 at 8:26 am #203741
the range of 661-669? Professionals please answer. Any website links with more information would be appreciated.
- May 10, 2011 at 1:36 am #269861
It will depend upon the lender and the type of loan (conventional, VA, FHA, etc.)
Your credit score is not bad for a home loan. ALWAYS shop loans. Do not waste your time doing this on the internet; you will have so many hits against your credit report that it can actually knock your score down 100 points or more!
Contact several lenders in your area, by telephone or in person, and ask to speak to a loan officer. Tell the loan officer the details of your credit score, anything negative on your credit report, what type of loan you are seeking, and ask what the current rate is for that day. Interest rates fluctuate daily. Ask them if, based on the information you’ve given them, they would be likely to approve you for a home loan. If they demand to run your credit report, tell them you are currently only shopping rates and you will contact them again when you are ready to have your credit report ran.
If several lenders run your report at the same time (NOT lenders over the internet, remember!), then your score will not drop so much as it will be obvious that you are looking to obtain a mortgage loan and you are shopping loans.
Ask each loan officer what the policy of their Company is for “locking in a rate.” If you don’t know what that term means, ask the first lender; they can better explain it. In short, most lenders offer a certain period of time once you have been approved where you can “lock in” a good interest rate. It’s a bit like gambling. Do you, for example, take today’s interest rate ~ let’s say it’s 5.75% ~ and lock that rate in or do you wait for a lower rate? It is *possible* for the rates to go down, but it is also possible for them to go up. Your loan officer should be able to best guide you on what they believe the rates will do over the next day or so.
You will also want to know how long the locked in rate is good for: is it good for a week? 10 days? 15 days? This tells you how much time you have to find the property you want, have a Contract written by a real estate professional, and make an offer.
Once you have found your lender, obtain a pre-approval letter. You want a letter to show to your Real Estate Agent that you are pre-APPROVED; **NOT** just pre-QUALIFIED. Being pre-approved is almost like having cash in hand and this makes you a more attractive purchaser to someone who is selling. Then look for the property that is perfect for you.
- May 17, 2011 at 5:45 am #428713
Treating your home like an ATM is one of the problems that has created the current mess we are in. The danger in a refi cashout is that you are borrowing against the equity in your home using the appraised value of an asset in a sinking market. If the value of your home falls, you will be unable to sell your home for the value of your mortgage.
Why are you looking to take cash out? If you are going to use the cash to pay your bills, you are in even more trouble. That means you aren’t living within your means. Remodeling the house is a better use.
That said, the costs are different for each kind of loan. Use this to plug in the numbers to see how much they really will cost:
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