Los Angeles Mortgage Information

How can I ensure a high credit score and is it possible to raise my score?

Your credit score and past credit history play a very important role in getting approved for a mortgage. A stronger credit score ensures a stronger credit history, which makes it more likely that lenders would approve your application for a loan. In addition, lenders offer better rates to those with higher credit scores.

Your credit score and past credit history is maintained in your credit report that also includes detailed information of all your past debts, finances and how well you have repaid your debts. Looking at your credit report, a lender can make a decision on your loan application. Call 1-800-814-1103 to speak with a mortgage specialist, who can obtain your credit report, and review it in detail with you. You may also fill out this form, and a mortgage specialist will call you to review your credit with you.

Here are some tips that will help you in maintaining a good credit rating.

Tips to Having a High Credit Score:

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• Pay your bills on time. Make sure that you do not miss any deadlines. If you have missed payments earlier, avoid it in future.
• Get your credit report a few months before you apply for a mortgage loan and review your credit score. This will also help you correct any errors in the report
• Shop for a mortgage within a 2 or 3-week period. Do not prolong this period. If your credit is pulled often, in a small time period, this is not so bad. But if you continually get your credit report pulled month after month, this will lower your score.
• Maintain small balances on credit cards and other loans. The closer you are to the limit on your cards, the more your credit will be hurt. Use your credit cards responsibly.
• If there are any blemishes on the report - attempt to get them removed
  

Which Mortgage Should I Choose? Key Questions to Ask Yourself and Lenders When Shopping for a Mortgage!

Traditional Fixed Rate Mortgage? Graduated-Payment Mortgage? Adjustable Rate Mortgage? FHA Mortgage? Two-Step Mortgage?

You are wondering which kind of mortgage is best. The answer: There is no one correct answer. Deciding which type of mortgage will best fulfill your needs can be difficult. There are so many types of loans and different term lengths. Your choice is extremely important and can take some time and effort to research. While often neglected by homebuyers, a little research before choosing your mortgage can save you thousands of dollars in the long run.

There are several elements of a loan that should be analyzed. While one of these elements may suggest one type of loan, another may call for a different type. You must weigh each ingredient separately and collectively. You will find that your answers to the questions below will ultimately determine the type of mortgage that best fits your needs.

How long do you plan to stay in this home?
Five years? Ten years? Thirty years? The length of time you will be in the home will certainly play a part in determining which loan to apply for. If you only plan to be in the home for 5–7 years or less, you should seriously consider an adjustable rate loan. If you intend on staying 20–30 years, a fixed rate mortgage may be right for you.

How much risk are you willing to accept?
If you are the type of buyer that needs to know exactly what you will be paying each month for the term of the mortgage, a fixed rate mortgage will fulfill this need. The fixed rate loan, however, will also net a higher interest rate. If you are willing to take some risk of fluctuations in the interest rate, you may be able to receive a lower interest rate.

What are your income expectations?
Plan for the future. Do you anticipate a gradual or dramatic increase in your income in the next few years? If you expect a big increase, a graduated payment mortgage may be best for you.

How much cash do you have available for upfront costs?
If you have the resources, you may want to make a larger down payment to lower your monthly payment. By keeping a higher monthly payment however, you might be able to shorten the term of the loan to a 15-year loan in order to pay it off quicker.

Keep in mind that you’ll have closing costs and fees to pay in addition to your down payment. If you don’t have much cash saved for your upfront costs, don’t despair. You may be need to accept a higher monthly payment or even lower your monthly obligation by choosing an adjustable rate mortgage.

In addition to choosing a type of loan, you must also consider which lender to use. Once again, several factors will influence your decision.

Annual Percentage Rate (APR)
This is most likely the best way to make an "apples-to-apples" comparison of lenders. The APR reflects the cost of credit on a yearly rate and includes any points and fees in addition to the interest rate.

Interest Rate
Find out the rate the lender will commit and how long the lender will guarantee it. Get any commitments in writing. As with any transaction, if it isn’t in writing it doesn’t exist.

Points and fees
These factors will vary greatly. Look out for hidden fees. Make sure the lenders disclose all fees; ask what they charge and what is included and what is not.

Loan Approval
Both approval and funding time should be considered. You don’t want to lose a prospective home because your lender takes weeks to fund your loan. A lender should be able to fund the loan within ten days.

Lender Reputation
Don’t rely on solely someone else’s recommendation. You, not your friend, must feel comfortable with your lender. If you do feel good about your lender and trust him , it will be much easier to trust his advice on what kind of mortgage will best suit your needs.

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We at Valerie Fitzgerald and Associates realize that you are in the information gathering stage of your purchase and we respect your privacy.  Should you have any questions, please feel free to email us at info@valeriefitzgerald.com or call us directly at 310-285-7515.  If you or anyone you know is looking to buy or sell a home, please note that we can provide detailed information and access to:

• Beverly Hills Real Estate
• Brentwood Real Estate
• Bel Air Real Estate
• Sunset Strip Real Estate
• Los Angeles Real Estate
• Santa Monica Real Estate
• Malibu Real Estate

You can count on the services of Valerie Fitzgerald and Associates to provide you with information you can trust.

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Fax: 310-271-9204

301 N. Canon Drive,
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Beverly Hills CA
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