Special offer

When Applying for Your Mortgage, It's "FATE and RATE"

Reblogger Gabe Sanders
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

When you're looking for a mortgage, luck (and your credit score) has a lot to do with the rate you end up getting:

 

 

 

When Applying for Your Mortgage,

It's "FATE and RATE"

 

Most of the loan applicants I work with come to me already aware of the fact that their credit scores and credit history contribute to and affect the interest rate quote they will receive upon application for a mortgage ...  

 
They also know that credit and credit scores can determine if they can be approved for financing when they buy or refinance a home.  
 
But beyond that, what they know of the actual contribution of the two to the "fate and rate" of their loan is typically pretty limited. 

That's understandable ... 
 
Admittedly, there are many moving parts and asterisks that must be considered by Lenders along the path to quoting rates and awarding loan approval.  
 
Here's just one sample of that being true ...
 
Some types of mortgage loans regard credit scores a bit more leniently than others.  At a minimum, most showcase some degree of sensitivity to "levels" of credit scores.
 
What I mean by this ...
 
Government-backed loans such as: 
 

are examples of those types of loans that are NOT as sensitive to credit score levels as say ..Conventional LoansAs always, there are pros and cons to consider prior to using any type of loan, and that remains true with these loans offering more credit leniency.  
 
Also ... 
 
The mortgage fees may be a bit higher for borrowers utilizing these loans.  Plus  Private Mortgage Insurance (in one form or another) will be required as well.  
 
The advantage of choosing one of these loans for your home financing is ...

Because these loans have guidelines that are a bit more "forgiving" and lenient, many hopeful home buyers find themselves able to buy and finance a home more easily (or sooner) than they previously thought possible.  With housing prices currently on the rise and saving money for a down payment remaining a challenge, these types of loans can also serve as a huge advantage for some home buyers ... especially first-time buyers.
 
 
But still, it's a fact:  Credit scores remain, to one extent or another, important in determining a borrower's "fate and rate" when they apply for a home loan. 
 
In other words, the interest rate received AND the ultimate success or failure of a mortgage approval rest upon (along with other criteria) credit scores.
 
Here are some examples of that being true: 
 
  • MOST Conventional Loan Programs have a "minimum" credit score.  You must have that minimum score (or better) to even have a chance to qualify for mortgage approval
  • MOST Conventional Loan Programs have "stepped" pricing tied to incremental differences in credit scores.  
       A.  That means anyone with a lower credit score pays a higher interest rate.  Conversely, those with a higher credit score earn a lower interest rate.  
       B.  Borrowers with a lower credit score can also choose to pay "points" (added costs) to achieve the same interest rate that a borrower with higher credit score might earn (without having to pay "points")
       C.  MOST Conventional Loan Programs have varying interest rates for every 20 points in credit score levels
 
  • MOST Lenders use the "middle" score of the 3 major Credit Bureau scores pulled for a Residential Mortgage Request.  (Each Credit Bureau provides one credit score
  • When placing LESS than a 20% down payment on a home, MOST Private Mortgage Insurance Companies charge borrowers differently ... and that charge is reliant on credit scores and credit score variances in categories of 20 point increments (in MOST cases)

Note that pesky word "MOST"?  

I refer you back to the moving parts and asterisks I spoke about above.  Exceptions to the rule do exist.  

There are many factors that enter into the interest rate earned and the monthly mortgage payments you'll make.  These factors are also the basis for many other things such as the Closing Costs you pay, the loan program you qualify for, which loan program will serve your needs best ... and yes, even if you receive mortgage approval.  
 
It's important to remember:
 
  1. These "factors" are personal to you and you alone  
  2. No comparisons of your loan, interest rate, etc. can or should be made between you and anyone else  
  3. Your personal factors, over time, can change or be changed  
 
And that's very positive news.  Why? 
 
If the "fate and rate" you received or thought you would qualify for in the past was not a positive one ... you can have faith that with time and improvements made you can positively change the "fate and rate" you receive in the future.  

The fastest way to learn or change those variables is to talk and work with an experienced and knowledgeable Loan Officer.  So if hoping to buy soon or in the future, reach out to me ...
 
 
 
* Are you hoping to buy or refinance a home or investment property in New Lenox, Will County, or elsewhere in the Chicagoland, IL/Wisconsin area? 

Contact Me! 
 
I'll put my 40+ years of mortgage experience and expertise to work answering your questions and fulfilling your financing needs.
I'm easily found at:

 
Gene Mundt
 
 
Mortgage Originator - NMLS #217987 - IL Lic. #031.0006220 - WI Licensed
 
 
American Portfolio Mortgage Corp.
 
 
NMLS #175656
 
 
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
 
 

  

 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   

   Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  

    

 

Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

Email Me .. to be added to my Mortgage & Real Estate Newsletter

Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gabe, I missed this great post from our friend Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi  so glad you rebloged it, Endre

Feb 22, 2019 11:56 PM
James Dray
Fathom Realty - Bentonville, AR

Morning Gabe.

I don't get out much beyond those who I follow.  Recently I've deleted from my follow list a number of them.  I think it's high time I started following others.  Gene may be one of them.  Thanks for the re-blog

Feb 23, 2019 01:44 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gabe, great choice for a reblog, and one's credit score is so important.

Feb 23, 2019 05:47 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Great reblog, Gabe.... this is a message that can't be repeated too often!

Feb 23, 2019 06:20 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Gabe - Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi always provides good information for those seeking a mortgage.

Feb 23, 2019 08:28 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Thanks Gabe for this Reblog from Gene, I missed it first time around and glad I got to read it now.

 

Feb 23, 2019 09:00 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much, Gabe, for sharing this excellent reblog selection.

Feb 23, 2019 12:33 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gabe this is another excellent blog by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi.  Good information to pass on to your readers.

Feb 23, 2019 02:18 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

We can always rely on this information from a very valued source !

Feb 23, 2019 04:44 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

Gabe Sanders, thanks for rebloggoing this.  Lots of good insights, especially for first time borrowers. 

Feb 26, 2019 06:01 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thank you for stopping by and taking the time to read my re-blog.

Mar 08, 2019 06:48 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thanks for your comments. It’s always good to hear from you.

Mar 08, 2019 06:48 AM