Before signing a mortgage, we must understand 100% the contractual conditions to avoid surprises in the future. Bellow, the mortgage specialists from ClearPath Lending teach us how to do it.
Understanding the conditions of a mortgage is the key to finding the financing that best suits our needs. The most complete way to compare the products that banks and private lenders offer us is through the mortgage FICO, a document that establishes the credit conditions that the bank would be willing to offer us according to our financial profile. The FICO is, therefore, the best ally of the consumer to be able to sign a good mortgage.
FICO scores are used in more than 90% of the credit decisions made in the U.S. Having a low FICO score is a deal-breaker with many lenders. There are many different types of credit scores. FICO is the most commonly used score in the mortgage industry.
FICO, the first step towards a good mortgage
A mortgage is a 100% negotiable product and the negotiation limit is set by the combination of our economic capacity and our financial knowledge. Before signing a mortgage, we must analyze the FICO and check if the conditions proposed by the bank are suitable for us.
If we do not know how to analyze a FIPER or if we want to be totally sure that we understand the conditions that are reflected in the document, we can request an analysis of the document in question. The Irvine, California mortgage lender ClearPath Lending has a valuation service, through which a finance expert analyzes your mortgage offer, from the interest rate, commissions and linkage to the final cost of the mortgage.
In the case of your FICO score, the company looks at your past and current credit usage and assigns a score that predicts how likely you are to pay your bills. Mortgage lenders use the FICO score, along with other details on your credit report, to assess how risky it is to loan you tens or hundreds of thousands of dollars, as well as what interest rate you should pay, explain from ClearPath Lending.
Once we know if the mortgage offered by the lender is good or can be further improved, we can go to sign the contract, with the peace of mind of knowing that we will not have negative surprises in the future.