If your like most people who shop for a mortgage the first question that you will normally ask is what is my interest rate. Within the last several years the mortgage industry has really evolved to what we in the business call risk based pricing. This means, your rate and terms are based on the risk involved with your transaction.
So how does it effect you? Recently, Fannie Mae and Freddie Mac, the two largest purchasers of home mortgage's implemented a sliding schedule of fees based on your credit score. If you and a another person are applying for a mortgage together, the credit score for loan purposes is the lower of the two borrowers. This unfortunately for many borrowers will result in an increase in the cost of borrowing.
If your down payment is less than 20% and your mortgage requires PMI insurance, your credit score can make a significant difference in the cost of mortgage insurance and whether or not you can qualify for a mortgage.
With the market and guidelines changing as fast as they are, now more than ever, you need to make sure you have an experienced lender representing you on your mortgage. For an honest mortgage quote with no strings attached, please contact me. We are here to help you thru the ever changing mortgage process.
