Retirement Freedom Now - Mortgage Information

Getting pre-qualified allows you to determine how much of a monthly mortgage payment you can afford, and how much of a loan you can manage. The process takes into consideration your income and debts, your employment and residence situations, your available funds for down payment and required reserves, and some other things. Pre-qualification is a relatively short process and generally requires a minimum amount of paperwork

Once you have been pre-qualified, you are given what is known as a Pre-Qualification Letter (your real estate agent might call it a "pre-qual"), which states that a bank or financial institution is working with you to find the best loan to meet your needs and are that you'll qualify for a specified loan amount.

When you find a property that meets your search criteria, by being pre-qualified, you know how much you are able to offer and more importantly, it lets the seller know you have the financing in place and have the clout to purchase their property right now!

Contact Amelia for additional information on becoming pre-qualified.

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FICO scores, which were developed by Fair Isaac & Company, Inc. are the most widely used credit scores and range between 350 (high risk) and 850 (low risk) and only consider information found within your credit profile. Your FICO scores don't consider income, savings down payment amount, or demographic factors such as race, gender, nationality or marital status.

Credit scoring was developed as a means by which financial entities determine a persons willingness to repay a debt/loan.
If you have incurred delinquencies in the past, exhibited derogatory payment habits, have present debt, a long credit history, various types of credit along with a number of inquiries about your credit, all are taken into account when calculating your credit score. This score looks at both positive and negative information in your credit report. If you have been late in making payments, this will lower your score. However, if you have establishing or reestablishing a good track record of making your payments on time, this will raise your score.

Your credit history is made up of different area, each given different percentage or weights. Your payment history comprises thirty-five percent of your FICO score. Next, your current level of debt comprises thirty percent. The time your open credit has been in use (ten year old accounts are good, six month old ones aren't as good) and types of credit available to you (installment loans such as student loans, car loans, etc. versus revolving and debit accounts like credit cards) each comprise fifteen percent. Finally, five percent is requesting new credit or credit scores requested.

Your credit report needs to show at least one account open for at least six months and at least one active account in the past six months in order for you to be able to get a credit score. This ensures that there is enough information in your report to generate an accurate score. If you do not meet the minimum criteria for getting a score, you may need to establish a credit history prior to applying for a mortgage.

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Mortgage terms. Mortgages are generally available at 15-, 20-, or 30-year terms. In general, the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.

Fixed or adjustable interest rates. A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low. An adjustable-rate mortgage is designed so that your loan’s interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually have a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years.

Balloon mortgages. These mortgages offer very low interest rates for a short period of time — often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.

Government-backed loans. These loans are sponsored by agencies such as the Federal Housing Administration or the Department of Veterans Affairs and offer special terms, including lower down payments or reduced interest rates to qualified buyers.

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Whether you are looking for real estate investments, short sales, international real estate, real estate in Mexico, real estate in Costa Rica, buying real estate in Panama, or buying real estate in Brazil, you need the expertise, knowledge, training and experience of a CIPS (Certified International Property Specialist) such as myself to assure you buy the perfect property and in the proper, legal manner.

View listings & international real estate information in another language by clicking the flag of the country/language you desire in the table below:

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