Click HERE for a link to good mortgage calculators.
Banks have mortgage loans where one size fits all. However, financial positions are very unique to each individual. Mortgage Brokers subscribe to a number of Wholesale Lenders so we can shop each lender to find a loan that fits your financial needs and goals.
As of April 2021, Multiline Mortgage Services is open for business in Iowa! This is exciting news due to all the friends and family we have in Iowa. You can become a member of our family too! Give us a call.
FICO scores are from 350 to 850. Generally, a 580 score will qualify you for a government loan (FHA, VA, USDA). However, keep in mind that the lower the score, the higher the risk is to the lender so the higher the cost of the loan. Scores from 680 to 750 are the sweet spot for all loan types and will get you very competitive interest rates. The difference from using a Conventional loan and a FHA loan when the credit score is good will be the amount of down payment. FHA requires 3.5%. Conventional loans have lenders that offer up to 3% and in some cases 1% down payments. The interest rate will be higher with the Conventional loan, HOWEVER, the mortgage insurance will be less. A good mortgage broker can map out which loan program will save you the most money.
Five things that affect your score:
1. On time payments. This is huge. Make at least the minimum payment on time every month.
2. Keep purchases to 30% of your available credit. This shows that you are not over extended and are a more desirable credit risk.
3. Length of credit history. How long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average age of all your accounts. For loan qualification, you'll need at least two trade lines. Call Multiline Mortgage for more information.
4. Credit mix - retail accounts and installment loans.
5. New Credit. If you are going to apply for a mortgage loan - DO NOT APPLY FOR ANY NEW CREDIT. Further discussion later!
When purchasing a home or refinancing a mortgage, there are both retail and wholesale lending options. The difference is wholesale mortgage lenders often partner with mortgage brokers, who work with you to find the right loan — sometimes at a discounted rate through the wholesale lender — and prepare your loan application.
A good Mortgage Broker will take the time to talk to you, get to know your wants and desires, answer every question, teach and guide you through the home buying process. It can be complicated and most people will purchase a home three or four times in a lifetime. We do this every day, several times a day.
BROKERS ARE BETTER!