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TWO STEP QUICK APPLICATION FORM
First Rate Lending knows what it takes to be a successful lender. Since the start of our operation, our dedication to exceed your expectations and guarantee your satisfaction has made us what we are today.
From start to finish in the loan process, we provide no less than exceptional service to our most prized possessions: our customers.
As a leader in the mortgage industry, we aim to deliver excellence in every area. Based on client feedback, we constantly strive to improve our systems and technology to improve our efficiency and success ratio.
Because market conditions are constantly in flux, we keep our fingers on the pulse of mortgage backed securities to ensure that you get the best interest rate possible.
NEWS & ARCHIVES
¤ Understanding Credit Scoring & Credit Repair
¤ Time to transition your ARM into a fixed rate?
¤ Much to Gain by Pursuing Home Ownership?
¤ Optimizing Credit Scores and Interest Rates
¤ Is Refinancing Your Mortgage For You?
¤ Protecting your Credit During Divorce
¤ Option ARM
¤ Sensational Headlines
¤ Falling behind
¤ Home Sales On The Rise?
¤ Enhance Your Financial Freedom
¤ The reverse mortgage NEW
¤ Home improvement loans NEW
¤ Credit scores and interest rates NEW
¤ Making Your Mortgage Invincible NEW
¤ Why you should care? NEW
¤ The Sub-prime Default Crisis NEW
More on Credit Scores & Interest Rates:
The most frequently asked question I receive is, "how do I improve my credit score?".
It's a very simple equation. The higher your credit score, the better interest rate you will receive as a borrower. The reasoning behind the equation is equally simple - your interest rate not only reflects current market conditions but also your estimated ability to pay back the loan. To a lender, the latter is worth its weight in gold.
Components of a Credit Score
Generally speaking, your credit score is based upon the following criteria in order of importance:
These quantifiable aspects, once accumulated, typically result in a number between 350 and 850. The bottom line is the higher the number; the more likely you are to pay back the loan.
What a Credit Score Means
A borrower with an outstanding credit score will get what is called an A-paper loan. This borrower is rewarded with a lower interest rate because of their proven track record. Consumers with less-than-perfect credit receive loans labeled A-minus, B-paper, C-paper or D-paper.. On a monthly basis, this translates into more money out of a borrower's pocket. These loans may still be far better than doing nothing, so be sure to have your situation analyzed carefully. Improving Your Score
To begin, it's a good idea to consult with a qualified mortgage professional. An originator can provide examples of reasonable credit usage, discuss options for paying off existing debt, and advise you regarding whether limiting or expanding your credit is most beneficial. A mortgage consultant can also assist you with identifying negative items or potential errors on your credit report. It's important to deal with such issues as soon as possible. In addition, if you need credit counseling, a mortgage professional can help you to obtain it.
Here are some additional tips to keep in mind:
1. Pay your bills in a timely manner - Paying bills on time for one month can raise your credit score as much as 20 points.
2. Control the balances on your credit cards - Maxing out credit cards can lower your score as much as 70 points.
3. Don't open new lines of credit you don't need - New accounts lower your average account age which, in turn, may lower your score as much as 10 points.
4. No credit is bad credit - Having a few credit cards which you manage responsibly is a good thing. Having no credit cards will reflect negatively on your credit report.
5. Don't start closing accounts - Closed accounts still show up on credit reports. You should be sure to consult with your mortgage professional prior to closing any accounts in case it will negatively impact your overall score.
Once you have improved your credit score, a mortgage originator can re-examine your financial status and help you to determine whether obtaining a new loan or refinancing an existing one would be beneficial.
In the case of a refinance, a mortgage professional will first determine if your existing loan has a prepayment penalty. If it does, you can work with the originator to continue to improve your credit score until it expires. Once this occurs, your mortgage professional can help you obtain a new loan; so you can continue to refinance as your credit score increases. Refinancing may be a necessary step to resolving your credit issues. Once your credit is repaired, you can simply change your loan for a more permanent A-paper loan.
Loans and credit scores can work against each other, but a good mortgage professional can provide the proper guidance, ensuring a symbiotic relationship.
President First Rate Lending
|HOMEPAGE | FULL APPLICATION | LOAN-PROGRAMS | FINANCIAL CALCULATORS | CONTACT US|