Tag Archives: appraisers

What Does My Credit Score Even Mean?

What does my credit score even mean?

As we all know, credit can either help us turn our dreams into a reality or it can be the one road block that keeps getting in the way. What does my credit score even mean?

What is credit?

The credit scoring system was originally designed in the 1950’s to help lenders determine how well consumers could pay back borrowed money. While there have been many updates to how this system is used, the components of a credit score consist of these major factors:

  • Payment History – 35% Impact
  • Outstanding Credit Card Balances – 30% Impact
  • Credit History – 15% Impact
  • Inquiries or New Credit – 10% Impact
  • Types of Credit – 10% Impact

 

What can impact my credit score?

Paying off debts on time has the greatest positive impact on your credit score. Late payments, judgments and charge-offs all have a negative impact. Keeping lower balances on the open credit accounts you have is a sure way to keep that score going up! The longer you have positive credit history, the better. However, multiple credit inquiries in a short period of time, such as applying for multiple credit cards, can have a negative influence on your score. The type of credit you have is also a factor. Having a mix of credit, such as an auto loan and a credit card, is more positive than a combination of debt from multiple credit cards.

What if I don’t have any or enough credit?

There are simple ways to begin building credit history. Start establishing credit history by opening  a small line of credit with your bank or credit union and begin making minor purchases that can be easily paid off. Your bank may offer a secured credit card if this is your first time applying for credit. This type of card works like a debit card and will require deposited funds for purchases; just be sure your history will be reported to all three credit bureaus.

What if I have less than perfect credit when applying to purchase a home?

Knowing what is on your credit report is the first step. Obtaining a credit report will show which areas are helping your score and which areas need to be worked on. When applying for a mortgage, your loan officer will be able to see if there are any areas that need work to help you get on the right track for a future purchase.

Want to find out where you stand? Let’s get the conversation started.

https://alphamortgageapplication.com/

 

To keep up with all things mortgage, housing, and real estate, be sure to subscribe to our blog! Here at Alpha Mortgage, we’re proud to be North Carolina’s #1 mortgage company. Contact us today to make owning your dream home a reality.

Which Loan Type is Right for Me?

Searching for the right loan program

Cutting Through the Confusion

Getting lost in all the mortgage lingo? You are not alone. According to a study performed by the Mortgage Bankers Association of America, “many borrowers say they get too much information when they go through the home-lending process…” Working with an experienced mortgage lender will save you a world of frustration by cutting through all the confusion. Your Lender will present the relevant information to get you on your way to moving day!

Which Program is Right for Me?

When purchasing a new home, a little research can go a long way. Asking the right questions will help us identify the right program that meets your needs.

  • Are you a first-time homebuyer?
  • Are you active or retired military?
  • Where is your future home located?
  • Which government programs do you qualify for?\

Common Loan Programs

You may have heard of these common loan programs: Conventional, VA, FHA, USDA, ARM (Adjustable Rate Mortgage), Jumbo…but what do they mean?

Conventional

The conventional mortgage is the most commonly used loan program for borrowers with good credit and steady income and can be used for purchasing a primary residence, second home or rental property. Conventional loans do require a down payment that can be as low as 3% of the purchase price of the home. PMI, or private mortgage insurance, is required when the down payment on the home is less than 20%. After 20% equity has been built up, the loan becomes eligible to have PMI removed.

VA

As a thank you in advance for those who are currently active duty, retired military or eligible reservists, this loan program offers veterans 0% down payment! The VA loan is guaranteed by the Veterans Administration and is government insured. Rather than having a monthly mortgage insurance fee, this loan program has a VA funding fee that is calculated into the initial loan amount. For borrowers who are considered disabled, the VA funding fee is waived entirely.

From all of us here at Alpha Mortgage Corporation, thank you for your service!

FHA

Insured by the Federal Housing Administration, the FHA loan requires a down payment as low as 3.5% and comes with a maximum loan amount that is determined by the location of the property. The FHA loan is helpful to borrowers who may have a higher debt to income ratio and allows for less than perfect credit. The FHA loan program does require PMI, or private mortgage insurance.

USDA

The USDA loan is insured by the US Department of Agriculture and is offered if your potential property is located in a USDA acceptable rural area. One of the benefits of the USDA loan is that it offers 0% down payment. Check here for USDA eligibility and income limitations: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do;jsessionid=12MOUsHhXtG476sIGOnK5FRY#

JUMBO

The Jumbo loan is meant for loan amounts exceeding $453,100. In order to qualify for the Jumbo loan, borrowers must have a higher credit score.

 

To keep up with all things mortgage, housing, and real estate related, be sure to subscribe to our blog! Here at Alpha Mortgage, we’re proud to be North Carolina’s #1 mortgage company. Contact us today to make owning your dream home a reality.

 

USE A LOCAL HOME APPRAISER!

When you apply for a mortgage or refinancing, you will have to go through the process of getting your house, or the house you are wanting to purchase appraised.  An appraiser will visit the property and will evaluate the land, dwellings and all the included features.  This is called Field Work and their goal is to establish a market value.  This process generally can be done within a couple of days, but depending on the complexity of the order it can extend into weeks.

An appraiser will go onto a property and will evaluate the interior and exterior condition.  They will look at the quality of the construction and how many upgrades or modernizations there have been.  Then they will estimate the square footage by taking measurements of the exterior of the home and assess non-living areas such as covered porches, permanent sheds and garages.

Once the appraiser has all the information they need about the subject property, they will spend time looking at properties close by to further establish the market value of the home.  This includes looking at recent sales as well as foreclosures, assessing tax records, courthouse records and their own personal knowledge of the area.  This is one of the reasons Alpha Mortgage only uses local appraisers because we want our clients to have the most accurate and dependable source possible.  Once the field work is completed the appraiser will finish the report and then submit it to the loan officer.

 

Once our loan officer has the report they will set up an appointment with you to review the results in detail.  You are always welcome to have a copy of the report as well for your own records.  Once we have the information we can move forward with the mortgage process and get you one step closer to refinancing or owning a new home.  At Alpha Mortgage it is our goal to make the home buying process as simple and easy as possible and we want you educate you each step of the way.  Do not ever hesitate to give us a call when you have a question.  We’re here for you.

 

When you are ready to purchase a new home or you want to take advantage of the historically low rates and refinance, one of our loan officers is ready to work with you.  We have offices  in Wilmington 910-256-8999, Winston-Salem 336-760-3013, Fayetteville 910-484-7272, Asheville 828-552-0330, Jacksonville 910-347-7283, New Bern 252-634-3000, & Jacksonville 910-347-7283.  We look forward to hearing from you!