Homebuying questions?

Question

Maybe you can clear up a myth of homebuying for me. Is it ture you should bank with the bank you choose to get a loan from? If so what type of habits should you develop in order to make you look good on paper? Examples, do dirct bill pay so your all pymts will be on time, send any money you recieve through checking or savings? I am curious as to wether this will help mein the home buying process as a single parent and since I have had bad credit and trying to re-establish some. I just looked at a well to do subdivison morgatge company requirements in my area and they asked about cancelled checks from past rent, utilities as a source of credit. Has anyone experienced having these things evaluated? I know maybe it can help, what do you think? Any other tips?

Answer 1

Your questions are a little hard to understand, but I will try:

1) There is no reason to bank with the same company you have the mortgage with. In fact, even if you do, the chances are high that the bank will sell your mortgage to someone else and they won't be in the same place.

2) Direct bill pay in itself won't improve your credit. However, if you tend to make mistakes and pay bills late, direct pay may be a great tool to help organize you and pay on time. Paying on time improves your credit.

3) Paying a few bills on time won't help your credit quickly. It will take time. You should pay any accounts you are delinquent on. You can also attempt to repair your credit by pulling your credit reports at www.annualcreditreport.com and protesting negative marks via certified mail. If they can't substantiate the negative mark in a certain amount of time, they have to remove it (even if it's true). Basically, you are hoping they will be too slow.

4) If your mortgage broker asks for documentation, give it to them. They use this stuff in their underwriting procedures. If you don't have your check stub or bill that they are asking for, call the vendor and ask for copies. They ask for all kinds of stuff on a mortgage, and not all mortgage companies ask for the same stuff.

-->Adam

Answer 2

Sounds like he is trying to qualify you for the loan. There are many different types of home loans.
It is not necessary to have account with their bank. Whoever you bank with you need a checking account so you have a good paper trail of payments for utilities, etc.. The same is true (you have a record ) of bill payment with on line banking as well.
The credit bureaus will be able to see how timely you make all payments . A savings account also shows up on your report but it does not show how much or how little if it is from a bank other than the one you are borrowing from.
Just look good on credit report and have some accounts that have high credit limits that you do not use, and pay ALWAYS on time determines your credit score.

Always call and shop around for the bank with the best interest rate on a long term mortgage and try not to pay any points on the mortgage.
Get mortgage for longest number of years, (30 years) fixed interest rate, and lowest interest rate available. Be sure you can make principle payments anytime to lower your outstanding balance and can payoff early if you wish.

It does not matter where your checking account is or your savings.

Answer 3

Well, it is not a requirement to seek financing through the bank where you have your checking and savings accounts, but it can sometimes help. If you are on the "bubble" as far as a credit decision is concerned, the bank might rule in your favor if you have had a long, established relationship with them. Another benefit is if your bank and mortgage lender are one in the same, you might get a special break on your interest rate if you allow them to take your mortgage payment out of your bank account automatically.

It doesn't really matter how you pay your bills (US mail, online, etc.) the important thing is that you pay them on time. As long as that is taken care of, you should be fine in that dept.

As far as the lender checking your utilities, he's just trying to qualify or pre-approve you through non-traditional credit. Basically, he wants to see a paper trail that your rent, lights, gas, car insurance, phone, cable, etc. are all being paid on time. Lenders sometimes check the payment history of these in lieu of basing their decision solely on traditional credit (what's found on your credit report). And yes, this does help people who have little to no credit history. The lenders will want to see that these bills are paid on time for at least a year.

For other tips, I guess I'd suggest that you clean up all negative issues on your credit - any collections, charge-offs, judegments, liens, etc. Make sure they are all settled. Save up as much money as you can for a down payment. When you loan shop, don't buy into the first loan you're offered. Shop around and compare a lot of different factors: interest rate, APR, loan type, loan terms, escrow, closing costs, PMI and pre-payment penalties. As long as you rate shop within a 14 day period, it will only count as one inquiry on your credit report and will not totally destroy your scores.
If it's offered in your area, try to take a first-time home buyers course. You'll learn a lot of information about the process.
I wish you well!

Answer 4

doubt any one cares about that. unless you live in a town of maybe 200 people and have to know the bank mgr to get a loan. otherwise, no never sibjected to that but i dont have bad credit either. more likely you cant get any loan at this point. check with a mortgage broker - you can ask this stuff for free.

Answer 5

technically specific. yet you may desire to remember this is in case you get one hundred ten,000 for the abode. then you definately could desire to pay realtors expenditures, your loan on that abode with pastime is extra then probably extra then eighty 4,000 given which you merely paid it for 3 years. then there are different issues to contemplate like if on abode inspection the shopper want you to restoration something that is incorrect, plus professional score the valuables taxes, etc. so in the tip you may desire to finally finally end up having no longer something on that 25,000.