Financing in Highspire>Question Details

Me&3, Other/Just Looking in Highspire, PA

Mortgage Help!!

Asked by Me&3, Highspire, PA Wed Oct 12, 2011

I am trying to fix my credit score using a program through Wells Fargo. In March when I started my scores were 543 with Experian & Equifax was 529,TransUnion was 502. Now this month it's 664,618, and 603.However I think I was reading something off of this site about Home Sales Lending, I think it's a part of Wells Faro, anyway was talking a guy from that company to ask about credit re-score and got my credits scores and they are Tu 666 (eww) Exp 692 Eq 607, so he gave totally different scores then what I had as you can see! But I have a question and it's what question should I be asking lenders about the mortgage? Is it just rates & their fees? Or is it something asking I just be asking? Also should I stick with one company or should I compare different ones? My reason for asking this is because I don't want to get so excited and just take the first one because I may be approve, I don't if that makes sense to you all. However any input would be highly grateful. Thanks!

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@NonRealtor - Someone can pull their own credit as many times as they want and it will not impact their scores, those types of inquires are called "soft" inquiries and do not have any effect. When credit is checked by a creditor that is when it can impact scores, as it's a "hard" inquiry. Those should be kept to a minimal but when shopping for a mortgage, all inquiries within a 30 day period are treated as 1 when it comes to your credit score... but a credit check on day 31 starts a new 30 day cycle.

@ Me@3 - I suggest explore at least 3 options, and preferably at least 1 mortgage broker, 1 mortgage loan officer who works for a bank, and also one that would work at a smaller direct mortgage lender (not a broker, and not a bank, just a mortgage lender who arranges loans and sells them afterwards - usually to the banks)... it wouldn't be a bad idea if you had the time to interview up to 6. That way you can get a feel for how each does business, because not every mortgage broker is the same as another mortgage broker, etc.

You'll want to ask what the pre-approval process entails and how long it takes. Will the underwriter who will be allowing your loan to close be the person reviewing your file as part of that process? Will it just be the loan officer reviewing your information? Will they even ask you for documentation?

You'll also want to ask what types of programs they offer, and once your documentation has been thoroughly examined you'd want to get what options would then apply to you, as well as ask what your loan officer thinks would be the best loan program for your situation. Ask about the other program that would be 2nd best (as if the first one didn't exist), so you can realize why the loan you are being suggested would be the best.

You'll want to ask what type of fees & costs you could expect to incur along the way (credit report, earnest money deposit, home inspection, appraisal fee, lender & 3rd party closing costs, etc.), how much those costs are estimated to be, and when they are expected to be paid (at the time the service is performed, at closing, etc). You'll want to ask how much of a down payment you'll need, and if you have to provide it or if a family member or relative can gift it to you. You'll want to know how much extra money you would need to have beyond those costs & down payment, which are called "reserves" (ie. 2 months of reserves = 2 times your proposed housing payment), some programs don't need them but a lot do. You should also consider yourself how much you want to have on hand after you close on the home, it will vary depending on your comfort level but personally I feel at least 6 times the proposed housing payment is a safe plan.

You'll also want to ask what type of loan terms can they offer you if you were to lock in your interest rate today (you should ask all lenders you are considering this question on the same day so you can have an exact comparison, as interest rates fluctuate day-to-date and even can be intraday).

You should also ask when & how they will be available - are you someone who likes to discuss things after the normal work hours on the phone? In person on a Saturday? Through email? Someone where or not where you live?

There are more variables to think of, some will have greater importance to you and others will not, however I truly believe that you will have a feeling of pure comfort inside of you when you have found the loan officer who will be the perfect fit. You will leave the conversation having a full understanding of the road ahead and what is expected of you, as well as you'll feel the loan officer has left no stone unturned when going over your situation, listening to and addressing your needs.
1 vote Thank Flag Link Wed Oct 12, 2011
Hi Me&3,
I've heard that if you pull your credit score often, it lowers your credit score. Wait another year to buy, prices are declining. Good Luck
0 votes Thank Flag Link Wed Oct 12, 2011
Jim,
I think you have misunderstood what I have wrote, what I am saying is- it's a credit program that I use through Wells Fargo called "enhanced credit" which tracks your progress & credits. However HomeSale Lending, LLC is a mortgage company that does something called a credit re-score or something like. I had contacted him for credit rescoring but then you told that his company was part of WF so that's why I allowed that happen (pulling my scores). No has help me work on my credit scores I have did that on my own. That's why I was asking could I & should I compare mortgage's before saying yes to one? And what questions should I be asking about the mortgage? Thanks
0 votes Thank Flag Link Wed Oct 12, 2011
I thought Wells discontinued their Home Buyers Club, maybe they just scaled it back. If you are using that program the underwriter that works with you is the one that approves the loan once the guidelines are met. If that is the program - you signed a form giving them an opportunity to make you the loan. Besides, that is the right thing to do if they have been helping you get ready.
0 votes Thank Flag Link Wed Oct 12, 2011
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