Securing a Mortgage Loan? Plan Your Strategy.

Mortgage rates this week are quoted as low as 4.25% fixed on a 30-year primary residence mortgage. These low rates may even drop further before they begin to rise again; the real surprise may be the difficulty of even well qualified buyers in securing these low rates.

I want to review the important steps to be followed in applying for and obtaining the best rates offered. The loan process begins with an individual’s credit report and the FICO credit score.

The FICO score is the 3 digit number that is used in the majority of mortgage lending decisions. I recommend buyers order their score on the web for a nominal charge at least 6 months in advance so that there is time to challenge any errors prior to making an application for a loan. Never confuse being “pre-qualified” with being “pre-approved” for a mortgage loan. The first term is almost meaningless while the second is a complete process and actually involves applying for a loan. read more »