Cash on Hand
The cash money you will need to have prior to the mortgage loan is given to you. This funds are needed for all the payments you will have on the process of the loan. Paying for the credit score, the loan origination fees , mortagage points, Appraisal Fees, Mortgage Insurance Application Fees and more..
This money is needed for all the down payments and closing costs. The percentage of this sum from the over all mortgage loan will have a great effect on the private mortgage insurance and on the mortgage interest quotes you will get from the bank or from the lender.
It is usually 20% cash on hand needed for getting a good mortgage rate deal. If you have less cash on hands, then you will be asked to get PMI – a private mortgage insurance, and the mortgage interest rate might be a little higher.
So What Can You Do To Improve Your Situation?
If you will do nothing.. don’t expect anything to happen. The best advice is to bump your credit score up! It will give you better leverage when facing the lenders, and better negotiation position when applying for any financial need.
Lets not forget you are probably paying $500-$1000 extra per year in higher interest rates, and credit payments.
If your score is below 700, you might want to clean it yourself – get this ‘Credit Repair University’ which will save you money and time.
Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..
You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket. Don’t be cheap when it comes to financial education..
Ignorance costs more.
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