The Best Mortgage Rates

Most consumers planning to obtain a home loan are looking around to find the best interest rate possible for their situation. This is an important aspect to financing because a small fluctuation in your mortgage rate can mean tens of thousands of dollars difference over the life of your loan.

Here are some important tips to use so you can minimize your mortgage interest rate and maximize the use of your money:

Raise your credit score:

Lenders will look at your credit score to determine whether they will continue looking at your mortgage application or reject it immediately. The best mortgage rates are generally obtained by consumers with a FICO credit score of 740 and up.

Achieving a 740+ credit score requires attention to the factors that make up your credit score, and how much impact they have: payment history (35%), credit utilization ratio (30%), length of account history (15%), recent credit inquiries (10%), and the types of credit you use (10%).

Make your payments on time and keep your balances as low as possible, while still using at least 1% of your credit limit. Using a small portion of your credit limit keeps your credit cards active in the FICO formula and maximizes the impact of the credit utilization portion of your FICO score.

Improve your debt-to-income ratio:

First, consider your “front-end” debt ratio, this is the amount of your pre-tax monthly income that goes toward your mortgage payment, this should not exceed 28%. Develop a detailed budget before applying for a loan so you understand what you can afford on a monthly basis.

Second, your “back-end” debt ratio, or the portion of your monthly income that goes toward all forms of debt pay off including; mortgage, student loans, car loans, etc. should not exceed 36%.

To appear as a lower-risk borrower, take care of your “back-end” ratio to improve your debt-to-income ratio, while also improving your credit utilization.

Consider short-term fixed-rate mortgage:

You have a good chance of getting the best mortgage rate possible by choosing a 15 year fixed-rate mortgage over a 30 year fixed-rate mortgage. This option can improve your interest rate by as much as 0.8% compared to a 30 year loan.

However one of the risks of utilizing a 15 year mortgage may outweigh the reward for many buyers. Having a much higher monthly payment will put strains on your budget and may cause late payments. Choosing a 30 year loan and paying it off sooner won’t give you a lower interest rate, but it will allow you to pay your debt more according to your own terms, avoiding potentially being strapped for cash when you run into an unforeseen hardship.

Larger down payment:

Lenders can give you lower mortgage rates for the life of the loan if they can get more money upfront. This is called paying for points. A point is 1% of the borrowed amount, the more points you can buy, the lower your interest rate will be. The longer you plan to hold the loan, the more it makes sense to pay for the points that will save you money.

No matter what course of action you take to lower your mortgage interest rates, utilizing a combination of all these methods will surely provide the best results. Get creative in your efforts and remember the end result – saving money!

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

7 Ways Credit Helps You

By now, you are well aware that credit plays a significant role in your financial success. But are you aware of how widespread the influence of your credit is?

Most consumers know that credit scores are important, but usually don’t know how often their credit makes an impact on their life. Credit scores mostly come into play when applying for some form of new lending, which is why it is very important to check your credit reports before applying for a loan or credit card. There are plenty of occasions when a good credit score will help you save money or reach your personal and financial goals, which is why you should regularly check your reports.

Paying by credit card is easy and comfortable

Here are a few ways your credit can help you:

  1. Apartment Hunting:

Rent payments generally are not reported to the credit bureaus, but having a strong credit profile shows your ability and willingness to pay your bills in a timely manner and can help you get into your apartment. In a competitive rental market, which currently exists, a better credit score will make your search quicker and easier.

  1. Setting Up Utilities:

If your utility provider notices that your credit profile has signs of late payments, you may be required to put down a deposit, or a higher than normal deposit when you sign up. These deposits are usually refunded or credited back to your account, but nonetheless, it is better to not have to put down a deposit in the first place.

  1. Car Shopping:

Unless you’re planning to pay cash, you will need an auto loan. The better your credit score is, the lower your interest rates will be. Lower interest rates can also be obtained with a larger down payment, but a higher credit score will be a benefit in any scenario.

  1. Insuring Your New Car:

Insurance underwriters can use your credit score while determining your auto insurance premium, and in some states your credit score will have a significant impact on what you pay. According to industry experts, a credit score can be a better predictor than your driving record.

  1. Buying a home:

Mortgages are huge loans spread over many years, so a few credit score points can translate into tens of thousands of dollars of savings. If buying a home is not on your immediate radar, you should still be monitoring your credit and trying to improve your profile, so when you’re ready to buy, your credit score gets you the most value for your money.

  1. Emergencies:

If you don’t have the savings to cover an emergency, you will likely need some sort of financing. Great credit will give you access to a variety of lending options from low-interest credit cards to personal loans. A stressful situation will only gets worse when you start missing payments because you can’t get a loan.

  1. Repaying Student Loans:

Depending on your current student loan rates, you could stand to save a lot of money by exploring refinancing options. A lower interest rate requires a good credit score, the longer it takes to improve your credit, the more money you will lose in interest.

Your credit profile will determine a variety of aspects of your life, adding up to have a very significant impact on your financial life in the long run. Make sure your profile will help you.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Pay Off Mortgage or Invest?

Some homeowners just do not like having a mortgage and will try to pay it off as quickly as possible. Doing this could be very beneficial for some homeowners, but for some, it could be a mistake. For one thing, pouring money into your mortgage can present you with a liquidity problem. If you lose your job, or become temporarily disabled and unable to work, you may not have the ability to access your home equity. You may try to take out a home equity loan, but if you are out of work you could be denied. If it is approved, you will be adding debt while unemployed or on a fixed income. Instead of making extra mortgage payments, consider investing the extra money in more liquid options that offer growth potential or current income.

Real estate

Some shorter term and lower risk options to maintain liquidity in your cash would be; a Roth IRA, money market accounts, high yield online savings accounts, certificates of deposit, short-term bonds, or paying off higher interest debt. Combining multiple investment options while still putting extra money toward your mortgage will also be a good strategy, that way you can pay your mortgage off faster and still grow your investments, allowing you liquidity, and a shorter road to debt free living!

When balancing your debts and investments, it is important to consider multiple angles so you can find what works for you, and which options will make your money go further.

At CreditServices.com, our credit advisors will not only coach you throughout the process of repairing your credit, but also teach you valuable tactics that will provide you with a solid foundation for your future purchasing power.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Strong Credit For Home Lending!

Looking to obtain lending for a home?

Strengthening your credit score is a very important step to take, the earlier you start, the earlier you will get into your new home!

While there are plenty of qualified buyers in the 580 credit score range, today’s market is looking for 640 to 660 as a minimum. These scores will get you into a house, however a FICO score of 700 to 720 will get you a better deal, and 750+ will get you the best rates on the market.

The first step in determining your standing is pulling your credit to make sure your profile is strong enough to move forward and that you aren’t being penalized for old accounts.

At CreditServices.com, our credit analysts will walk through this process with you. Analyzing your credit report and disputing accounts that are invalid is a very tedious process, and something that we excel with. We are a top 1% performing Credit Service Organization, and our past clients say it the best.

If you are looking to improve your credit for mortgage approval, the experts at CreditServices.com will help you from start to finish, and achieve industry leading results by utilizing a strong background and knowledge of the requirements of the mortgage lending industry, and the steps that need to be taken in order to meet them.

Contact us today, and qualify for the loan you deserve sooner!

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Our Offering

CreditServices.com™ Service Levels have one of the Nation’s highest success rates among Credit Service Organizations. Specific services include validation through our meticulous bureau discovery process, credit rebuilding strategies and options, credit education on profile management, coaching on the FICO™ and Consumer scoring formulas, and continued support with advising and consulting throughout your specific credit service process.

We are an award winning consumer-oriented company and love to deliver the results that our clients deserve! Whether your goal is obtaining a mortgage, auto loan, or general credit improvement for purchasing power, we have a program for you.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Low Rates, Can You Take Advantage?

The interest rate you agree on for a mortgage heavily influences the affordability of your home. Half of a percentage point higher could make a difference in monthly payments and whether you will have enough money left over for your other financial goals, such as paying off debt. Since interest rates have been hovering around historic lows, applicants can lock down a low rate before they begin to rise.

However, if your credit score is low, it may make sense to raise your credit standing before applying for a mortgage. Borrowers who have high credit scores are more likely to get the lowest mortgage rates, which could save them thousands in interest payments over the life of the loan.

CreditServices.com can get your credit in a position to receive great interest rates and save you thousands on your home!

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Seeking Mortgage Pre-Approval?

What Do Mortgage Lenders Want When Considering Your Application For a Loan?

Doing something for the first time can be daunting. You may be signing a loan to purchase a vehicle or interviewing for a new job, or it could be applying for a mortgage loan to buy your first home! Knowing exactly what mortgage lenders look at will make the process much less stressful.

There are four pillars lenders are going to consider for all home mortgage loans: property, income, assets, and credit. You will be required to supply documents showing proof of your status in these areas. You will be required to provide paycheck stubs, two years’ worth of W-2’s, and three months of statements for your bank accounts. Other required documents, if they apply to you, include divorce papers, bankruptcy information, and self-employment documentation.

The following information can also help you avoid some of the reasons why mortgage applications are turned down:

  1. Never protest when the lender requests you provide more documentation. Cheerfully provide everything they ask for.
  2. Do not apply for any more credit cards, even if it is just for a balance transfer.
  3. Do not go out while the loan is still being considered, and run up more debt, this may cause your loan to be denied.
  4. It’s not the time to change jobs while your mortgage application is in process. Before the lender will close on your loan, they will make sure you still hold the same job you had when you applied.
  5. Make sure you do not request to borrow more money than you can afford to make payments on. If your current rent is $900 per month, and you apply for a mortgage with a payment of $2,500 a month, you will need to prove you have the money to be able to make the increased payments.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.

Debt Delaying Home Ownership?

If you have outstanding collections, judgments, or tax liens holding you back from obtaining a mortgage, they will likely need to be resolved before moving forward. Having active management and negotiation on collection or judgment accounts during the course of your loan application process is important and in most cases a must have option to be successful.

bankruptcy 1

CreditServices.com™’s preferred debt settlement affiliate; DebtServices.com™, works on behalf of clients to lower their debt amounts and settle outstanding debts that are hindering loan obtainment.

One of the main reasons behind the creation and development of this partnership is to have a solution and ability to help structure a plan for consumers during their process of paying off any collection account. This strategic partnership delivers tremendous value because having activity on collection accounts that are reporting on one or more of the three major credit bureaus will trigger new up to date activity in the Date of Last Activity (DOLA) section of the credit report. This new activity will negatively impact the consumer’s overall credit risk by updating the reporting negative account to ‘current’ on your credit history section. This new activity and negative risk will in fact, lower your overall score(s).

CreditServices.com and the debt negotiation specialists at DebtServices.com work closely with each client as needed on which accounts to settle and when, in relation to their overall credit status and type of lending opportunity they are looking to obtain.

DebtServices.com has the ability to negotiate payment for deletion tactics, payment plan options, reduction of interest due, settlement of total amount with a fraction of the original cost, judgement services and the list goes on. Each step is taken in a matter that is to restrict and limit the amount of negative activity that takes place on the client’s credit report profile and score. The important aspect to all of this is that each step taken will be specific to the consumer’s overall goal and what is best for their situation.

DebtServices.com’s negotiation specialists have years of experience from working with thousands of settlements over the years, and industry connections that have been built through this work that directly benefit the consumer.

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Each person’s credit situation is unique. Results may vary, and CreditServices.com makes no guarantee of any particular result. The information in this site is intended for general informational purposes only, and is not to be construed as legal, tax, accounting, or other professional advice.  As such, it should not be used as, or relied upon, as a substitute for seeking professional legal, tax, accounting, or other advice. All information in this site is provided “as-is”, with no guarantee of completeness, accuracy, timeliness, or other results obtained from its use. In no event is CreditServices.com, its Affiliates, or their agents or employees liable to you or anyone else for any decision made or action taken in reliance on the information in this site. “Affiliate” means any entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or common control of the party in question.