ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
21.08.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


New Home Mortgage : How Your Credit Score Affects Your Loan

Author: Alan Lim Author Ranking Gold Featured Author | Posted: 10-05-2008 | Comments: 0 | Views: 6 | Rating:  (53) Article Popularity - Blue (?) Got a Question? Ask.
Sign Up Now!

Ability to obtain a loan

The first indication that there may be a problem with your credit score might be when you try to obtain a new home mortgage and are unable to find a lender that will talk to you. Actually, most people, even those with a really low credit score will be able to find a loan of some sort to purchase their home. It just may cost a lot more in interest rates than you had planned. If you can obtain a loan, it may take more justification and documentation than would be required with a good credit score.

Which lender to select

If your credit score is too low, you may not be able to get a new home mortgage with your lender of choice. The difficulty with having to switch to another lender is that you need to document your second try just as thoroughly as your first effort. In the meantime, because of the reviews on your credit bureau report, your score may actually drop, particularly if the report that the first lender denied you credit before the second lender is approved hits the report. The extra time to document your information for the lender can be one of the most discouraging parts of applying for a mortgage loan.

Loan term

The length of time that you will set in order to complete repayment of your new home mortgage loan will be affected by your credit score. This factor is probably of less significance than some of the others, but still must be taken into consideration. The direct impact is caused when a low credit score causes the requirement of higher interest rate. This may make the payment too high for the borrower if the shorter term loan is selected. So, the borrower ends up paying more interest over a longer loan term just to keep the payment within manageable levels.

Loan rate

The new home mortgage loan will almost certainly be impacted by the credit score of the borrower. Generally, the lower the score, the higher the interest rate. If the score is too low, the borrower may not be able to obtain a conventional home mortgage at all. Conversely, better terms will be available to the borrower who has high credit scores. It is important to know your credit score and make certain that the reports by the major credit bureaus are cleaned up and accurate.

Type of loan

Another way in which the level of your credit score affects the new home mortgage loan you can obtain is in the type of loan that is available. The major types of loans that are available include adjustable rate mortgage, fixed rate mortgage and balloon payment type mortgages--usually paired with ARMs. Again, sometimes lenders will steer the borrower to an adjustable rate mortgage so that increasing interest rates will be borne at least in part by the borrower rather than the lender. The borrower should avoid getting into a loan that results in negative equity in the property.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/mortgage-articles/new-home-mortgage-how-your-credit-score-affects-your-loan-409846.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:

Finding resources on the internet to help you obtain information about a home mortgage is simple when you take advantage of the links available at Home Mortgage or New Home Mortgage. Know what to look for and where to find it with this all purpose website.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

Do's and Don’ts in Getting a New Home Mortgage
By: Alan Lim | 10/01/2008 | Mortgage
Thinking of getting a new home mortgage? Here is some essential information you need to know before refinancing your way to financial relief.

Factors to Consider When Getting a New Home Mortgage (refinancing)
By: Alan Lim | 10/01/2008 | Mortgage
Thinking of getting a new home mortgage? Well, it may not be as easy as you think. Here are some considerations you need to think about before plunging right in.

New Home Mortgage - Choosing the Right Mortgage
By: Alan Lim | 11/06/2008 | Loans
Since a new home mortgage is probably the largest financial obligation most people will make during their lifetime, it is important to select the right mortgage. You want one that provides payments that will fit within your budget and helps you achieve the goal of home ownership.

New Home Mortgage – How to Determine What You Can Actually Afford
By: Alan Lim | 01/08/2008 | Mortgage
Here are some ways to help you determine the guidelines for the size of your new home mortgage loan. If you plan and acquire the right size home loan, you are less likely to run into financial difficulty.

Key Documents for a New Home Mortgage
By: Alan Lim | 01/11/2007 | Mortgage
Obtaining a new home mortgage these days is difficult enough without the added hassle of paper work. In most cases, however, paperwork is exactly what will happen when a mortgage is given.

You’re in Control With a New Home Mortgage
By: Alan Lim | 01/11/2007 | Mortgage
If you have looked for your new home and cannot find it, perhaps building a new home is a consideration. You will get all the amenities you want and locate it in just the right spot for your needs. But how do you go about a new home mortgage if there is nothing there to begin with?

Where Should you Look for Better New Home Mortgage Rates?
By: Alan Lim | 17/02/2008 | Mortgage
If you like to minimize your repayments for your new home mortgage, then you need to ensure that your interest rate is also low. Know where you can find the best deals when it comes to interest rates for your new mortgage.

New Home Mortgage - How to Determine What You Can Actually Afford
By: Julian Lim | 08/08/2008 | Finance
Here are some ways to help you determine the guidelines for the size of your new home mortgage loan. If you plan and acquire the right size home loan, you are less likely to run into financial difficulty. It is unfortunate that many people applying for a new home mortgage...

Got a Question? Ask.

Ask the community a question about this article:

Q&A Powered by:
Powered by Yedda 

Latest Mortgage Articles

Applying For Mortgages For First Time Buyers
By: Anna Stenning | 21/08/2008
Looking at how to apply for mortgages and the tips on saving your money.

Understanding the Difference Between a Simple Purchase Loan and an Owner Builder Construction Loan
By: Chris Esposito | 21/08/2008
An owner builder must understand that his construction loan will be different than a simple purchase or refinance mortgage. Understanding these differences allows you to plan for a very profitable project. However, an owner builder who does not account for the nuances of an owner builder construction loan as compared to a simpler mortgage is going to set himself up for failure from the start.

Adjustable Rate Mortgage
By: Andri Irawan | 20/08/2008
Another common type of home loan is the adjustable rate mortgage or ARM. With this type of loan, the interest rate will fluctuate depending on the 6 different real estate indexes.

Bad Credit Commercial Mortgage – “the Parties Over”
By: jeff rauth | 20/08/2008
If you’re a borrower with bad credit looking for a commercial mortgage I have bad news for you. Your options are greatly reduced from just 6 months ago. In general, it is getting serous out there for a lot of people that for one reason or another that have credit scores lower than 600.

Earn Money By Checking Your Mortgage Refinance Rates
By: Juhani Tontti | 20/08/2008
To refinance mortgage rates can be the best increase to your monthly income during a long period of time. Mortgage refinance rates can be lower than your present rate, especially if you have agreed it years back.

Types of Home Mortgage Loan That You Should be Aware
By: Alan Lim | 20/08/2008
Home Mortgage Loan can be fixed rate or adjustable rate. Your manner of choosing is dependent on the kind of borrower you might be.

Applying for Bad Credit Mortgage Loans
By: Joe Boyd | 20/08/2008
Many people make the assumption that since they have less than perfect credit, they are barred form owning their own home. They are under the impression that no one will trust them with a mortgage; while this may have once been the case, the rules have loosened up somewhat in the last several years.

Fixed Rate Mortgages Hold Steady Again While Arms Nudge Down
By: Ki Gray | 20/08/2008
This article looks at recent changes with mortgage interest rates.

More from Alan Lim

Types of Home Mortgage Loan That You Should be Aware
By: Alan Lim | 20/08/2008 | Mortgage
Home Mortgage Loan can be fixed rate or adjustable rate. Your manner of choosing is dependent on the kind of borrower you might be.

Internet Home Based Business – What are the Legit Work at Home Hidden Opportunities
By: Alan Lim | 20/08/2008 | Home Business
There are many types of legit work at home opportunities available as an internet home based business. Choosing the right one is a matter of understanding and accepting your strengths.

Make Money With Adsense to Earn Money Fast – How Understanding the Concept Can Help You Greatly
By: Alan Lim | 20/08/2008 | Business Opportunities
Since 2003 people have been able to sign up and make money with Adsense in order to earn money fast. It is a simple concept but very effective for those willing to understand and follow the policies.

How Would You Like to Work From Home to Earn Money Fast?
By: Alan Lim | 19/08/2008 | Business Opportunities
To work from home and earn money fast, you need to be well equipped with the right information. Read this article before you launch into this home career.

Are Online Data Entry Jobs Really in High Demand to Earn Quick Money?
By: Alan Lim | 19/08/2008 | Online Business
The convenience the online data entry jobs provide means that they can be done in the home office or in your living room at a computer desk to earn quick money.

How to Make Money – Making Extra Money by Playing to Your Strengths
By: Alan Lim | 19/08/2008 | Business Opportunities
When you set out to learn how to make money, it's important that you pick and choose work that fit your personality, experience and abilities to help you making extra money.

Get Paid to Take Surveys Online – Surveys for Cash and Other Payment Methods
By: Alan Lim | 19/08/2008 | Online Business
When you get paid to take surveys online, you can be certain that you WILL be paid. The method may vary, ranging from surveys for cash or other payment methods but the concept is secure.

Fail to Make Money Online With Affiliate Programs? Read This!
By: Alan Lim | 17/08/2008 | Online Business
For those serious about becoming wealthy by using affiliate marketing to make money online, being committed is the first place to begin your journey into this new strategy.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below