Upper Peninsula, Michigan Mortgages
Upper Peninsula, Michigan Mortgages
There are scores of different sources out there (banks, credit unions, mortgage brokers, Internet services, etc.) and you ought to evaluate a few to truly find the one fits you best. Different Upper Peninsula lenders offer different rates, so it pays to shop around. A mortgage broker can also be used. Sometimes they can offer better rates than you can come across yourself, and will help you work through your options. Mortgage brokers are paid by the lending institution that is offering the loan.
Items required to qualify
IRS W-2 forms
Income tax returns (for the past few years)
Any alimony or child support payments (paid or received)
Credit report - It is wise to request a copy of your own credit report so that you can review it prior to lenders do. It's estimated that almost 80% of credit reports hold errors, so this gives you an opportunity to amend them before you apply for a loan, plus taking basic steps to boost your credit score.
A point is 1 percent of the loan amount, and lenders can charge from 1 to numerous points on a loan. Points are paid as part of closing costs. Discount points are prepaid interest; the greater number of points paid at closing, the lower your interest rate will be. Origination points mainly just a fee to cover the lenders cost of making a loan.
Discount points are tax deductible, but origination fees aren't. When choosing between loans with points or no points, think about how much money you've available for closing, and the length of time you plan to own the home. If you don't have a lot of money for closing, a loan with no points will require less money up front. If you intend to live in the home for an extended time, a lower interest rate will eventually be better for you. You can request the seller to pay the points as part of the purchase agreement; if they agree to pay the points, you still claim the tax deduction.
Upper Peninsula lenders will ask for a copy of your credit report when your loan application is taken into account. This report gives all the details about your financial history, payment records, total debt, and any bankruptcies.
The information on this report is used to create your credit score or FICO score, a numerical rating of your creditworthiness. Credit scores range from 300 to 900, with most people falling somewhere between 600 and 700. The higher your credit score, the more plausible they will offer you good rates and loan terms. Factors affecting your credit score include the number and frequencies of your delinquencies, the length of your credit history, and a review of your credit limits.
Close unused credit card accounts.
Settle any outstanding accounts, verifying all listed account numbers to make certain they belong to you. Check your loan balances and late payments.
You may be required to explain certain items to lenders.
Pre-qualification and Pre-approval
Pre-qualification is an approximation of how much mortgage you can afford. The whole process might take only minutes or a few hours at most, and is generally free. While a pre-qualification is non-binding to the lender (because the information you provide to them has not been verified), it does serve as a good indication to potential sellers of your general creditworthiness. Pre-approval takes pre-qualification one step further. To get pre-approved takes more time. The Upper Peninsula lender will contact your employer, your bank and others to confirm your income, assets, debts and credit history, and then issue you a letter which states that your mortgage is approved for a specified amount within a certain timeframe. This process normally costs a small administrative processing fee which is often refunded at closing.