Mandy asks…
What mortgage company gives the best interest rates to someone after bankruptcy?
I already own a house and refinanced last year after being only a year out of bankruptcy with a rate of 7.25.
and…. if you don’t know of a bank to refer me to, please don’t bother answering. the 2 answers below are useless.
answers:
If your bankruptcy is recent, I doubt you will find an affordable rate… Which is one reason you may not want to buy a house right now. If you cant get a good fixed rate and payment (on a 15 yr loan or less), and a payment no more than 25% of your take home pay, I would not buy.
Michael asks…
does your credit score drop if you “shop around mortgage rates” at different banks?
am looking to buy a house for first time and i want the best mortgage rates. Ive heard your credit score suffers if u go to different banks. is this true?
answers:
Hard inquiries hurt your score about 1 or 2 points (if you have good credit).
Up to 5 points if you have bad credit.
Very, very minor part of your fico score (from an 850 top score).
Also all inquiries done in a 3 week window are treated as one.
This is to allow the customer to “shop around” for a good rate.
In conclusion: Don’t worry about this. Compare and get a good rate !
Paul asks…
Has anyone ever dealt with Lending Tree?
Are they legit and can they get you the best mortgage rates for your FICO score and situation? I hear they are the highest bank who are competing for your business is this true?
Are there any other companies like Lending Tree out there?
answers:
Here is the facts, Lending tree started of as nothing but a lead source seller. When you go to lending tree all they do is sell your information to 4-10 companies for a fee i pay $39 each. The bad thing is along with the $39 fee the also have a CLO fee so these vary from $350-1000 all these get passed on to you some how. You are better off calling a few local lender yourself and get your best deal. Oh by the way Lending tree has recently began originating there own loans as well. Good luck hope this helps
Mary asks…
Will this affect my credit score?
I want to buy a house and I’m trying to get the best mortgage rates through banks and mortgage brokers. The think is that they have to run my credit to see what I qualify for . I’ve been told that your credit wont be affected no mather how many times they run it as long as it’s within 15 days. It’s that true?
answers:
This is true to a point. Excessive credit checks can affect your score but a few within a short time shouldn’t. Be care of the broker situation however. They may continue to send your information out and you’ll find checks continuing well past the 15 days. I had that happen and when I selected a bank a few weeks later, my credit score had dropped because the broker had pulled my credit 27 times, including past the time I was working with him.
John asks…
What is the best way for me to improve my credit score?
I bought a house a year ago with my fiance.
I have been paying off my car monthly, all bills and mortgage are paid on time each month.
I use only a debit card. I tore up all old credit cards as I don’t want to get involved in that scam again. I only buy what I can afford to.
We wish to either sell or refiance our home in a year. Our rate is not bad and we don’t have one of those ones that is going to jump a huge amount but it is adjustable. We would like to sell and move out to the countryside in a year.
What are best steps I can do now to assure getting the best rate in a year?
I got rid of credits cards over 3 years ago.
answers:
Sounds like you’re doing almost everything you can. The only thing I can tell you from experience is it does improve your credit score if you have one or two credit cards and you charge something on them every month then pay the bill in full when it comes.
P.S.: Hope you live in an area where the housing market is booming or else you’ll probably take a hit on the house when you sell it — rule of thumb is you need to live in a house for at least three years to recoup the closing costs.
Sandra asks…
How to follow Rural Development Mortage Rates?
how do i follow the mortgage rate of a rural development loan? I am told that this is the best loan to go with considering…. but after Shopping around i am continually to get rates that are around 6ish instead of the 5.5% i am seeing at bankrates.com. I am told that this loan is higher considering i don’t have to put any money down and theres no PMI insurance….i Just would like to find a website that allows me to see what the rate is doing each day….Please help!
answers:
The first problem is with Bankrate, they advertise a national average rate that does not take in to account all of the various rate adjustments for things like score, loan to value and location. In addition USDA is not as well known or used as conventional or FHA.
I have 5.5% for a 30 day lock as of Friday.
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