GA Bad Credit Mortgages – 5 Steps To Insure Your Adjustable Rate Mortgage Doesn’t Swamp You
A record number of adjustable rate mortgages are reaching the point where the lender is going to “reset” the interest rate. If you used a subprime adjustable rate mortgage to finance your home, your interest rate could go up by 3 to 5 percent! This is a large part of the mortgage crisis being talked about in the news so widely.
Everyone, and particularly those who had a difficult time qualifying when they bought their home, should take the following 5 steps to make sure that they do not get surprised by a enormous jump in their house payment.
1. Find and check your closing/escrow paperwork. In particular, you want to locate the “observe” associated with your mortgage and any riders attached to it. This form will tell you when and by how much your interest rate can adjust.
2. Get a copy of your credit report. Because of recent changes in the law, each of the three major credit bureaus is required to give you a copy of the information they have on file about you. They have produced a website where you can access these reports quickly. There is a link to their site at the below.
3. Review your credit report and closest challenge any errors that you find in it. Also, be sure that at the very least you keep all your bills paid on time without exception for the 6 months preceding the time you need to refinance. Ideally, you will have kept your credit good since you bought the home, but if you have experienced difficulties, you are only eligible for the new FHASecure mortgage if you have paid the last 6 months payments on time.
4. Gather together all the information that a lender will need to approve your loan. At a minimum, you will need to have your past 2 years’ W2s (or tax returns if you are self employed) in addition as your latest pay stub showing at the minimum one complete month’s earnings. You will also need all pages of your last two bank statements and any retirement or savings account statements. You will need a copy of your HUD-1 closing statement from your present loan and a copy of the before discussed observe showing the terms of your present mortgage, in addition as a copy of your danger insurance policy and character tax bill.
5. at the minimum 3 months before the date your mortgage interest rate is scheduled to reset, start contacting mortgage lenders to discuss your situation. The best method of finding a lender is to get referrals from friends and/or professionals such as your accountant. Talk to more than one lender about your situation. There is no need for each of them to pull your credit report. already though the copy you will have does not show your credit scores, a reputable and knowledgeable mortgage consultant should be able to give you a good idea of how they might help with your situation. Once you have chosen your lender, they can pull your credit when you make your official application.
Although more or less effort may be required in particular individual situations, these five steps will guarantee that you have time to appropriately and effectively surmount any problems getting qualified for another loan.