How do I know how much house I can afford?
Before you start looking at homes, you need to have some idea
of what you can afford. AllAmerican Mortgage Lending, Inc
offers a written pre-approval mortgage commitment. Receiving
a AllAmerican Mortgage Lending, Inc commitment turns you into
a "cash buyer".
How long does it take to get approved?
Some loans can be approved in as little as 1 hour providing
you supply your mortgage specialist with specific documentation.
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What documentation do I need to bring to
the application?
The financing program you select determines the exact documentation
required, however, generally speaking you should be prepared
to bring the following:
- Federal income tax statements
- W2's
- Current paycheck stubs
- Bank statements
- Asset and liability information
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How do I know which type of mortgage is
best for me?
There isn't a single, simple answer to this question. The
right type of mortgage for you depends on many different factors:
- Your current financial picture
- How you expect your finances to change
- How long you intend to keep your house
- And how comfortable you are with your mortgage payment
changing from time to time
Your AllAmerican Mortgage Lending, Inc Mortgage Specialist
will be glad to analyze your specific needs, review specific
examples and recommend a program just for you.
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How much of a down payment will I need?
It is probably less than you think. Many first-time buyers
are surprised to learn there is not a set answer to this question.
In general though down payments can range anywhere from three
to twenty percent of the home's value.
What does my mortgage payment include?
For most borrowers, the monthly mortgage payments include
three separate parts: a payment on the principal of the loan
(that is the amount borrowed); a payment on the interest;
and payments into a special account (called an escrow account)
that your lender maintains to pay for things like your hazard
insurance and property taxes. These elements are called P.I.T.I.
(Principal-Interest-Taxes-Insurance).
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How will I be notified of closing?
In a typical transaction the buyers and sellers and their
attorneys determine jointly where and what time the closing
will take place. AllAmerican Mortgage Lending, Inc is then
notified by the closing agent of the closing arrangements.
Your attorney should also confirm this date with you. In the
case of a refinance, your mortgage specialist and/or their
processor will coordinate with you as to when you want to
close.
What happens after closing?
At closing you will be given temporary coupons with which
to make your first payments. If you do not receive a coupon
book in the mail by your 3rd payment or if you have any other
questions please do not hesitate to call our mortgage customer
service department at 763-560-5815.
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How to Improve Your Credit
- Check Your Credit Reports
- Correct Errors on Your Credit
Reports
- Close Unnecessary Credit Accounts
- Track Your Spending
- Set New Spending Goals
- Pay on Time, Every Time
- Consider Using Your Home's
Equity for Debt Consolidation
- Get Reliable Information and Help
with Credit Issues
- Consider Using a Qualified and Reputable
Credit Counselor
Back to Frequently Asked Questions
Check Your Credit Reports
Contact each of the 3 national credit bureaus to get your
current credit report. Review them carefully for accuracy.
Back to How to Improve Your Credit
Correct Errors on Your Credit
Reports
Credit bureaus may not always have accurate
or up-to-date information. If you find mistakes on your reports,
write the creditor and the credit bureau.
When you write the creditor, describe
the problem clearly and include any documentation you have
(such as a copy of a check or a receipt). It's a good idea
to send the letter by certified mail so you have a record
that you mailed the letter and that it was received.
Send a written explanation to the credit
bureau, along with copies of your documentation. Ask the credit
bureau to include a brief explanation of your side of the
story when furnishing reports to lenders. Both the credit
bureau and the creditor are legally required to investigate
a credit dispute and report back to you in writing within
a reasonable time (usually no more than 30 days).
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Credit
Close Unnecessary Credit Accounts
If you have a lot of credit accounts, consider closing those
you aren't using or don't think you'll need. That helps remove
the temptation to overspend. Don't close all your accounts
however — you need to have some credit accounts in order
to maintain a solid credit history.
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Track Your Spending
Do you have a good idea of where your money goes on a monthly
basis? Most people spend a great deal of money on little extras
(fast food, beverages, little treats and splurges) without
really being aware of it. Try tracking where all your money
goes for a month to get an idea of what you must spend versus
what you're actually spending. Remember to factor in an allowance
for expenses that aren't monthly, like semi-annual or yearly
taxes, auto insurance and maintenance expenses, home maintenance,
gifts and vacations.
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Set New Spending Goals
Once you know where your money has been going, take charge
and establish how you want to spend to meet your goals. Then
keep tracking your spending monthly, to make sure your plan
is realistic and help reinforce your new spending habits
Back to How to Improve Your Credit
Pay On Time, Every Time
Set up a simple system to remind yourself
when bills are due. Keep all bills together, in order by the
date due, and check them weekly. Or write the dates due for
each bill on your calendar, and check your calendar frequently.
Pay monthly bills, or set aside the
money, before spending for "extras." If you can't make payments
because of a short-term emergency, talk to your creditors
before you miss a payment to see if they can help you with
reduced or deferred payment schedules.
Back to How to Improve Your Credit
Consider Using Your Home's
Equity for Debt Consolidation
If you've owned your home for a while, you
may have equity you can use to pay off high-interest debt
with a "cash out" refinance loan or Home Equity Line of Credit.
Since home loans can have much lower interest rates than credit
cards and other types of loans, you can save a lot of money
on interest. Because interest on home loans is often tax-deductible,
you may save even more (consult your tax advisor).
Back to How to Improve Your Credit
Get Reliable Information and Help with
Credit Issues
If you're feeling overwhelmed by credit issues
or problems, there are excellent free and low-cost resources
to help you.
For information and publications on
personal finance and credit problems, try these federal information
resources:
Back to How to Improve Your Credit
Consider Using a Qualified and Reputable
Credit Counselor
Avoid companies that promise to "fix" your
credit for a fee. The fees can be quite high and many of the
services are scams. Some companies may suggest bankruptcy
to "clear" your debts, and that can be very bad advice. Bankruptcy
should be absolutely your last resort because bankruptcy is
included in credit reports for up to 10 years and can negatively
affect your ability to get loans, obtain other credit or even
get a job.
Instead, contact a reputable nonprofit
consumer credit counseling organization, like the ones below.
They can usually provide reliable information to help you
work on long-term solutions. The National Foundation for Consumer
Credit can even refer you to credit counselors in your community.
National Foundation for Consumer Credit
8611 Second Avenue, Suite 100
Silver Spring, MD 20910
1-800-388-2227; |
