REAL
ESTATE LOAN PRE-APPROVAL
|
It has been completely documented that to effectively negotiate a real
estate transaction, you should obtain a real estate loan pre approval
before you commence looking at properties. In addition, the three major
credit bureaus (TransUnion, Equifax and Experian) use a credit rating
FICO score developed by Fair, Isaac & Co.). The mid score in most cases
governs the loans that are available to the consumer. The scores range
between the 300's to the high 900's and a higher score makes it easier
for the consumer to get their loan approved.
E.F.M. Financial Center has a multitude of mortgage programs. Even though we have
an Easy Loan Application, we advocate that our customers contact us through our
Financial Analysis form.
According to Fair, Isaac & Co.:
 |
35% of your score is determined by the payment histories on your
credit accounts, from Visa cards to department store and car loans. The model assigns
greater weight to recent missed payments than late payments years ago. |
| |
|
|
30% of your FICO score is based on the amounts
you owe creditors. This includes the
total of what you owe on all your accounts, and whether you carry
an unpaid balance on certain accounts like credit cards. Interestingly, the statistical
model sometimes gives slightly higher scores to people who show an unpaid balance on
a credit card, with no late payments, than to those who run no balances.
|
| |
|
|
15% of a FICO score is attributed to the length of time you've
been a credit user. The longer, the better, assuming you pay on time. |
| |
|
|
10% of your score is based on whether you appear to be loading
up on new credit. In other words, have you been applying for and receiving new loans
in recent months? The more you've done so, the lower goes your score.
|
| |
|
|
The final 10% of a FICO score is governed by the types and "mix"
of your credit uses.
Though the Web site doesn't say so, consumers who borrow money
from finance
companies may be penalized slightly because the FICO models associate
higher default risks with such lenders' customers.
|
| |
|
Once the client submits the Easy Loan Application with the documentation
required, E.F.M. Financial Center can issue a complete loan pre approval
only contingent on the appraisal report of the property they are going
to purchase. The client now becomes a "cash buyer" because the financial
institution has pre approved their loan and set aside their "cash".
"A CASH REAL ESTATE BUYER WILL
SAVE TIME AND MONEY"
Back
to Home Page
|