The higher the loan-to-value ratio -- the higher the perceived risk.
Borrowers with great FICO scores may even face challenges when applying for a new mortgage, if the loan-to-value ratio is higher than 90%.
Before you apply for a mortgage, it is important that you do some research of your own.
1. Know the value of your home. Contact a real estate appraiser and ask for a value check. (Sometimes, you can arrange this service without ordering a full appraisal.)
2. Know your credit scores. This will prevent multiple lenders from pulling your credit report.
3. Evaluate your true financial needs. What are your short and long-terms goals? Do you really need additional cash-out over-and-above your current mortgage amount?
4. Make a list of questions and concerns that you want to address with your lender.
Also, don't panic if the value of your home is not as high as anticipated. If you brought well, your property will probably hold it value through these trying times.
Do your research and plan ahead, these few items will put you back in the game.
>REQUEST A RATE QUOTE
Sonja Perdue
Mortgage Consultant
Rush Financial
312.324-3871
641-354-2245 FAX
No comments:
Post a Comment