How Can I Find Out Information About My Credit History?

 

Watch this video and take a few notes! There are three major credit reporting companies:

  • Equifax – www.equifax.com 1-800-685-1111
  • Experian – www.experian.com 1-888-397-3742
  • Trans Union – www.transunion.com 1-800-916-8800

Obtaining your credit history is as easy as calling and requesting one. Once you receive the report, it’s important to verify its accuracy.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port

How Are Pre-Qualifying And Pre-Approval Different?

 

Watch this video and it’ll make sense.

Pre-qualification is an informal way to see how much you maybe able to borrow. You can be ‘pre-qualified’ over the phone with no paperwork by telling a lender your income, your long-term debts and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

Pre-approval is a lender’s actual commitment to lend to you. It involves assembling financial records and going through a preliminary approval process. Pre-approval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port

What Disclosures Are Used For Loans Not Covered By TRID?

 

Creditors must continue to use the Good Faith Estimate, Truth-In-Lending Disclosure and the HUD-1 form for reverse mortgages, HELOCs, mobile home or other non-attached dwelling loans and others NOT covered by TRID.

Housing assistance loans for low- and moderate-income consumers are partially exempt from TRID disclosures, and have specific rules.

Creditors are not required to provide Loan Estimate and Closing Disclosure forms and related booklets and statements for these loans.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port Florida

Can Creditors Revise TRID Loan Estimates?

 

Creditors are generally bound by the initial Loan Estimate. They are permitted to provide a revised Loan Estimate only under certain changed circumstances. These include circumstances that:

a) increase settlement charges beyond the legal tolerance limits

b) affect YOUR eligibility or change the value of the loan security.

Also,

c) if the interest rate was NOT locked and the new rate changes points or lender credits

d) for settlement delay on new construction loans within the stated revision window – typically 60 days, or

e) if YOU indicate an intent to proceed more than 10 business days after the Estimate or request loan term revisions.

Changed circumstances are extraordinary events beyond the control of you or the lending parties, OR changes or inaccuracies revealed in the information the lender used in preparing the Loan Estimate, OR new information on you or the transaction that the creditor did not use in the Loan Estimate.

Suncoast Title One has offices in Punta Gorda, Port Charlotte and Punta Gorda Florida

What Is A Credit Bureau Score And How Do Lenders Use Them?

 

As we show you in this video, a credit bureau score, or “credit score” is a number based upon your credit history that represents the possibility that you will be unable to repay a loan.

Lenders use it to determine your ability to qualify for a mortgage loan.

The better the score, the better your chances are of getting a favorable loan.

Know your score and ensure that lenders have current information about it.

Suncoast Title One has offices in Punta Gorda, Port Charlotte and Punta Gorda Florida

What Is The Best Way To Compare Loan Terms Between Lenders?

 

Watch this video and take a few notes!

First, devise a checklist for the information from each lending institution. You should include:

  • the company’s name and basic information
  • the type of mortgage
  • minimum down payment required
  • interest rate and points
  • closing costs
  • loan processing time
  • whether prepayment is allowed

Speak with companies by phone or in person. Be sure to call every lender on the list the same day as interest rates can fluctuate daily.

In addition to doing your own research your real estate agent may have access to a database of lender and mortgage options or suggest a variety of different lender options.

Suncoast One Title has offices in Punta Gorda, Port Charlotte and North Port Florida

Understanding Loan Estimate Comparisons

 

Page 3 of your Loan Estimate includes measures to help you compare loans.

“In X Years” shows the total amount you will have paid in that time, and the dollar amount applied to your loan principal. The ratio between total paid and principal reduced may change over time.

The APR shows interest PLUS fees as an annual ratio – APR is the actual percentage this loan costs per year.

The TIP figure relates the interest you will pay over the life of the loan to the loan amount. For example – a TIP value of 25% on a $100,000 loan means you will pay $125,000 – $100K principal plus $25K interest – over the life of the loan.

Suncoast One Title has three locations in Punta Gorda, Port Charlotte and North Port

Understanding Your Loan Estimate: Services You CAN Shop For

 

These costs are paid to outside parties and YOU are free to shop and compare providers for a variety of services. These might include pest inspection, or  a survey to verify property lines or a range of Title-related services.

Title services might include:

  • a Lender’s title policy, which protects their legal interest in their loan collateral- usually the property itself
  • settlement agent fees, paid to the individual or company responsible for facilitating the final transaction
  • Title Search, which clarifies and documents legal ownership of the property
  • a title insurance binder, which allows potential future use of the current title search results, conditions and exclusions for a short period to lower the cost of future title insurance.

If you select service providers from the list provided by the lender, their fees cannot change by more than 10% between the Loan Estimate and the final Loan Disclosure. If you select other providers the lender is not responsible for changes in those costs.

Suncoast One Title has three locations in Punta Gorda, Port Charlotte and North Port

Understanding Your Loan Estimate: Page 2, Loan Costs

 

Closing costs are fees paid when the title of the property is transferred to the buyer making them the legal owner.

Origination Charges are fees collected by the lender for the loan process. They may including fees for handling the loan application and “Origination Fees”, which are compensation paid by the creditor to the entity that originated your loan.

“Points” are fees paid to lower interest rates; points are considered prepaid interest for the buyer, and are usually tax deductible.

Finally, Underwriting is a payment to the lender for their assessing the risk that the loan might not be repaid, based on the loan specifics and your financial characteristics.

Suncoast One Title has three locations in Punta Gorda, Port Charlotte and North Port

Can My Settlement Charges Change?

 

Yes, if circumstances change, such as:

  • a natural disaster damages the property or affects closing costs
  • the title insurer providing the estimate goes out of business during underwriting
  • new information on you or the transaction affecting settlement is discovered.

If any of these events change 3rd-party charges beyond the 10% tolerance limit creditors may issue a revised Loan Estimate.

If a creditor issues a Loan Estimate they are presumed to have collected all 6 pieces of required information. They may not claim a change in circumstances by receiving one of these pieces of information AFTER issuing a Loan Estimate.

Suncoast One Title has three locations in Punta Gorda, Port Charlotte and North Port