I just got done helping a woman streamline their FHA home loan. It was a very easy loan and very beneficial for our client. When speaking with her about the possibility of a streamline refinance, she asked me a few questions that I though everyone considering this type of refinance would probably like to know.

The first thing that she asked me was “How would I know if an FHA Streamline be good for me?” That was an excellent question and one that we often get from our clients.

The answer is very simple! If you can reduce your interest rate by at least 1/2%, an FHA Streamline is for you! Most of the time, we can reduce it even more than 1/2%, but that is a good guideline to go by.

The next question that she asked me was about her interest rate and what it might be. Well, this gets a little harder to pin point, unlike traditional 30 year mortgages. There are a ton of factors that go into calculating an streamline interest rate.

• How long you have had your current loan
• What is the payoff amount
• If you want to skip some payments
• If you want to tie your closing costs into your loan

These are just a few of the major things that will influence your interest rate on a streamline refinance.

When speaking to clients who are interested in this kind of mortgage, I usually just tell them that it is wise to take the 1003 loan application, pull together their documentation, get everything to the processor, then all of us get on the phone and pound out exactly what YOU want from this loan. Then we can tweak things to get your rate down at least 1/2% or lower. Once we do that, we can lock in the rate and finalize things.

FHA Streamlines are very easy and fast to take care of and when you tie in your closing costs, you have nothing to lose, only gain by reducing your mortgage payment and increasing the amount of money you keep in your bank account.

To get started on your streamline, click here now!

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The financial crisis that we are all experiencing and the meltdown of the stock market are forcing lenders to tighten their belts when it comes to mortgage lending practices.  At the present time, your credit score has never played such a huge roll in determining your ability to obtain and repay a loan.

If you need to boost your credit score, the first thing you must do is find out what your credit score is.  You can get your credit score for free from FreeCreditReport.com.  Once you know your credit score, you can take the steps necessary to boost that score.

When lenders are summoned to supply a person a loan they go to great lengths to research the borrowers credit.  They look at everything from the past seven to ten years.  Within that time period, they look at your purchasing behaviors, when you make your payments, how much you pay when you make your payments, and your opened and closed accounts.

You need to make decisions as to which accounts you need and which accounts you do not need.  Close those that you do not need and begin consolidating your debt on the remaining accounts.

Building credit takes time!  Restoring credit takes even more time!  Financial Web provides some great suggestions on how to boost your personal credit score.

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Each of these things are definitely within your control and you can do some things to help make you a more attractive mortgage candidate.

Repair Your Credit & Increase Your Credit Score
Your credit score says everything about you and your ability to repay a loan issued to you and do it on time very single month. People with lower credit scores, can definitely expect a much higher interest rate tacked to their home loans, if your score is below 650 you will have a VERY difficult time getting a mortgage loan, if at all! However, those with scores above 800 will have the lowest interest rates and have no problem getting a loan.

Get A Higher Paying Job Within The Same Industry
If you are having a hard time getting qualified for a loan because you don’t make enough money to pay for the home that you are interested in, you should should start hunting for new job that pays more. One thing you need to take note of, lenders like to see a long, stead history of employment, so if you want to be considered for the loan after the job change, it needs to be in the same line of work. If you need a little more nudging and encouragement about switching jobs, you can click here.

Save Your Money Like A Mad Man
It is no secret that the larger your down payment is, the smaller the loan amount will be. Not only that, but the lenders that are considering you will see you as a less risky borrower.

Don’t Ever Pay More For A Home Than The Appraised Value
This is pretty much a no brainer, since the bank or lender will not want to lend you any more money than the actual property is worth.

Reduce The Amount Of Debt That You Carry
Other than your credit score, debt is one of the biggest reasons why people cannot qualify for a home loan. There is no magic number as to how much debt you can carry in addition to your mortgage, but lenders will be much more likely to lend you more money, if you have more debt.

I hope you can take some of these things to heart if you are considering purchasing a home in the next few months. You need to play the game and play it well if you want win!

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