Checklist for Boosting Your Credit Score

The average American's credit score is 723. Having a high credit rating will help you with your AZ Refi application, and final rates.   In fact, the first thing you should do when applying for a n AZ Home Loan, is to obtain your credit report, check it for accuracy, and be aware of any issues that come up.

Moving forward, here's a checklist for increasing your credit score

1. Pay on Time Every Time 

Every lender wants to know that you will pay your bills on time, and preferably in full, every time.

2. Use a Variety of Credit

A mix of mortgage loans and credit cards shows that you are adept and able to pay back a variety of both large and small financial promises.

3. Keep Your Accounts Open For A Long Period of Time

Don't open accounts to take advantage of a free offer or points, and then close it right away.  The longer your credit history with an account, the higher your credit rating will be.

To see all of the factors that affect your personal credit score, you should check your credit report.  See your Credit Score for $0 at CreditReport.com.  It’s Free and available in seconds..  They will give you a free detailed, personalized analysis of your credit report with advice on how to improve it. (And checking your own credit report will not hurt your credit score.)

Your credit report  will show you details like accounts with past late payments, the various types of credit you've used, current balances and recent requests for credit. You also have the opportunity to fight negative or wrong information on your file. They can also refer you to credit repair agencies if you need additional support.

AZ Refi - Are You Considering Refinancing Your Home Loan? Part 4

Maybe Refinancing Isn’t the Best Option For You 


Homeowners who are considering a refi quickly come to realize the value of evaluating multiple refi options to determine which is best for them. 

What some come to realize is that the best option may be to not refinance.  This is often labeled as the "do nothing" option because it speaks to the situation the homeowner creates if they don't make a change in their mortgage. 

Here are the considerations for each refi option you may be reviewing:

• The Estimated Monthly Payment
• The Total Amount of Interest Paid Over the Entire Life of the Loan 
• The Term of the Loan (Year it Will Be Paid Off)
• Amount of Time Owner Will Need to Break Even on Closing Costs From the AZ Refi 

Arizona homeowners should look closely at the cost of their refi options compared to the cost of their current mortgage.  Evaluate this info in a spreadsheet or on a legal pad so you can look at the numbers side by side.  Often it will be really clear what your decision will be.

Arizona Home Loan Modification

An update on AZ Home Loans through loan modification.

How the AZ Rate and Term Refi works

The Arizona Rate and Term Refi simply lowers you interest rate.  For example, if your currentinterest rate is 7%, you will refi to 6%.  The Rate and Term refi can have zero costs OR you have the option to pay an additional amount upfront to buy down your interest rate.

A common question is whether there is a no cost AZ Refi available.  The answer is yes, but keep in mind that there are fees incurred during hte refi.  How else would an appraiser and title company be able to stay in business?

Here is how a "No Cost" AZ Refinance works...

First, that's just a term.  You have to realize there is always a cost somewhere.  On a zero-cost refinance, you will pay a higher interest rate.  Which isn't always a bad thing.  For example, if you are a short-term investor and want to sell your property after a remodel.  Given this scenario, if you invest a few thousand in closing costs, you won't be invested long enough to recapture your investment.  Or, you can simply buy down your rate by paying points.

If you are going to live in or keep your home for a few years, then it will be in your best interest to get the lowest rate by paying the closing costs.   With this alternative, you'll save on your monthly payment and you will break even within a few years.  Just figure out where your break even point is.  Then you'll be able to determine where your best refi option is for your AZ Home Loan. 






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AZ Refi: Cash Out Option

If you live in Arizona and are looking at the "cash out" refi option for your AZ Home Loan, you should consider the pros and cons before you make a decision. 

There is a higher rate penalty to the cash out refi (because of the cash out part) however, this option is widely considered to be one of the best ways to borrow money.  It's hard to find a better rate when you need the cash.  If this is your first mortgage refinance, then you can also claim the interest as a tax deduction (this isn't available for second mortgages unless the money is used for home improvements). 

If you refi your first mortgage, it will cost more than obtaining a new line of credit, however, the additional cost difference can be consolidated into the new refi, so you won't have any out of pocket expenditures.  

Then, a home appraisal and your AZ Title insurance are the only items that you will have out-of-pocket expenditures for. 

Remember that there is a three day cancellation policy when you have an Arizona Refinance.  During this 3-day period, make sure and re-review all of your papers and be certain in your decision.  Even though you've signed the papers, you still have three days to reconsider.

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The First Step in your AZ Refinance: Obtaining Your Credit Score

The biggest obstacle to most homeowners looking for an AZ Refinance (AZ Refi) is a poor credit score.  So you should start off by researching your credit score and fixing any credit issues before you contact any Arizona mortgage company. 

You will get your credit score from a credit report, which is just a record of your borrowing and repayment history.  All financial institutions including credit card companies, banks, auto loan companies, etc. report your payment history to one, two or three of the major credit reporting companies in the US.  These companies include: Equifax, Experian, and TransUnion.

You will see two types of financial reporting that these firms track and report.  They include:

1. "Applied for credit" -- which simply means that you requested to borrow money from the lender that's reporting the application and

2. "Not applied for” credit -- which means that there are bills, civil judgements, or bad checks that are not a result of your credit application. 

If you pay your bills on time, you should not have the "not applied for" credit noted on your credit report.

The three credit agencies listed above will provide your credit report to the  AZ Refi lenders  in the form of a credit score.  If your score slips below a certain number, your loan options are limited. This credit score will determine the next step in your AZ Refinance.







 
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AZ Tip #3: Ask For a Discount

Simply asking the lenders to lower their fees or if they can give you a better rate will always get you a better package then if you just accept what is given.

Of course, this ties back in to AZ Refi Tip #1 which is the importance of shopping at least 3 separate lenders. Make sure you don't take the first price that they give to you. Always ask them to improve their rate, drop their fees, or both. You'll be pleased to see that more often than not they will respond. Afterall, they don't want to lose your home loan business. 

Individual loan officers do have a lot of lee-way over how much to charge. While the employer may have minimums and package requirements, since the loan officer is making a commission, they know where the wiggle room is.


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AZ Refi Tip #2: Continue To Monitor The Rates

Once you have locked in your AZ Refinance rate, continue to keep an eye on them.  Rates will often drop after you have already locked in your rate, but your lender will not usually offer to re-lock your loan.  Don't be afraid to ask, or to switch lenders if they say no.

Remember, rates fluctuate up and down all the time. Once you have locked in a rate, continue to watch the rates. Often the rates will drop after you have already locked in a rate, but they will not offer to re-lock your loan. Don't be afraid to switch lenders if they will not re-lock your loan.  Tell the new lender you are locked with the first lender and ask if they can better your AZ Home Loan rate.

Don't lock in a rate with a lender who charges you any fees at all to lock, there is much too much competition out there right now for you to have to do this, there's no reason to pay these fees.












 

AZ Refi Tip #1: Shop For Different Lenders

Tip #1: 

 The best thing you can do as you start the AZ Refinance process is to shop for different lenders.

Everyone knows this but few actually take the time to do it.  Almost everyone goes with the first person they are referred to or speak to.  Make a commitment to speak with at least three different lenders.



The payoff?  Better rates, fees, and terms.


Here's how you can do it.


1. Ask your friends and family for a direct referral...not just for a mortgage lender, but for someone that will work with you through the loan process.

2.  Call this referral and tell them who referred them to you.  Get pre-qualified, but do not pay any upfront fees.  Make sure you understand what your credit scores are.

3.  When you receive their ""Truth-In_Lending" and "Good Faith Estimate" you must readi it through.  and make sure it's what you expected.


Then go ahead and call at least two additional loan officers and have them give you a quote.   Go ahead an ttell them what your first quote included, and have them try to better it.  Don't be afraid to ask questions, and get the best rate that you can.


4.  Once you have all rates in, you will find that you usually have beat the first quote.  Bring this information back to the first loan officer and see what they can do.





 
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Checklist for your AZ Refi Process

Completing a loan application for your AZ Refi is the first thing you'll be asked to do when refinancing your home. You will also need to provide documentation to help your mortgage lender gain approval for your AZ Home Loan. The documentation requested will vary depending on who your work with, the refi option you go with, and your personal financial situation.

Following is a list of typical documents that are required during the application process. You may not need everything on this list, but for a fast and easy meeting with your mortgage lender, have these items available.

* Proof of income: In most cases each loan applicant will need to show your original pay stubs for the last 90 days.

* Homeowners Insurance: You will need to provide proof of your current homeowners insurance

* Copies of your W-2 forms: Each loan applicant needs to provide their W-2 forms for the last several years to verify both income and employment history.

* Copies of asset information: Including accounts holding money for closing costs, statements for savings, checking and 401K accounts and investment records for mutual funds or stocks.

* Copy of current home title insurance : Your mortgage lender will need this to verify title, taxes, and paperwork available on the property.

Keep in mind, the more information you have available, the less time it will take to finalize your AZ Home Loan.



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Why everyone is talking about AZ Refi!

It seems like you can't pick up a newspaper or turn on the local news without hearing people talking about AZ Refi.  You can chalk it up to a sign of the times, but the reality is that many homeowners in Arizona are looking closely at AZ Refinance options available to them.

Whether you are looking to save money on your monthly payments or avoid foreclosure,  there are many Arizona refinancing options now available to you. 

It's no surprise that in late March of 2010 President Obama put into place the aggressive AZ Refi options that banks will now be required to make available to AZ homeowners.  These new AZ  Home Loan modifications will be very valuable to any home owner on the edge of foreclosure.

Your best course of action is to do as much research as you can on how an AZ Refinance could help your individual situation.  Learn about all your options. Be informed before you meet with your AZ home loan specialist or investment advisor. 

Benefits of AZ Refinance

There are many benefits associated with re-financing a home in Arizona. While there are always situations where re-financing is not the right decision, there are a host of benefits that can be realized from a refi under the right conditions. These benefits include:

• Debt Consolidation
• Lower Monthly Payments
• Utilization of Existing Home Equity

Anyone considering a refi in AZ should consider each of these alternatives in conjunction with their financial adviser to help them make the best decision.

Lower Your Monthly Payments

The possibility of lower monthly mortgage payments is a very appealing benefit and driver of re-financing. Many homeowners are in the situation of living paycheck-to-paycheck and for these folks, finding any opportunity to save money can be a big breakthrough. Homeowners that are successful in negotiating lower interest rates when they re-fi their homes will most likely see the benefits of lower monthly mortgage payments.

Debt Consolidation

Many AZ homeowners are starting to look at refinancing solely for the purpose of debt consolidation. This is especially helpful for those homeowners with high interest credit card debts and the like. Such a debt consolidation loan allows the homeowner to use the existing home equity they've established as collateral to secure a lower interest loan. This loan is often large enough to repay the existing balance on their home as well as cover their credit card debts, car loans, or any other higher interest debt.

When re-financing is undertaken with the purpose of debt consolidation, there is not always an increase in savings. Those who are looking to consolidate their debts are too often also struggling with monthly payments and just getting buy. This is an option that makes it easier to manage monthly bills at a lower overall rate. By consolidating the debt in one place, it will be easier to pay your monthly bills.

Using the Existing Equity in Your

Another popular reason for re-financing in AZ right now is to leverage the existing equity in your home. Arizona homeowners who have a considerable amount of equity in their home may find they are able to cash out some of this equity for other purposes that are important to them. This could include home improvements, starting a business, continuing their education, or even taking a vacation. The Arizona homeowner is not limited in how they can use the equity in their home and may re-finance their home equity line of credit which can be used for any purpose they deem necessary.

A home equity line of credit is different from a loan because the funds are not disbursed all at once. Rather the funds are made available to the Arizona homeowner and the homeowner can withdraw these finds at anytime during the draw period.






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Are you considering refinancing in Arizona?

Are You Considering Re-Financing Your Home in Arizona?

Arizona Homeowners who are considering a re-finance have a wealth of alternative options available to them. However, these same homeowners may find themselves feeling overwhelmed by choice. This process doesn't have to be difficult. Arizona Homeowners can greatly assist themselves in the process by taking just a few simple steps. First, as a homeowner, you should determine your refi goals. Next, you should consult with a re-fi expert, and finally, you should be aware that re-fi is not always the best solution.

Determine What Your Goals are for Re-Financing

The first step in any re-financing process should be for you, as the homeowner, to determine your goals and why you are considering re-financing in the first place. There are many different answers to this question and none of the answers are necessarily right or wrong. The most important thing is that you, as the homeowner, is making a decision to meet your own financial goals.

Here are the most common reasons that homeowners are choosing to refinance:

• Reducing monthly mortgage payments
• Consolidating existing debts
• Reducing the amount of interest paid over the course of the loan
• Repaying the loan quicker
• Gaining equity quicker

While there are many more reasons to refinance, the reasons above are some of the most popular and common reasons. They are included here as a starting point. You might find one that resonates with you or they might get you thinking. It's important that you be clear in your goals before you talk to your financial adviser.

Consult with a Re-Financing Expert

Once you have figured out why you want to re-finance, you should consider meeting with a finance expert to determine the best refinancing strategy for you. It's critical to select an adviser with a depth of experience in the refi industry.

Homeowners who feel as though they are particularly well versed in the subject of re-financing might consider skipping the option of consulting with a re-financing expert. However, this is not recommended because even the most educated homeowner may not be aware of the newest re-financing options being offered by lenders. Forgive the pun, but the lending landscape is changing quickly, and you need an expert to help guide you through your choices.



Consider Not Re-Financing as a Viable Option

When you are considering re-financing you will also realize the importance of evaluating a number of different re-financing options to determine which option is best, but you should also consider not re-financing as a viable option. While it is often referred to as the "do nothing" option because it refers to the conditions which will exist if the homeowner does not make a change in their mortgage situation....it can be the best strategy for some.

For each re-fi option that is considered, you should really determine the following:

• Estimated monthly payment
• Amount of interest paid during the course of the loan
• Year in which the loan will be fully repaid
• Amount of time the homeowner will have to remain in the home to recoup closing costs associated with re-financing.
• Values of your current mortgage
  

All of the above will be very helpful for comparison purposes. Once you actually look at all the numbers your decision will be clearer.


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