7 key steps to finding the right home loan
News from Daily Breeze:

Mortgage rates have plunged to record lows, below 4 percent. That’s great – but only if you can actually qualify for a loan, and that’s not easy. After giving away the store during the housing boom with disastrous results, lenders have tightened their underwriting standards, leaving many would-be home buyers out of luck.

But there are steps homebuyers can take to find the right mortgage, and qualify for it. Here are seven:

Improve your credit score

A credit score below 620, as measured by the Minneapolis company FICO, will knock most potential buyers out of the running for a mortgage. And even if you can qualify for a loan, lenders reserve their best interest rates for borrowers with the highest credit scores – typically 740 and above. If a bad credit score pushes up your interest rate by even one percentage point, you could end up paying $ 85,000 more over the life of a $ 400,000 loan, according to Tracy Becker, president of North Shore Advisory, a credit repair company in New York state.

To see where you stand, start by c…………… continues on Daily Breeze

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Related News:

Will a Settled Car Loan Help My Credit Score?
News from Fox Business:

Dear Driving for Dollars,
If I pay a settlement amount on my car loan and they mark “settled” on my credit, will it help my credit score?
— Trish

Dear Trish,
Settling a car loan debt, when you and the lender agree on a lower balance than your original loan and make the loan paid in full, will lower your credit score compared to paying the car loan on time. I’m guessing that you are asking if settling will help your score because you are already experiencing damaged credit due to late payments or missing them entirely.

The more late payments or missed payments you have, the more your credit score will decline. As a result, if you are unable to make the payments per the original terms of your car loan, then settling the debt sooner rather than later would help your credit score in the sense that it would have a smaller drop than if you continued to miss payments.

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Bankrate’s content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice…………… continues on Fox Business

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