FAQ

1) What is a Short Refi and how can I qualify?

If you are currently upside-down (owe more on your home that its current market value) on your home, your bank may be willing to assist in allowing you to get a new loan for less than the amount you currently owe. Banks are often willing to consider this route if they feel that the risk of foreclosure is high and do not wish to go through a long, expensive foreclosure process. Your current bank, however, is NOT obligated to participate. We do have a loan modification and short refi program. With a free consultation, we will find the best approach for your current situation.

2) What is PMI?

PMI is Private Mortgage Insurance. This is required when a home's loan-to-value is over 80%. PMI typically amounts to about one-half of one percent of your mortgage amount annually and is based on your loan-to-value ratio, loan type, and loan term.

3) How much harder is it to qualify now than before the housing/financial crisis?

Underwriters are much more careful when evaluating loan applications. If you have had steady employment and consistently had good credit, then you have little to worry about. On the other hand, if you are self-employed, show little income on you taxes, and have less than good credit, obtaining a loan is more difficult than in the past. No documentation and stated income loans are becoming a thing of the past.

4) What do you recommend if I plan on buying a house in the future that I can't qualify for today?

Well, saving for a down payment is an important first step. The next step is paying attention to your credit reports. We recommend that you obtain a copy of you credit report every year. There are three main credit rating agencies (CRA): Equifax (www.equifax.com), Experian (www.experian.com), and TransUnion (www.tuc.com). Go to these websites to get a free credit report from each agency. They will not give you your actual credit score, but you will be informed about any negative claims on your credit.

5) What do I do if I don't agree with a claim on my credit report?

If you disagree with something on your credit report, you can write a letter to any of the three agencies to dispute any claim. If possible, include documents as an attachment to support your claim.

The Fair Credit Reporting Act (FCRA) requires that all CRA's investigate the items in question. If you win your claim, the CRA that your dispute was sent to must notify the other CRA's. The CRA must then send you a new credit report along with the notification of the changes.