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Many of our clients share common concerns and ask many of the same questions. It's our hope
that by outlining some of the more frequently asked questions, we can help you understand the often complex and
confusing world of Mortgage Lending and Real Estate.
At Sun Pacific Mortgage, it is our sincere hope that you will allow us to help guide your through the process of
acquiring the loan that is just right for you.
If you have questions you don't see here, please contact us through our web site, email us at
forest@sunpacmortgage.com, or call us at: 707-523-2099.
Frequently Asked Questions
Does poor credit preclude getting a home loan?
I'm behind on taxes. Can I refinance my troubles away?
How does filing Bankruptcy affect my home?
How do I repair my credit?
What is a FICO Score?
What is pre-qualifying?
Does pre-qualifying mean I am pre approved? |
 Does poor credit preclude getting a home loan?
A poor credit history, while unfortunate, does not eliminate obtaining a mortgage loan. What it does impact is
the rate that you are going to pay, the cost of the loan and the amount of equity that you will have to have in
the property (or down payment).
Poor credit will also impact the type of loan you are going to get. Generally speaking, the 30 year fixed rate
loans that you commonly hear advertised are reserved for those with near perfect credit buying or refinancing a
common type home. If your credit is less than perfect, you may opt for a variation of the fixed rate programs or
an adjustable rate mortgage.
It just depends. A few credit blemishes might simply mean that you would have to get an adjustable rate mortgage
with options for paying as if it were fixed.
If your credit is really bad, you might have to go with an interest only type program.
If you have had credit problems, be prepared to discuss them honestly with your mortgage lender. Responsible mortgage
lenders know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial
difficulties. If you had a problem that's been corrected, and your payments have been on time, your credit will
probably be considered satisfactory.
Also, what you interpret to be a credit challenge and what lending institutions consider derogatory may be two
completely different interpretations.
At Sun Pacific Mortgage we specialize in assisting those individuals with less than perfect credit. Whether it's
a matter of negotiating with your creditors or simply including a letter of explanation, your loan professional
in most cases can advice you on the best approach and help you get the house of your dreams!
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I'm behind on taxes. Can I refinance my troubles away?
Yes you can! Being delinquent on your property taxes is not like being delinquent on a credit card payment or a
mortgage. Being delinquent on property taxes usually does not affect your credit, unless the state or federal government
has attached a lien against you or your property. There are some lenders who view it as derogatory credit but most
do not.
Many homeowners across the United States use mortgage professionals to refinance or get a 2nd deed of trust to
pay off their taxes. The worst thing you can do is avoid the situation, continue to accrue interest and penalties,
(none of which are tax deductible) and possibly allow the government to eventually take your property away.
The time to act is right now! Sun Pacific Mortgage specializes in assisting those individuals with less than perfect
credit. Whether it's a matter of negotiating with your creditors or simply including a letter of explanation in
your loan file, a loan professional in most cases can advise you on the best approach and help you get and/or keep
the your dream home.
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How does filing Bankruptcy affect my home?
The answer to this question can only truly be answered by a legal professional per your specific circumstances.
The answer to this FAQ is not intended to replace the advice of a legal professional. However, the federal bankruptcy
laws across the United States are favorable to the homeowner.
Bankruptcy laws are primarily designed to address the issue of unsecured debt. Your home is a secured debt.
The bad news about bankruptcy is that in many circumstances filing the bankruptcy will only make the situation
worse. The lender's recourse is only stalled while the bankruptcy is open. Once the bankruptcy is discharged, the
payments that have been accruing once again are due, plus late charges if applicable. Your credit record now contains
this major blemish.
If you are in a situation where you are not able to meet your monthly obligations, you should sit down with a qualified
lending professional. Hopefully, you can do this before the situation gets out of hand - for instance, before the
lender on your home loan files a Notice of Default starting the foreclosure process.
Sun Pacific Mortgage specializes in assisting those individuals confronted with this situation. Your loan professional
in most cases can advice you on the best approach and help you with your specific loan requirements.
Sun Pacific Mortgage networks with legal related professionals should they not be able to assist you. The goal
of this response is to provide you with a possible alternative to filing a bankruptcy. We have been able to assist
many homeowners with "...refinancing their troubles away!"
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How do I repair my credit?
Mortgage professionals are generally not qualified to advice you on correcting your credit. A legal professional
or someone specializing in that field should handle this. A mortgage professional can sit down with you and determine
whether you need to correct your credit or not. Many times, due to common last names, or an error of one number
on a social security number, credit files can be merged inaccurately.
A poor credit history, while unfortunate, does not eliminate obtaining a mortgage loan. If you have had credit
problems, be prepared to discuss them honestly with your mortgage lender.
Responsible mortgage lenders know there can be legitimate reasons for credit problems, such as unemployment, illness
or other financial difficulties. If you had a problem that's been corrected, and your payments have been on time,
your credit will probably be considered satisfactory.
Also, what you interpret to be a credit challenge and what lending institutions consider derogatory may be two
completely different interpretations.
The actual repair of inaccuracies on a credit report is quite simple. Get whatever verifies the inaccuracy and
mail a copy of it to the various credit reporting agencies. They must, by law, act upon it within a certain time
frame. Follow up with them, getting them to send you a copy of the corrected report each time.
THE GOOD NEWS!
Sun Pacific Mortgage CAN DO THAT LOAN! Regardless of your credit profile, there is a home loan for everyone.
Sun Pacific Mortgage specializes in assisting those individuals with less than perfect credit. Sun Pacific Mortgage
can advise you on the best approach and help you get the home of your dreams! Call and find out!
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What is a FICO Score?
FICO is a credit scoring program developed by Fair, Isaac Company thus the term FICO. The scores are numeric representations
of your credit profile. They are based on years of computer modeling aimed at predicting the credit risk of a borrower.
These have been around for several years, but started to be used in the mortgage lending business in 1995 for the
purpose of keeping down the expense associated with Home Equity loans. Their purpose is to reduce the cost of examining
a credit report and speed mortgage approvals. The higher the FICO score the better credit risk you are.
You needed a certain minimum score to get such a loan. In 1996 both Freddie Mac (FHLMC - Federal Home Loan Mortgage
Corporation) and Fannie Mae (FNMA - Federal National Mortgage Association) started to use FICO scoring. They have
certain minimum qualifying scores. Recently, lenders other than FNMA and FHLMC have started using FICO's.
If you cannot qualify for a FNMA or FHLMC loan, there are many other programs available. Finally, there are lenders
who have not yet begun using FICO. They use the older and more traditional method of credit review.
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What is pre-qualifying?
Your FICO score can be determined during the process of becoming pre-qualified and allowing a qualified mortgage
professional to review your credit. Pre-qualifying is a process whereby a loan officer obtains information about
you, either over the telephone or face-to-face and indicates the loan amount you can qualify for and the best type
of loan to meet your particular needs. The loan officer will want to know information about your income and a list
of your debts.
The lender will be able, through a series of calculations, to determine the size of a loan you qualify for, based
upon loans available in today¹s market. The term pre-qualified simply means that a mortgage professional has
examined all facets of your profile as a buyer and determined that you can qualify for a particular program.
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Does pre-qualifying mean I am pre approved?
No, Prequalifying does not mean being pre-approved. Pre-approval is a step beyond pre-qualifying.
In a pre-approval we send the credit part of the loan package to the lender and get you approved for a certain
type of loan with a particular lender, before you have found or made an offer on a property.
Pre-approved means that a mortgage or real estate professional has examined, submitted and received acceptance
on your financial capabilities of qualifying for a mortgage based upon your debt to income ratio, credit profile
and loan information.
Get Pre-qualified with Sun Pacific Mortgage - TODAY! We can advise you on the best approach and help you with your
specific loan requirements, especially if you've been... ..."TURNED DOWN ELSEWHERE" |
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