Frequently Asked Questions
What kind of things can affect my credit score?
Credit scoring is based on an equation that takes into account the ratio of balances to limits on credit cards, the length of time you have had credit, late payments, collections, judgments, bankruptcies, number of credit inquiries and more. The rule of thumb is to maintain at least three open trade lines (usually credit cards or loans), keep your balances on all credit cards at 30% or less of your available credit, and never, ever make a late payment on anything.
Can I still get a loan if I have bad credit?
Obtaining a loan if your have bad credit is still possible. These loans are typically called "subprime" loans and involve higher rates and prepayment penalties.
What types are loans are best for people who run their own business?
Borrowers who are self-employed tend to reflect less income on their taxes due to standard deductions and business write-offs. Often times, self-employed borrowers qualify for loans requiring lower documentation based on high credit scores.
What kind of information should I have ready to apply for a loan?
When you apply for a loan, it's always a good idea to bring along your two most recent pay stubs, the last two years of your personal tax return and confirm your liquid assets.
What types of loans should I be wary of?
No loan is a bad loan if it is explained properly to the borrower. We always encourage our clients to be wary of phone and mail solicitations that make promises that are "too good to be true."
What happens if my loan gets sold?
If your loan is sold you should always receive a "hello" letter from your new lender and a "goodbye" letter from your old lender.
What can I do to avoid mortgage insurance and other extra costs?
Many borrowers opt for a second mortgage rather than mortgage insurance. However, mortgage insurance can make sense in certain circumstances so always be open to options. We provide our clients with every option available as well as a Good Faith Estimate that breaks down all costs associated with the loan.
How long does it take to process a loan?
On average a loan shouldn't take longer than 30 days to close, provided that the borrower has all necessary documentation available at the time of loan application.
