A Qualified Mortgage Consultant Can Help Boost Credit Scores

Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are taken into consideration by the lender, as well as the predictability factor provided by credit scoring. It's important to have a mortgage professional in your corner that has a keen eye for solutions to improving credit scores in an effort to get the best interest rate possible.

Interest rates associated with various loan programs are broken down into schedules based on credit score ratings. While each lender has its own guidelines, it's safe to assume that as the consumer's credit score goes down, interest rates will go up.

A borrower with an outstanding credit rating will get what is called an A-paper loan. This type of borrower is rewarded with a lower interest rate because they have a proven track record of using credit sensibly and paying their bills on time.

Loans designed for consumers with less-than-perfect credit ? sometimes referred to as "sub-prime" ? can range anywhere from A-minus, B-paper, C-paper or D-paper loans.

If you have already taken out a mortgage loan with a higher interest rate because your credit score was a little under par, you will really appreciate the value in doing a little work to improve your credit score. Refinancing from a D-paper loan to a B-paper classification can save literally thousands of dollars in financing fees over time, even though the B-paper loan is still considered sub-prime.

A qualified mortgage consultant will guide you through the nuances of the process of improving your credit score to refinance and save money. First and foremost, he or she will want to review the terms of the existing mortgage loan to determine if you have a pre-payment penalty clause written into your contract. In general terms, that means that if you sell the home or try to refinance before the pre-payment penalty expires and you have not already paid off 20 percent of the original loan amount, you will most likely have to pay a 3 percent fee back to the lender to compensate for the high risk and high costs incurred to provide that financing.

Next, you should obtain free copies of your credit reports from www.annualcreditreport.com and start working on improving the credit score six months prior to the expiration date on your existing pre-payment penalty.

There are five factors that make up the credit score and your mortgage consultant can coach you through some basic strategies to improve your credit score. This means very conservative use of credit cards, paying off debt as much as possible and not applying for additional credit cards unless you will benefit from such action. You will want to verify that negative items you have paid off are being removed from your credit report, and that good credit history is being reported to all three bureaus. You'll also want to dispute any errors that appear on your credit reports and seek to have those removed entirely.

Once your credit score improves, it's time to refinance at a better interest rate. Your mortgage professional should look for a program that carries no more than a two-year prepayment penalty so you can continue to refinance as your credit score increases. You can repeat this process until you reach A-paper status and secure the best interest rate available.

This is a strategy that also works well for first time home buyers who do not have enough credit history under their belt to get an A-paper loan at the time of purchase. The important thing is to work with a mortgage consultant who can give you a roadmap to follow and a strategy for success in building personal wealth.

Mical Johnson is affiliated with Rock Financial, Inc., a Licensed Correspondent Mortgage Lender, Florida Department of Finance. Mr. Johnson hosts Home Buyer's Seminars which are open to the public each month in the TampaBay area in Florida. Seating is limited. To reserve your seat at the next event, call 813-833-2568 to RSVP and obtain a free copy of Mr. Johnson's Home Buyer Handbook. You can also contact him at http://www.TampaMortgageGuy.com He is also a contributing author at http://www.Debt-Free-Personal-Finance.com

---

Google News Updated : Sun, 12 Oct 2008 11:51:06 GMT ARM Holders Would Do Well to Shop Around Now - Washington Post Sify ARM Holders Would Do Well to Shop Around Now Washington Post - 4 hours ago By Nancy Trejos The global financial crisis has affected virtually every aspect of personal finance, from mortgages to student loans to credit cards to retirement savings. Finance giants reportedly ordered to buy $40 bln of mortgage bonds ... MarketWatch Fannie, Freddie to Buy $40 Billion a Month of Troubled Assets Bloomberg The Miami Herald - Orlando Sentinel - Sunday Paper - San Jose Mercury News all 227 news articles Publ.Date : Sun, 12 Oct 2008 07:07:17 GMT Theatrical Review of Body of Lies - DVDTOWN.com Theatrical Review of Body of Lies DVDTOWN.com - 11 hours ago By Jason P. Vargo "Body of Lies" is a certain type of movie designed for a certain type of moviegoer. I think the tagline describes the movie perfectly, actually. Will 'Chihuahua' take a bite out of 'Body of Lies'? Los Angeles Times Body of Lies Entertainment Weekly E! Online - San Francisco Chronicle - Reuters - Washington Post all 1,041 news articles Publ.Date : Sun, 12 Oct 2008 00:19:39 GMT Many homers, and pitches, in Game 2 - MLB.com Los Angeles Times Many homers, and pitches, in Game 2 MLB.com - 2 hours ago By Bryan Hoch / MLB.com ST. PETERSBURG -- Five hours and 27 minutes elapsed during Saturday's American League Championship Series Game 2, bookending the moments when Scott Kazmir threw the game's first pitch over home plate and BJ Upton popped its ... Up, up, and away Boston Globe Mike Timlin shoulders blame Boston Herald Los Angeles Times - Washington Times - Tampa Tribune - ESPN all 495 news articles Publ.Date : Sun, 12 Oct 2008 09:22:57 GMT Japan says will tap FX reserve if IMF steps up bailout - Reuters Voice of America Japan says will tap FX reserve if IMF steps up bailout Reuters - 6 hours ago WASHINGTON, Oct 11 (Reuters) - Japan said on Saturday it is ready to offer a part of its $1 trillion foreign reserves to the International Monetary Fund (IMF) if the multi-national lender is to support countries facing economic crisis. Video: IMF: Timing right for G7 ReutersVideo IMF Calls for Aggressive Response to Crisis New York Times Bloomberg - MarketWatch - Financial Times - Voice of America all 2,310 news articles Publ.Date : Sun, 12 Oct 2008 05:32:02 GMT Van driver's work in Mass. aided Nobel winners - Boston Globe Boston Globe Van driver's work in Mass. aided Nobel winners Boston Globe - 7 hours ago HUNTSVILLE, Ala.—When two American scientists won a Nobel Prize this week in chemistry, the driver of a car dealership's courtesy van had reason to take special interest. Video: Nobel Chemistry Prize Goes for Jellyfish Protein AssociatedPress The Daily Yomiuri - The Associated Press - Ars Technica - New York Times all 1,253 news articles Publ.Date : Sun, 12 Oct 2008 04:14:18 GMT American space tourist blasts off in Soyuz rocket - The Associated Press Washington Post American space tourist blasts off in Soyuz rocket The Associated Press - 39 minutes ago BAIKONUR, Kazakhstan (AP) - A Soyuz spacecraft with two Americans and a Russian on board lifted off from Kazakhstan on Sunday for the international space station. Space Toilet Fixed – For Now eFluxMedia Russia launches spacecraft with sixth space tourist China Daily KGAN - MarketWatch - Spaceflight Now - USA Today all 615 news articles Publ.Date : Sun, 12 Oct 2008 11:11:37 GMT McCain campaign's tone likened to George Wallace's - Newsday Malaysia Star McCain campaign's tone likened to George Wallace's Newsday - 2 hours ago WASHINGTON - Rep. John Lewis, a Georgia Democrat and veteran of the civil rights movement, says the negative tone of the Republican presidential campaign reminds him of the hateful atmosphere segregationist Gov. McCain in 'hatred' war of words BBC News Obama thanks, jabs at McCain Chicago Tribune New York Times - Los Angeles Times - Reuters - AFP all 404 news articles Publ.Date : Sun, 12 Oct 2008 09:27:11 GMT RSS For Web Pages Website Traffic Promotion

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

2nd Mortgage Loan After Bankruptcy - Get Approved Online

A 2nd mortgage loan after a bankruptcy is possible in... Read More

Using a Mortgage Refinance Company Online

Online mortgage companies make refinancing convenient and competitive. By researching... Read More

How Much Home Loan Can I Afford?

Have you ever asked yourself how much home loan can... Read More

Getting a Home Improvement Loan: What Your Bank Needs

The popularity of stores like Home Depot and Lowe's show... Read More

Reverse Mortgage Maximization

Have your home's appreciation grow twice as fast.For Seniors over... Read More

2nd Mortgage - Better Than Refinancing

You have probably received refinancing offers in the mail or... Read More

Internet & Mortgage Calculations

"You've been approved!" The words you have always wanted to... Read More

Comparing The True Cost Of Obtaining A Home Loan

Home buyers are often confused about where to begin in... Read More

What Length Mortgage Is Right For You?

You've found the home that is right for you, and... Read More

Before You Buy

Before you start looking for a home, figure out what... Read More

Bad Credit Loans Authenticate What Is Positive About Bad Credit

This might not be the front page news but it... Read More

5 Things In Selecting The Best Mortgage - You Should Know

Your goal is not only to find the best rates... Read More

A New Choice for Home Financing: Correspondent Lenders

When you begin your search for a new home loan,... Read More

Fixed Rate Mortgage Loans - Understand the Pros and Cons of the Fixed Rate Mortgage

There are many benefits and drawbacks to consider when deciding... Read More

Bad Credit Home Financing - Buy a House Even With Poor Credit

Sub prime lenders come in two groups: reasonable and unreasonable.... Read More

Home Equity Loan Considerations

In other words, the benefit of the loan must outlast... Read More

What is a Homeowner Loan?

If you are a homeowner, it couldn't be easier to... Read More

Essence of Self Certified Mortgages

Your search for a mortgage isn't leading results.Check for any... Read More

Home Loan Confusion Continues

Unfortunately, most Americans still do not understand how home loans... Read More

Kings Bay Saint Marys & Kingsland Georgia - Affordable Home Mortgages

Buying a home is usually the largest purchase any of... Read More

10 Questions To Ask Your Mortgage Rep or Banke

This post is a must read for anyone considering purchasing... Read More

Secured Lending - a Guide to Releasing the Value in Your Home

The recent boom in house price values have made some... Read More

Types of Home Equity Loans

There are at least two types of home equity loans.The... Read More

Option One Mortgage Loans ? Getting an Option ARM or Option One Mortgage Loan

Have you heard about or been interested in finding out... Read More

Should You Refinance?

There are several reasons that might make someone consider refinancing... Read More