| One of the most common things I hear when a | | | | a bigger house. So not only are you moving to |
| prospective client contacts us for a mortgage | | | | a higher balance, but your now derogatory |
| refinance is "I just missed a mortgage | | | | mortgage credit will force you into a high |
| payment and I want to refinance before it's | | | | rate. If you need the cash to pay off bills |
| too late". When I ask them about their | | | | and improve your credit urgently, or to |
| credit, most of them reply "Oh I pay | | | | purchase a home in a new area because you are |
| everything on time, I just got behind this | | | | relocating for work, you can wind up in a |
| one month on the mortgage". | | | | horrible Catch 22, very often disqualified |
| | | | for financing entirely, or with financing so |
| It breaks my heart to tell them that in many | | | | unaffordable that you would rather not. |
| cases, it already is too late. The reason is | | | | |
| simple if you really think about it: If your | | | | So what can you do about this? If you do |
| home is your biggest investment, your | | | | better with automatic payments, sign up for |
| greatest potential asset and your largest | | | | direct debit payment with your lender, or |
| current liability, there is nothing more | | | | arrange for your bank to automatically pay |
| important than showing that you are able to | | | | your mortgage every month on a specific date |
| make the payment on it every month. If you | | | | which far enough ahead of the due dates for |
| are in a cash crunch, you're better off | | | | your other bills that you won't be tempted to |
| missing or underpaying almost any other | | | | pay something else. The day after payday is a |
| payment, such as a credit card bill, even | | | | great day to do it. And the date should be |
| your utility bill, instead of missing or even | | | | far enough ahead of your due date that the |
| delaying your mortgage payment, because | | | | bill is paid and posted on time. It might |
| missing one mortgage payment can cost you | | | | hurt that first month, but it will even out |
| tens of thousands of dollars over the years. | | | | once you get used to the new schedule. |
| | | | |
| When you miss a mortgage payment, your credit | | | | And if you are even thinking that you might |
| score may not go down dramatically. But your | | | | miss a mortgage payment, call up a loan |
| mortgage credit quality will take a serious | | | | officer, and not one who works for your |
| beating, and you'll carry it around for | | | | current lender, and get refinanced today. Not |
| years. When you start out with a mortgage, | | | | only will this put a little extra cash in |
| regardless of what your FICO credit score is, | | | | your pocket and help you pay off your other |
| you are rated an "A", meaning you make your | | | | bills, but it will usually allow you to go a |
| mortgage payments on time. If you miss a | | | | few extra weeks without making another |
| payment, and even if you're just late enough | | | | payment out of pocket. In fact, for qualified |
| to qualify as 30 days late, the lateness is | | | | borrowers, we even have Zero Payment & |
| recorded and you will become an "A-" or a | | | | Zero Interest for 90 Day loans which are |
| "B". Just one mortgage lateness can keep you | | | | perfect for people who are at risk of missing |
| out of the refinance market for up to two | | | | their next payment. Because there are no |
| years by automatically locking you out of the | | | | payments for up to 90 days, this is a very |
| lowest payment programs such as Option ARMs | | | | popular product amongst our customers. Option |
| or low-rate fixed mortgages, and you can | | | | ARMs and Fixed-Rate Option ARMs (Hybrids) are |
| forget about stated income programs, you will | | | | also excellent products for people who are |
| now have to prove where every penny comes | | | | having trouble making ends meet temporarily, |
| from and you'll need more of them too. If it | | | | but expect to get back on their feet within a |
| sounds a bit like high school, it is, but | | | | few month sor a few years, respectively. |
| this time its for keeps. Keep missing or | | | | Loans generally take 15 days to close, so you |
| delaying payments, and you'll quickly see | | | | really need to think ahead a little bit, |
| your mortgage quality decline to a "C" or | | | | which is hard for all of us. But instead of |
| "D", which could prevent you from refinancing | | | | freezing up, or scrambling around looking for |
| entirely by eliminating your eligibility from | | | | money, call up an experienced professional |
| even standard rate programs. I have seen | | | | and get out of that jam before you get into |
| customers who started out at 6% wind up at | | | | trouble. You're better off dealing with the |
| 10% or more solely because they chose making | | | | issue in the present instead of regretting |
| payments on cars or credit cards over making | | | | the past. And no matter what, make sure you |
| their mortgage payment on time. | | | | satisfy your mortgage payment obligation. |
| | | | Everything else on your credit report can be |
| This hurts the most when you refinance or are | | | | repaired, negotiated, but not your mortgage |
| ready to buy a new house, because you are | | | | lates. Don't wind up in a situation like many |
| usually borrowing more money than you were | | | | of my callers are in, ready to dance but too |
| previously, either to pay off bills or make | | | | late to the party, plan ahead and as always, |
| home improvements, or because you're getting | | | | protect your financial future today! |