Gina Myers

Pre-qualification is a determination of the loan amount you’re likely to receive. It is not a guarantee of approval. To obtain pre-qualification, you usually are interviewed by a licensed loan officer who determines the pre-qualification amount. You will be issued a letter with this information that you can present when making an offer on a home. It’s important to understand that pre-qualification does not imply any obligation from the lender that you will be approved. 

Pre-approval is more thorough than pre-qualification. To be pre-approved, you must submit an application and verify your credit and financial history. After you receive your pre-approval certificate, you’re in a stronger position to close earlier and negotiate a better price. It’s highly recommended that you seek pre-approval if you are shopping for a home. 

Pre-approval vs. pre-qualification

Location is key. Factors like crime rate, public school ratings, daily commute times to surrounding metropolitan areas, as well as the vicinity to local parks, libraries, swimming pools, sport arenas, churches, restaurants and shopping centers are essential in the price valuation of real estate. It’s best to consider the location as much as the condition of a home when you are looking to make a purchase.

How to find the right home

• Proof of income – Find and make copies of your pay stubs. 
• Tax information – Gather your W-2s, 1099s, and tax returns for the last 2 years. If you’re self-employed or an independent contractor, you’ll be required to provide your 1099-MISC information. 
• Credit details – We’ll perform a credit check when you apply. 
• Debt documentation – You’ll be required to provide documentation on your outstanding financial commitments. Gather materials on your current mortgage, car loans, student loans and any other debts. 

Points are prepaid interest that you can pay up front. You can pay points to get a lower rate on both fixed–rate and adjustable-rate mortgages, but the points charged to reduce the rate may vary depending on the type of loan. One point is equal to 1% of the mortgage amount. (Example: $100,000 mortgage amount = $1,000 point)

It depends on your particular situation. Three major factors should be considered when deciding whether to pay points: 

1. How much can you afford to pay upfront? 
2. How long do you expect to make payments on your mortgage? 
3. What is the length of your loan, and how long do you plan to live in the home? 

Many people looking for a long-term mortgage opt to pay points to ease their monthly payments. People looking at a mortgage with a shorter term or looking to stay in the home for a shorter period of time often opt to make a larger down payment instead of paying points. 

The mortgage interest rate isn’t always the most important factor in selecting a mortgage. You want to make sure you’re doing business with a reliable, reputable business. A trustworthy lender will be able to provide all of the details of your loan, including pre-approval, in writing. When shopping for a mortgage provider, don’t forget to ask friends and family members for recommendations. Although online reviews are available, they may not be as thorough as hearing feedback from the people you know. It’s also reasonable that if the people closest to you were happy with their experience, you will be, too. 

Also, make sure that you understand the full cost of the loan and that you feel comfortable with all of the terms. For instance, pre-payment penalties, a large down payment requirement, or larger monthly payments may cause the loan to be less than ideal — regardless of the interest rate. 

• Form 1003 — The residential loan application — including the attached Fair Lending notice, loan info sheet, and credit authorization. Note: Do not use whiteout on this paperwork. Mistakes should be crossed out and initialed. 
• Copies of W-2s or tax returns for the previous 2 years. 
• If you own rental units, provide the most recent rental agreement and tax returns for previous 2 years. 
• Your last 3 bank statements along with the most recent statements for any mutual funds, IRA/401(k), or stock accounts. 
• Settlement agreement and divorce decree (if applicable). 
• Letter explaining how you plan to utilize refinance proceeds if you’re seeking a cash-out refinance. 
• Non-U.S. citizens must present their Green Card or H-1 or L-1 visa. 
• If you’ve filed for bankruptcy, present a schedule of creditors, discharge notice, and filing. 
• If you’re applying for a second loan, include the first mortgage note. 
• These documents may not be all-inclusive, but by having these on hand, you will expedite the application. 

After selecting and applying for a loan, the approval process begins. For approval, we must verify your credit, employment history, assets, property value, and anything else required by your particular circumstances. 

FICO stands for Fair Isaac Corporation. This company is a pioneer and leader in credit scoring. Your FICO score is a number that tells creditors how likely you are to pay off your debts. 

FICO and the credit bureaus do not disclose their exact computation methods. However, most credit scores are calculated through models that assign points to different factors of your credit history to best predict future performance. There are many commonly analyzed factors in your credit history, including: 

• Payment history 
• Employment history 
• How long you have had credit 
• How much credit you have used compared to how much you have available 
• How long you’ve lived at your current residence 
• Negative credit/financial events such as collections, bankruptcies, charge-offs, etc. 

• Identifying information — Social Security number, date of birth, employment information (these facts are not determining factors in credit scoring) 

• A list of debts — how many credit lines have been opened and closed, types of credit lines, a history of how you’ve paid them, loan limits, and current balances 

• Public record information — bills referred to collection agencies, bankruptcies, foreclosures, suits, liens, etc. 

• Inquiries made about your creditworthiness during the last two years — voluntary and involuntary inquiries. 

Raising a credit score is not always easy and not something that can be done overnight. There are several credit best practices that will raise your rating over time: 

• Pay your bills on time. This is extremely important. Collections and late payments can lower your credit scores. 
• Reduce your credit balances. Maxed out credit cards will lower your credit score. 
• Don’t apply for credit often. This reflects poorly on you and your rating. 
• Establish credit history. 

What credit score is needed for a home loan?

Yes, errors and fraud should be reported to both the credit reporting agency that provided the report with the error or fraud, as well as the creditor that provided the erroneous or fraudulent information to the credit reporting agency. At this time, Experian and Equifax are only accepting disputes via their online forms. TransUnion handles disputes by phone, standard mail and an online form. We have provided you with information below to access these agencies per myFICO.com. 

• Equifax
• Experian
• TransUnion
  TransUnion Disputes
  2 Baldwin Place, P.O. BOX 1000
  Chester, PA 19022
  1-800-916-8800 

Although it may seem intuitive to move money around in accounts to show financial strength, this is actually not advisable. All facets of your income will be considered when applying for a loan. It’s best not to make any financial changes that could alter your eligibility, especially placing money from untraceable sources into your accounts. Additionally, don’t change your employment during the home loan process. Steady employment can be a factor in determining loan qualification. Lastly, large purchases such as cars, appliances or furniture can negatively impact the outcome of the loan. 

Interest rates change based on the demands of the market. When a high demand exists for loans, interest rates increase to take advantage of an active market. If demand for mortgages is low, interest rates decrease to entice new customers. 

Inflation also has a major impact on mortgage rates. Inflation is associated with a growing economy. As the economy grows, the prices for goods and services increase along with it. This price inflation affects real estate along with everything else, pushing up the price for mortgages. 

Lastly, the Federal Reserve has the ability to influence interest rates for the purpose of controlling inflation and employment. It can do this by raising or lowering the discount rate, and indirectly influencing the direction of the Federal funds rate. 

Mortgage interest rates

Just as the name suggests, this is a loan where you pay no points and no fees upfront. You pay a higher rate and the lender agrees to pay the upfront costs. This is a popular loan for first-time homebuyers with less cash who want to limit the upfront fees they pay. It’s also a popular loan for people looking to refinance. Since there are no fees, there’s no penalty for refinancing whenever interest rates drop, even if you refinance multiple times in a year. 

Zero-point/zero-fee loans are particularly useful for people who will not be spending a long time in their home. If you’re looking to move within five years, there’s little downside to this type of loan. However, if you stay in the home for the long term, you’ll eventually end up losing money by paying at a higher rate over a longer period of time. 

A mortgage rate lock is a promise to you from the lender to hold a specific combination of an interest rate and points for an agreed upon time (typically 10, 15, 30, 45 or 60 days) until you can close on your home. Locking in a rate protects you from unforeseen interest rate increases that can occur in the days or weeks leading up to closing, but conversely, if the rates fall, you may not be able to take advantage of the lower rates. 

Rate locks are dependent on the type of loan program, current interest rates, points, and the length of the lock. To hold a rate for longer periods of time, you usually have to agree to pay higher points or interest rates. 

Mortgage rate lock

Yes. An active secondary mortgage market exists in which lenders and investors buy and sell pools of mortgages. If another company purchases your mortgage, it assumes all terms and conditions. A new lender cannot change the rate, payments, or any other aspect of the agreement. You will only have to send payments to the new loan servicer. 

In this instance, you’re still obligated to make payments. Usually, a lender that goes out of business is forced to sell their mortgages to other lenders. The terms and conditions will not change, but you will have to send payments to the new loan servicer. 

Private mortgage insurance (PMI) protects the lender from the costs of foreclosure. You may be obligated to purchase PMI if you can’t make a sufficient down payment of at least 20%. By purchasing PMI, you will have access to a mortgage without having to make a large down payment, and the lender is insured in the event that you default on the loan. 

The price of PMI is inversely proportional to the size of your down payment. The larger your down payment, the lower the cost of PMI will be. 

Talk to your loan officer before making a large purchase. Moving money around in your accounts or increasing your debt-to-income ratio could affect your loan. 

Talk to your loan officer if there is going to be a change in your employment. It’s best to have steady employment for at least 2 years and verifiable income when applying for a loan. 

Inspections are important to understand the condition of the home. They can also be helpful when it comes time to negotiate with the sellers, in terms of lowering the price of the home, or adding service stipulations to the contract. 

Refinancing costs typically range from 2% to 6% of the loan amount and include fees such as appraisal, title insurance, and closing costs. Factors like your loan type, location, and credit score can significantly impact these expenses. Our team can help to provide strategies that can help minimize costs.

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To determine how much home you can afford, you’ll want to assess your financial situation. This includes your income, expenses, and debt-to-income ratio, to ensure your mortgage fits comfortably within your budget. A general guideline is to spend no more than 28% of your gross monthly income on housing costs and 36% on total debt.

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A good credit score typically starts at 620 for conventional loans, while FHA and VA loans may accept scores as low as 500, though higher scores offer better terms. A strong credit score can help you secure lower interest rates, saving you significant money over the life of a home loan.

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A Home Equity Line of Credit (HELOC) is a revolving line of credit that allows homeowners to borrow against the equity in their home. HELOCs function like a credit card, giving access to funds up to a set limit, which can be used for expenses like renovations or debt consolidation. You only pay interest on the amount you borrow, and the repayment terms typically include a draw period followed by a repayment period.

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To calculate your mortgage payments, start with your loan amount, interest rate, and loan term. Your payment will depend on the interest charged over time and the repayment schedule. You can use a monthly mortgage payment calculator or connect with us to learn more.

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An appraisal is an unbiased third-party assessment of a home’s current market value. In a real estate transaction, an appraiser completes an inspection of the home, and the lender and borrower are provided with a copy of the appraisal report to document the appraiser’s opinion of value.

The appraiser will determine the value of a property based on several factors, including the following:

• Market research performed
• Results of their onsite inspection
• Property specific amenities and characteristics
• Overall property condition and quality
• Comparison of similar properties that have recently sold

Typically, mortgage transactions require an appraisal, as the value of the home is a key element of the mortgage loan process. However, some circumstances do allow for other value assessment options that your Loan Officer will discuss with you if they are available.

Both are intended to evaluate a property’s condition. However, an appraisal provides an opinion of value, while a home inspection does not.

While the appraised value can fluctuate based on market conditions, the home inspection is focused on the home’s structural integrity and overall condition.

During a purchase transaction, the buyer has the option to elect for a home inspection to be performed.

• Ensure your home is free from health hazards and safety violations
• Curb appeal is key, and first impressions of the home’s exterior can make a difference so make sure your yard is neat and well-kept.
• Inside the home, be sure to declutter and clean up all areas of the home. Remove visible dirt and messes from floors, sinks, toilets, and showers/tubs. Life can get messy as we all know, but when it’s picture day for your home it’s best to give it the best appearance possible.
• Make minor repairs when possible. Even small repairs can make a big difference. Leaky faucets, small holes in the wall and pet damage can all contribute to the overall condition of the home.
• Document all recent improvements made to your home and be ready to answer any questions from the appraiser regarding the date, cost, materials, etc.
• To avoid revisit fees, ensure the appraiser will be able to access all areas of your home during the inspection including attics and crawl spaces, as well as utilities like electricity, plumbing, and heat.

No. On a purchase transaction, the appraiser will contact the seller or realtor to coordinate access to the home for the appraisal inspection.

The value of your home directly impacts your Loan to Value (LTV) ratio. LTV is calculated by dividing the loan amount by the appraised value. For example, if you borrow $80,000 on a home valued at $100,000 your LTV is 80%. LTV is considered when determining factors such as your loan approval, loan program, interest rate, and mortgage insurance requirements.

On a purchase transaction the Loan to Value (LTV) ratio is calculated by dividing the loan amount by the lower of either the purchase price or the appraised value.

• If the appraised value is higher than the purchase price, it means you’ve agreed to pay the seller less than the home’s current market value. Your LTV is calculated by dividing the loan amount by the purchase price. For example, if you borrow $80,000 on a home with a purchase price of $100,000 your LTV is 80%.
• If the appraised value is less than the purchase price, it means the price of the home is more than the home’s current market value. In this scenario, the LTV is calculated by dividing the loan amount by the appraised value. In this example, if you borrow $80,000 on a home with a purchase price of $100,000 but the appraised value is determined to be $90,000, your LTV is 88.88%. This increase in the LTV can impact factors such as your loan approval, loan program, interest rate, and monthly mortgage insurance requirements.

Note: There are options to consider when the appraised value of the home is less than the purchase price. Your loan officer will discuss available options which can include restructuring your loan by increasing the loan amount or the amount of down payment. Or you can consider negotiating with the seller to lower the purchase price to be in alignment with the appraised value. Be sure to review your purchase agreement for any clauses or stipulations related to the appraised value of the home.

If you do not agree with the value or the information contained in the appraisal report, you have the option to submit a Customer Appraisal Dispute Request Form. Below are examples of dispute requests that can be submitted for review.

• Reconsideration of Value Request – If it is determined that there is market evidence that supports a higher value, this information can be submitted to the appraiser for consideration. An example of market evidence is a recent sale, like the subject property, in the same or a nearby competing market area.
• Error Corrections Request – If it is determined that the appraisal report contains errors or omissions, the errors or omissions can be submitted to the appraiser for review and correction.
• Second Appraisal Request – If it is determined that the appraisal report is deficient, a new report can be considered.

For additional information on submitting a Customer Appraisal Dispute Request Form, please refer to the Appraiser Independence and What do I need to know when completing the Customer Appraisal Dispute Request Form? FAQs below.

When completing the Customer Appraisal Dispute Request Form it is important to explain your concerns with as much detail as possible and provide supporting documentation when it is available.

• Be sure to complete all fields in the Contact Information section, a CCM Representative will get in contact with you.
• Explain the reason for your request, including as much detail as possible.
• If you are disputing the appraised value, you can provide up to 5 comparable sales. The sales should be recent sales that were not included on the appraisal report, and should be like the subject property in size, condition, and location.
  • Size – Additional sales you provide should be close in size to the subject property. It is important to note that only square footage completely above grade is considered. Basements, whether they are finished or unfinished, cannot be included in the square footage.
  • Condition – Additional sales you provide should be in the same or similar condition to the subject property.
  • Location – Additional sales you provide should be in the same market area, or a nearby competing market area.
• How to Initiate the Customer Appraisal Dispute Process
  • Option 1: Discuss the appraisal with your Loan Originator. After your discussion, they can submit these corrections on your behalf.
  • Option 2: Directly make an inquiry by emailing [email protected].
  • Option 3: Directly make an inquiry by calling 866-306-2804, Option 0.

Thank you for choosing CrossCountry Mortgage, LLC for your home loan needs.

We are committed to maintaining appraiser independence and preventing attempts to influence appraisers in the preparation of appraisal reports, as well as avoiding any discrimination or bias in the appraisal process.

While reviewing your appraisal, if you see inaccuracies that could impact the value of your home, have knowledge of better comparable properties, suspect an attempt to influence the appraiser in the preparation of the appraisal, or have concerns of discrimination or bias, we strongly encourage you to utilize the Customer Appraisal Dispute Process detailed below. During the escalation process, you may be asked to complete the Customer Appraisal Dispute Request Form, which will initiate one of the following when completed:

• Reconsideration of Value Request (“ROV”) – If it is determined that there is market evidence that supports a higher value, this information can be submitted to the appraiser for consideration. An example of market evidence is a recent sale, like the subject property, in the same or a nearby competing market area.
• Error Corrections Request – If it is determined that the appraisal report contains errors or omissions, the errors or omissions can be submitted to the appraiser for review and correction.
• Second Appraisal Request – If it is determined that the appraisal report is deficient, a new report may be considered.

How to Initiate the Customer Appraisal Dispute Process

• Option 1: Discuss the appraisal with your Loan Originator.  After your discussion, they can submit these corrections on your behalf.
• Option 2: Directly make an inquiry by emailing [email protected].
• Option 3: Directly make an inquiry by calling 866-306-2804, Option 0.
• Option 4: Self-initiate the inquiry by visiting the Company’s website at www.CCM.com, then navigating to Resource Center, selecting the FAQ’s drop-down, and clicking Appraisal FAQ’s. Select the What are my options if I disagree with information in the appraisal?, which will provide specific direction regarding initiating the Customer Appraisal Dispute Process. Be sure to click the link for the Customer Appraisal Dispute Request Form, which provides further direction on completing and submitting the Form.

Information Required for the Customer Appraisal Dispute Request Form

• Borrower Name
• Subject Property Address
• Effective Date of the Appraisal
• Appraiser Name
• Date of the ROV Request
• Identification and description of unsupported, inaccurate, or deficient areas in the appraisal report
• Additional data, information, and comparable properties (not to exceed five), and the related data sources (for example, the MLS listing number)
• An explanation of why the new data supports the ROV

Important Information about the Customer Appraisal Dispute Process

• Only one borrower-initiated Reconsideration of Value is permitted per appraisal.
• Upon receipt of the Customer Appraisal Dispute Request Form, CrossCountry Mortgage, LLC will review the Form for completeness/accuracy. If the Form is completed appropriately with all required information and valid new comparables, as applicable, the request will be delivered to the appraiser for their review.
• Generally, the time from CrossCountry Mortgage, LLC receipt of a complete Customer Appraisal Dispute Request Form to the appraiser final response is expected to be 2-3 business days.
• The appraiser will respond to the request within the body of the appraisal report, which will be delivered to you using the same means the original report was delivered.

If you have any other questions regarding the appraisal process, you can always discuss them with your Loan Originator.

A refinance is a new loan that replaces an existing mortgage — typically to get more favorable terms or payment options. Let’s say you purchased a home with a 30-year fixed rate mortgage at an interest rate of 4.75%. A few years later, you notice that interest rates are hovering around 4.25%. While that 0.5% difference might not seem like much, it can add up to a significant amount of money over the life of your loan.* 

Refinance Guide

Refinance example:

The calculation above assumes annual amortization. This calculation is provided as an illustration to demonstrate potential savings. It is not intended to provide investment advice, nor is it a guarantee of applicability or accuracy in regard to your personalized circumstances. Not all borrowers will qualify for the rates listed above. This is not a loan approval. Estimated monthly payment does not include homeowners insurance or taxes. Actual payment will be higher. Annual Percentage Rate (APR) incorporates fees into a single rate so that it is possible to compare loans with different rates, fees or terms. Please seek advice from a licensed loan officer to see if refinancing may be right for you.

*Refinancing may result in higher total finance charges over the life of the loan.

Refinancing is a common solution for homeowners who want to lower their interest rates, adjust the length of their mortgages, change the type of their mortgages, or use their existing home equity to fund a large expense, like a renovation or home repairs, through a cash-out refinance. 

You’ll be replacing your current loan with a new one, so it’s important that you have a specific goal when considering refinancing. 

The process for refinancing your home will likely be similar to the steps you went through to get your current loan. CrossCountry Mortgage, Inc., doing business in the State of New York as CrossCountry Financing, will look at your income, credit score and the value of your property. If refinancing your home sounds like something that fits with your homeownership goals, then finding the right type of loan is the next step. 

After selecting and applying for a loan, the approval process begins. For approval, we must verify your credit, employment history, assets, property value, and anything else required by your particular circumstances. Some programs use information you provided when you first got your mortgage, which helps to streamline the process. 

CrossCountry Mortgage, doing business in the State of New York as CrossCountry Financing, offers a variety of refinance loans depending on your situation, financial goals and current mortgage. Here are some programs we have to offer: 

• Conventional Refinance Loans
• VA Interest Rate Reduction Refinance Loan
• FHA 203(k) Refinance
• FHA Streamline Refinance
• USDA Rural Streamline Refinance

Refinance loan types

It depends on your particular situation. Three major factors should be considered when deciding whether to pay points:  

• How much can you afford to pay up front? 
• How long do you expect to make payments on your mortgage? 
• What is the length of your loan and how long do you plan to live in the home? 

Many people looking for a long-term mortgage opt to pay points to ease the monthly payments over the long term of the loan. People looking at a mortgage with a shorter term or looking to stay in the home for a shorter period of time often opt to make a larger down payment instead of paying points. 

You can refinance your home for a number of reasons, most of which typically result in a more favorable financial situation. Some of the benefits of refinancing include: 

• Lower your monthly payments: By obtaining a lower interest rate, you may lower your monthly payment – keeping more money in your pocket. Refinancing can reduce your monthly payment initially, but that doesn’t always mean it will save you money in the long run. Fees and interest rates need to be considered when calculating if your new mortgage will save you money over the entire life of the loan. A licensed loan officer will be able to help you decide if refinancing is right for you. We’ll help you calculate at which point you will break even and begin to save. 
• Shorten your loan term: Maybe you’re making more money now than you were when you first got your mortgage and can afford to put more money toward it. By shortening your loan term, you’ll pay off your mortgage sooner. Short term means you’ll pay less interest over the life of your loan. An example would be refinancing a 30-year mortgage into a 20-year or 15-year mortgage. 

Refinance example:

• The calculation above assumes annual amortization. This calculation is provided as an illustration to demonstrate potential savings. It is not intended to provide investment advice, nor is it a guarantee of applicability or accuracy in regard to your personalized circumstances. Not all borrowers will qualify for the rates listed above. This is not a loan approval. Estimated monthly payment does not include homeowners insurance or taxes. Actual payment will be higher. Annual Percentage Rate (APR) incorporates fees into a single rate so that it is possible to compare loans with different rates, fees or terms. Please seek advice from a licensed loan officer to see if refinancing may be right for you.
• Extend your loan term: Maybe you want a lower monthly payment and are willing to extend your mortgage out several years to get it. It’s important to understand that you’ll pay more over the long term in interest, but you’ll have a lower payment each month.
• Get cash out: As you pay on your mortgage, you build equity. Eventually, you can refinance through certain programs to get access to funds from that equity. These funds can be used in a variety of ways, such as paying bills, making a special purchase, improving or repairing your home or paying for college tuition.
• Stabilize an underwater mortgage: As a result of the 2008 financial crisis, many homeowners watched their home values plummet below the outstanding balance on their mortgages. With a HARP refinance, you can refinance an underwater mortgage and regain control.

• Copies of W-2s or tax returns for the previous 2 years 
• If you own rental units, provide the most recent rental agreement and tax returns for previous 2 years 
• Your last 3 bank statements along with the most recent statements for any mutual funds, IRA/401(k), or stock accounts 
• Settlement agreement and divorce decree (if applicable). 
• Non-U.S. citizens must present their Green Card or H-1 or L-1 visa. 
• Recent paycheck stubs and proof of any other income, like tips, Social Security payments 
• Your current mortgage note 

These documents may not be all-inclusive, but by having these on hand, you will expedite the application. 

• Proof of Income – Find and make copies of your pay stubs. 
• Tax Information – Gather your W-2s, 1099s, and tax returns for the last 2 years. If you’re self-employed or an independent contractor, you’ll be required to provide your 1099-MISC information. 
• Credit Details – We’ll perform a credit check when you apply. 
• Debt Documentation – You’ll be required to provide documentation on your outstanding financial commitments. Gather materials on your current mortgage, car loans, student loans and any other debts. 

Points are prepaid interest that you can pay up front. You can pay points to get a lower rate on both fixed rate and adjustable–rate mortgages, but the points charged to reduce the rate may vary depending on the type of loan. One point is equal to 1% of the mortgage amount. (Example: $100,000 mortgage amount = $1,000 point) 

It depends on your particular situation. Three major factors should be considered when deciding whether to pay points: 

1. How much can you afford to pay upfront? 
2. How long do you expect to make payments on your mortgage? 
3. What is the length of your loan, and how long do you plan to live in the home? 

Many people looking for a long-term mortgage opt to pay points to ease their monthly payments. People looking at a mortgage with a shorter term or looking to stay in the home for a shorter period of time often opt to make a larger down payment instead of paying points. 

FICO and the credit bureaus do not disclose their exact computation methods. However, most credit scores are calculated through models that assign points to different factors of your credit history to best predict future performance. There are many commonly analyzed factors in your credit history, including: 

• Payment history 
• Employment history 
• How long you have had credit 
• How much credit you have used compared to how much you have available 
• How long you’ve lived at your current residence 
• Negative credit/financial events such as collections, bankruptcies, charge-offs, etc. 

Raising a credit score is not always easy and not something that can be done overnight. There are several credit best practices that will raise your rating over time: 

• Pay your bills on time. This is extremely important. Collections and late payments can lower your credit scores. 
• Reduce your credit balances. Maxed out credit cards will lower your credit score. 
• Don’t apply for credit often. This reflects poorly on you and your rating. 
• Establish credit history. 

Yes, errors and fraud should be reported to both the credit reporting agency that provided the report with the error or fraud, as well as the creditor that provided the erroneous or fraudulent information to the credit reporting agency. At this time, Experian and Equifax are only accepting disputes via their online forms. TransUnion handles disputes by phone, standard mail and an online form. We have provided you with information below to access these agencies per myFICO.com. 

• Equifax
• Experian
• TransUnion
  TransUnion Disputes
  2 Baldwin Place, P.O. BOX 1000
  Chester, PA 19022
  1-800-916-8800 

• Identifying information — Social Security number, date of birth, employment information (these facts are not determining factors in credit scoring) 
• A list of debts — how many credit lines have been opened and closed, types of credit lines, a history of how you’ve paid them, loan limits, and current balances 
• Public record information — bills referred to collection agencies, bankruptcies, foreclosures, suits, liens, etc. 
• Inquiries made about your creditworthiness during the last two years — voluntary and involuntary inquiries. 

Interest rates change based on the demands of the market. When a high demand exists for loans, interest rates increase to take advantage of an active market. If demand for mortgages is low, interest rates decrease to entice new customers.  

Inflation also has a major impact on mortgage rates. Inflation is associated with a growing economy. As the economy grows, the prices for goods and services increase along with it. This price inflation affects real estate along with everything else, pushing up the price for mortgages. 

Lastly, the Federal Reserve has the ability to influence interest rates for the purpose of controlling inflation and employment. It can do this by raising or lowering the discount rate, and indirectly influencing the direction of the Federal funds rate. 

Refinance interest rates

Pre-qualification is a determination of the loan amount you’re likely to receive. It is not a guarantee of approval. To obtain pre-qualification, you usually are interviewed by a licensed loan officer who determines the pre-qualification amount. You will be issued a letter with this information that you can present when making an offer on a home. It’s important to understand that pre-qualification does not imply any obligation from the lender that you will be approved. 

Pre-approval is more thorough than pre-qualification. To be pre-approved, you must submit an application and verify your credit and financial history. After you receive your pre-approval certificate, you’re in a stronger position to close earlier and negotiate a better price. It’s highly recommended that you seek pre-approval if you are shopping for a home. 

Pre-approval vs. pre-qualification

A mortgage rate lock is a promise to you from the lender to hold a specific combination of an interest rate and points for an agreed upon time (typically 10, 15, 30, 45 or 60 days) until you can close on your home. Locking in a rate protects you from unforeseen interest rate increases that can occur in the days or weeks leading up to closing, but conversely, if the rates fall, you may not be able to take advantage of the lower rates. 

Rate locks are dependent on the type of loan program, current interest rates, points, and the length of the lock. To hold a rate for longer periods of time, you usually have to agree to pay higher points or interest rates. 

Mortgage rate lock

Yes. An active secondary mortgage market exists in which lenders and investors buy and sell pools of mortgages. If another company purchases your mortgage, it assumes all terms and conditions. A new lender cannot change the rate, payments, or any other aspect of the agreement. You will only have to send payments to the new loan servicer. 

In this instance, you’re still obligated to make payments. Usually, a lender that goes out of business is forced to sell their mortgages to other lenders. The terms and conditions will not change, but you will have to send payments to the new loan servicer. 

Private mortgage insurance (PMI) protects the lender from the costs of foreclosure. You may be obligated to purchase PMI if you can’t make a sufficient down payment of at least 20%. By purchasing PMI, you will have access to a mortgage without having to make a large down payment, and the lender is insured in the event that you default on the loan. 

The price of PMI is inversely proportional to the size of your down payment. The larger your down payment, the lower the cost of PMI will be. 

Talk to your loan officer before making a large purchase. Moving money around in your accounts or increasing your debt–to–income ratio could affect your loan. 

Talk to your loan officer if there is going to be a change in your employment. It’s best to have steady employment for at least 2 years and verifiable income when applying for a loan. 

Inspections are important to understand the condition of the home. They can also be helpful when it comes time to negotiate with the sellers, in terms of lowering the price of the home, or adding service stipulations to the contract. 

A refinance is a new loan that replaces an existing mortgage — typically to get more favorable terms or payment options. Let’s say you purchased a home with a 30-year fixed rate mortgage at an interest rate of 4.75%. A few years later, you notice that interest rates are hovering around 4.25%. While that 0.5% difference might not seem like much, it can add up to a significant amount of money over the life of your loan.* 

Refinance Guide

Refinance example:

The calculation above assumes annual amortization. This calculation is provided as an illustration to demonstrate potential savings. It is not intended to provide investment advice, nor is it a guarantee of applicability or accuracy in regard to your personalized circumstances. Not all borrowers will qualify for the rates listed above. This is not a loan approval. Estimated monthly payment does not include homeowners insurance or taxes. Actual payment will be higher. Annual Percentage Rate (APR) incorporates fees into a single rate so that it is possible to compare loans with different rates, fees or terms. Please seek advice from a licensed loan officer to see if refinancing may be right for you.

*Refinancing may result in higher total finance charges over the life of the loan.

Refinancing is a common solution for homeowners who want to lower their interest rates, adjust the length of their mortgages, change the type of their mortgages, or use their existing home equity to fund a large expense, like a renovation or home repairs, through a cash-out refinance. 

You’ll be replacing your current loan with a new one, so it’s important that you have a specific goal when considering refinancing. 

The process for refinancing your home will likely be similar to the steps you went through to get your current loan. CrossCountry Mortgage, Inc., doing business in the State of New York as CrossCountry Financing, will look at your income, credit score and the value of your property. If refinancing your home sounds like something that fits with your homeownership goals, then finding the right type of loan is the next step. 

After selecting and applying for a loan, the approval process begins. For approval, we must verify your credit, employment history, assets, property value, and anything else required by your particular circumstances. Some programs use information you provided when you first got your mortgage, which helps to streamline the process. 

CrossCountry Mortgage, doing business in the State of New York as CrossCountry Financing, offers a variety of refinance loans depending on your situation, financial goals and current mortgage. Here are some programs we have to offer: 

• Conventional Refinance Loans
• VA Interest Rate Reduction Refinance Loan
• FHA 203(k) Refinance
• FHA Streamline Refinance
• USDA Rural Streamline Refinance

Refinance loan types

It depends on your particular situation. Three major factors should be considered when deciding whether to pay points:  

• How much can you afford to pay up front? 
• How long do you expect to make payments on your mortgage? 
• What is the length of your loan and how long do you plan to live in the home? 

Many people looking for a long-term mortgage opt to pay points to ease the monthly payments over the long term of the loan. People looking at a mortgage with a shorter term or looking to stay in the home for a shorter period of time often opt to make a larger down payment instead of paying points. 

You can refinance your home for a number of reasons, most of which typically result in a more favorable financial situation. Some of the benefits of refinancing include: 

• Lower your monthly payments: By obtaining a lower interest rate, you may lower your monthly payment – keeping more money in your pocket. Refinancing can reduce your monthly payment initially, but that doesn’t always mean it will save you money in the long run. Fees and interest rates need to be considered when calculating if your new mortgage will save you money over the entire life of the loan. A licensed loan officer will be able to help you decide if refinancing is right for you. We’ll help you calculate at which point you will break even and begin to save. 
• Shorten your loan term: Maybe you’re making more money now than you were when you first got your mortgage and can afford to put more money toward it. By shortening your loan term, you’ll pay off your mortgage sooner. Short term means you’ll pay less interest over the life of your loan. An example would be refinancing a 30-year mortgage into a 20-year or 15-year mortgage. 

Refinance example:

• The calculation above assumes annual amortization. This calculation is provided as an illustration to demonstrate potential savings. It is not intended to provide investment advice, nor is it a guarantee of applicability or accuracy in regard to your personalized circumstances. Not all borrowers will qualify for the rates listed above. This is not a loan approval. Estimated monthly payment does not include homeowners insurance or taxes. Actual payment will be higher. Annual Percentage Rate (APR) incorporates fees into a single rate so that it is possible to compare loans with different rates, fees or terms. Please seek advice from a licensed loan officer to see if refinancing may be right for you.
• Extend your loan term: Maybe you want a lower monthly payment and are willing to extend your mortgage out several years to get it. It’s important to understand that you’ll pay more over the long term in interest, but you’ll have a lower payment each month.
• Get cash out: As you pay on your mortgage, you build equity. Eventually, you can refinance through certain programs to get access to funds from that equity. These funds can be used in a variety of ways, such as paying bills, making a special purchase, improving or repairing your home or paying for college tuition.
• Stabilize an underwater mortgage: As a result of the 2008 financial crisis, many homeowners watched their home values plummet below the outstanding balance on their mortgages. With a HARP refinance, you can refinance an underwater mortgage and regain control.

• Copies of W-2s or tax returns for the previous 2 years 
• If you own rental units, provide the most recent rental agreement and tax returns for previous 2 years 
• Your last 3 bank statements along with the most recent statements for any mutual funds, IRA/401(k), or stock accounts 
• Settlement agreement and divorce decree (if applicable). 
• Non-U.S. citizens must present their Green Card or H-1 or L-1 visa. 
• Recent paycheck stubs and proof of any other income, like tips, Social Security payments 
• Your current mortgage note 

These documents may not be all-inclusive, but by having these on hand, you will expedite the application. 

• Proof of Income – Find and make copies of your pay stubs. 
• Tax Information – Gather your W-2s, 1099s, and tax returns for the last 2 years. If you’re self-employed or an independent contractor, you’ll be required to provide your 1099-MISC information. 
• Credit Details – We’ll perform a credit check when you apply. 
• Debt Documentation – You’ll be required to provide documentation on your outstanding financial commitments. Gather materials on your current mortgage, car loans, student loans and any other debts. 

Points are prepaid interest that you can pay up front. You can pay points to get a lower rate on both fixed rate and adjustable–rate mortgages, but the points charged to reduce the rate may vary depending on the type of loan. One point is equal to 1% of the mortgage amount. (Example: $100,000 mortgage amount = $1,000 point) 

It depends on your particular situation. Three major factors should be considered when deciding whether to pay points: 

1. How much can you afford to pay upfront? 
2. How long do you expect to make payments on your mortgage? 
3. What is the length of your loan, and how long do you plan to live in the home? 

Many people looking for a long-term mortgage opt to pay points to ease their monthly payments. People looking at a mortgage with a shorter term or looking to stay in the home for a shorter period of time often opt to make a larger down payment instead of paying points. 

FICO and the credit bureaus do not disclose their exact computation methods. However, most credit scores are calculated through models that assign points to different factors of your credit history to best predict future performance. There are many commonly analyzed factors in your credit history, including: 

• Payment history 
• Employment history 
• How long you have had credit 
• How much credit you have used compared to how much you have available 
• How long you’ve lived at your current residence 
• Negative credit/financial events such as collections, bankruptcies, charge-offs, etc. 

Raising a credit score is not always easy and not something that can be done overnight. There are several credit best practices that will raise your rating over time: 

• Pay your bills on time. This is extremely important. Collections and late payments can lower your credit scores. 
• Reduce your credit balances. Maxed out credit cards will lower your credit score. 
• Don’t apply for credit often. This reflects poorly on you and your rating. 
• Establish credit history. 

Yes, errors and fraud should be reported to both the credit reporting agency that provided the report with the error or fraud, as well as the creditor that provided the erroneous or fraudulent information to the credit reporting agency. At this time, Experian and Equifax are only accepting disputes via their online forms. TransUnion handles disputes by phone, standard mail and an online form. We have provided you with information below to access these agencies per myFICO.com. 

• Equifax
• Experian
• TransUnion
  TransUnion Disputes
  2 Baldwin Place, P.O. BOX 1000
  Chester, PA 19022
  1-800-916-8800 

• Identifying information — Social Security number, date of birth, employment information (these facts are not determining factors in credit scoring) 
• A list of debts — how many credit lines have been opened and closed, types of credit lines, a history of how you’ve paid them, loan limits, and current balances 
• Public record information — bills referred to collection agencies, bankruptcies, foreclosures, suits, liens, etc. 
• Inquiries made about your creditworthiness during the last two years — voluntary and involuntary inquiries. 

Interest rates change based on the demands of the market. When a high demand exists for loans, interest rates increase to take advantage of an active market. If demand for mortgages is low, interest rates decrease to entice new customers.  

Inflation also has a major impact on mortgage rates. Inflation is associated with a growing economy. As the economy grows, the prices for goods and services increase along with it. This price inflation affects real estate along with everything else, pushing up the price for mortgages. 

Lastly, the Federal Reserve has the ability to influence interest rates for the purpose of controlling inflation and employment. It can do this by raising or lowering the discount rate, and indirectly influencing the direction of the Federal funds rate. 

Refinance interest rates

Pre-qualification is a determination of the loan amount you’re likely to receive. It is not a guarantee of approval. To obtain pre-qualification, you usually are interviewed by a licensed loan officer who determines the pre-qualification amount. You will be issued a letter with this information that you can present when making an offer on a home. It’s important to understand that pre-qualification does not imply any obligation from the lender that you will be approved. 

Pre-approval is more thorough than pre-qualification. To be pre-approved, you must submit an application and verify your credit and financial history. After you receive your pre-approval certificate, you’re in a stronger position to close earlier and negotiate a better price. It’s highly recommended that you seek pre-approval if you are shopping for a home. 

Pre-approval vs. pre-qualification

A mortgage rate lock is a promise to you from the lender to hold a specific combination of an interest rate and points for an agreed upon time (typically 10, 15, 30, 45 or 60 days) until you can close on your home. Locking in a rate protects you from unforeseen interest rate increases that can occur in the days or weeks leading up to closing, but conversely, if the rates fall, you may not be able to take advantage of the lower rates. 

Rate locks are dependent on the type of loan program, current interest rates, points, and the length of the lock. To hold a rate for longer periods of time, you usually have to agree to pay higher points or interest rates. 

Mortgage rate lock

Yes. An active secondary mortgage market exists in which lenders and investors buy and sell pools of mortgages. If another company purchases your mortgage, it assumes all terms and conditions. A new lender cannot change the rate, payments, or any other aspect of the agreement. You will only have to send payments to the new loan servicer. 

In this instance, you’re still obligated to make payments. Usually, a lender that goes out of business is forced to sell their mortgages to other lenders. The terms and conditions will not change, but you will have to send payments to the new loan servicer. 

Private mortgage insurance (PMI) protects the lender from the costs of foreclosure. You may be obligated to purchase PMI if you can’t make a sufficient down payment of at least 20%. By purchasing PMI, you will have access to a mortgage without having to make a large down payment, and the lender is insured in the event that you default on the loan. 

The price of PMI is inversely proportional to the size of your down payment. The larger your down payment, the lower the cost of PMI will be. 

Talk to your loan officer before making a large purchase. Moving money around in your accounts or increasing your debt–to–income ratio could affect your loan. 

Talk to your loan officer if there is going to be a change in your employment. It’s best to have steady employment for at least 2 years and verifiable income when applying for a loan. 

Inspections are important to understand the condition of the home. They can also be helpful when it comes time to negotiate with the sellers, in terms of lowering the price of the home, or adding service stipulations to the contract. 

Pre-qualification is a determination of the loan amount you’re likely to receive. It is not a guarantee of approval. To obtain pre-qualification, you usually are interviewed by a licensed loan officer who determines the pre-qualification amount. You will be issued a letter with this information that you can present when making an offer on a home. It’s important to understand that pre-qualification does not imply any obligation from the lender that you will be approved. 

Pre-approval is more thorough than pre-qualification. To be pre-approved, you must submit an application and verify your credit and financial history. After you receive your pre-approval certificate, you’re in a stronger position to close earlier and negotiate a better price. It’s highly recommended that you seek pre-approval if you are shopping for a home. 

Pre-approval vs. pre-qualification

Location is key. Factors like crime rate, public school ratings, daily commute times to surrounding metropolitan areas, as well as the vicinity to local parks, libraries, swimming pools, sport arenas, churches, restaurants and shopping centers are essential in the price valuation of real estate. It’s best to consider the location as much as the condition of a home when you are looking to make a purchase.

How to find the right home

• Proof of income – Find and make copies of your pay stubs. 
• Tax information – Gather your W-2s, 1099s, and tax returns for the last 2 years. If you’re self-employed or an independent contractor, you’ll be required to provide your 1099-MISC information. 
• Credit details – We’ll perform a credit check when you apply. 
• Debt documentation – You’ll be required to provide documentation on your outstanding financial commitments. Gather materials on your current mortgage, car loans, student loans and any other debts. 

Points are prepaid interest that you can pay up front. You can pay points to get a lower rate on both fixed–rate and adjustable-rate mortgages, but the points charged to reduce the rate may vary depending on the type of loan. One point is equal to 1% of the mortgage amount. (Example: $100,000 mortgage amount = $1,000 point)

It depends on your particular situation. Three major factors should be considered when deciding whether to pay points: 

1. How much can you afford to pay upfront? 
2. How long do you expect to make payments on your mortgage? 
3. What is the length of your loan, and how long do you plan to live in the home? 

Many people looking for a long-term mortgage opt to pay points to ease their monthly payments. People looking at a mortgage with a shorter term or looking to stay in the home for a shorter period of time often opt to make a larger down payment instead of paying points. 

The mortgage interest rate isn’t always the most important factor in selecting a mortgage. You want to make sure you’re doing business with a reliable, reputable business. A trustworthy lender will be able to provide all of the details of your loan, including pre-approval, in writing. When shopping for a mortgage provider, don’t forget to ask friends and family members for recommendations. Although online reviews are available, they may not be as thorough as hearing feedback from the people you know. It’s also reasonable that if the people closest to you were happy with their experience, you will be, too. 

Also, make sure that you understand the full cost of the loan and that you feel comfortable with all of the terms. For instance, pre-payment penalties, a large down payment requirement, or larger monthly payments may cause the loan to be less than ideal — regardless of the interest rate. 

• Form 1003 — The residential loan application — including the attached Fair Lending notice, loan info sheet, and credit authorization. Note: Do not use whiteout on this paperwork. Mistakes should be crossed out and initialed. 
• Copies of W-2s or tax returns for the previous 2 years. 
• If you own rental units, provide the most recent rental agreement and tax returns for previous 2 years. 
• Your last 3 bank statements along with the most recent statements for any mutual funds, IRA/401(k), or stock accounts. 
• Settlement agreement and divorce decree (if applicable). 
• Letter explaining how you plan to utilize refinance proceeds if you’re seeking a cash-out refinance. 
• Non-U.S. citizens must present their Green Card or H-1 or L-1 visa. 
• If you’ve filed for bankruptcy, present a schedule of creditors, discharge notice, and filing. 
• If you’re applying for a second loan, include the first mortgage note. 
• These documents may not be all-inclusive, but by having these on hand, you will expedite the application. 

After selecting and applying for a loan, the approval process begins. For approval, we must verify your credit, employment history, assets, property value, and anything else required by your particular circumstances. 

FICO stands for Fair Isaac Corporation. This company is a pioneer and leader in credit scoring. Your FICO score is a number that tells creditors how likely you are to pay off your debts. 

FICO and the credit bureaus do not disclose their exact computation methods. However, most credit scores are calculated through models that assign points to different factors of your credit history to best predict future performance. There are many commonly analyzed factors in your credit history, including: 

• Payment history 
• Employment history 
• How long you have had credit 
• How much credit you have used compared to how much you have available 
• How long you’ve lived at your current residence 
• Negative credit/financial events such as collections, bankruptcies, charge-offs, etc. 

• Identifying information — Social Security number, date of birth, employment information (these facts are not determining factors in credit scoring) 

• A list of debts — how many credit lines have been opened and closed, types of credit lines, a history of how you’ve paid them, loan limits, and current balances 

• Public record information — bills referred to collection agencies, bankruptcies, foreclosures, suits, liens, etc. 

• Inquiries made about your creditworthiness during the last two years — voluntary and involuntary inquiries. 

Raising a credit score is not always easy and not something that can be done overnight. There are several credit best practices that will raise your rating over time: 

• Pay your bills on time. This is extremely important. Collections and late payments can lower your credit scores. 
• Reduce your credit balances. Maxed out credit cards will lower your credit score. 
• Don’t apply for credit often. This reflects poorly on you and your rating. 
• Establish credit history. 

What credit score is needed for a home loan?

Yes, errors and fraud should be reported to both the credit reporting agency that provided the report with the error or fraud, as well as the creditor that provided the erroneous or fraudulent information to the credit reporting agency. At this time, Experian and Equifax are only accepting disputes via their online forms. TransUnion handles disputes by phone, standard mail and an online form. We have provided you with information below to access these agencies per myFICO.com. 

• Equifax
• Experian
• TransUnion
  TransUnion Disputes
  2 Baldwin Place, P.O. BOX 1000
  Chester, PA 19022
  1-800-916-8800 

Although it may seem intuitive to move money around in accounts to show financial strength, this is actually not advisable. All facets of your income will be considered when applying for a loan. It’s best not to make any financial changes that could alter your eligibility, especially placing money from untraceable sources into your accounts. Additionally, don’t change your employment during the home loan process. Steady employment can be a factor in determining loan qualification. Lastly, large purchases such as cars, appliances or furniture can negatively impact the outcome of the loan. 

Interest rates change based on the demands of the market. When a high demand exists for loans, interest rates increase to take advantage of an active market. If demand for mortgages is low, interest rates decrease to entice new customers. 

Inflation also has a major impact on mortgage rates. Inflation is associated with a growing economy. As the economy grows, the prices for goods and services increase along with it. This price inflation affects real estate along with everything else, pushing up the price for mortgages. 

Lastly, the Federal Reserve has the ability to influence interest rates for the purpose of controlling inflation and employment. It can do this by raising or lowering the discount rate, and indirectly influencing the direction of the Federal funds rate. 

Mortgage interest rates

Just as the name suggests, this is a loan where you pay no points and no fees upfront. You pay a higher rate and the lender agrees to pay the upfront costs. This is a popular loan for first-time homebuyers with less cash who want to limit the upfront fees they pay. It’s also a popular loan for people looking to refinance. Since there are no fees, there’s no penalty for refinancing whenever interest rates drop, even if you refinance multiple times in a year. 

Zero-point/zero-fee loans are particularly useful for people who will not be spending a long time in their home. If you’re looking to move within five years, there’s little downside to this type of loan. However, if you stay in the home for the long term, you’ll eventually end up losing money by paying at a higher rate over a longer period of time. 

A mortgage rate lock is a promise to you from the lender to hold a specific combination of an interest rate and points for an agreed upon time (typically 10, 15, 30, 45 or 60 days) until you can close on your home. Locking in a rate protects you from unforeseen interest rate increases that can occur in the days or weeks leading up to closing, but conversely, if the rates fall, you may not be able to take advantage of the lower rates. 

Rate locks are dependent on the type of loan program, current interest rates, points, and the length of the lock. To hold a rate for longer periods of time, you usually have to agree to pay higher points or interest rates. 

Mortgage rate lock

Yes. An active secondary mortgage market exists in which lenders and investors buy and sell pools of mortgages. If another company purchases your mortgage, it assumes all terms and conditions. A new lender cannot change the rate, payments, or any other aspect of the agreement. You will only have to send payments to the new loan servicer. 

In this instance, you’re still obligated to make payments. Usually, a lender that goes out of business is forced to sell their mortgages to other lenders. The terms and conditions will not change, but you will have to send payments to the new loan servicer. 

Private mortgage insurance (PMI) protects the lender from the costs of foreclosure. You may be obligated to purchase PMI if you can’t make a sufficient down payment of at least 20%. By purchasing PMI, you will have access to a mortgage without having to make a large down payment, and the lender is insured in the event that you default on the loan. 

The price of PMI is inversely proportional to the size of your down payment. The larger your down payment, the lower the cost of PMI will be. 

Talk to your loan officer before making a large purchase. Moving money around in your accounts or increasing your debt-to-income ratio could affect your loan. 

Talk to your loan officer if there is going to be a change in your employment. It’s best to have steady employment for at least 2 years and verifiable income when applying for a loan. 

Inspections are important to understand the condition of the home. They can also be helpful when it comes time to negotiate with the sellers, in terms of lowering the price of the home, or adding service stipulations to the contract.