Thinking of Buying or Refinancing?

Julie Donatoni, President Acclaro Mortgage.

Julie Donatoni, President Acclaro Mortgage.

If you’re buying or refinancing a home, here are a few helpful tips to remember when applying for a mortgage.
Whether you’re buying or refinancing, your credit score and loan amount are extremely important to today’s mortgage lenders. Strong scores (720+) will be offered the lowest mortgage rates, as will loan amounts of $417,000 or less. If your loan is over $625,500, it will be a “Jumbo,” and rates will be considerably higher.

Buying
The more money you put down, the lower your mortgage rate. Expect to put at least 3.5% of the sales price down plus closing costs, and if you’re purchasing a bank-owned home or a short sale, be aware that closings can take anywhere from 60 to 180 days. Buy your home before December 2009 to take advantage of the Federal First Time Homebuyer (up to $8,000) and California New Home (up to $10,000) tax credits!

Refinancing
Your new rate will be determined by your credit score and your home’s value. The more equity you have in your home, the better your rate. Keep in mind that most lenders will require at least 10% equity to refinance. Make sure to get a Good Faith Estimate (GFE) from each lender for easy comparison, and to determine if it makes sense to refinance your home.

Acclaro Mortgage is an independent, full-service real estate firm that can help you into an easy, low-rate, low-cost home loan. Need more information? Call (818) 508-8200 or visit our Web site www.AcclaroMortgage.com.

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