Get your credit score up!

Maybe your credit isn’t so good, or maybe it is okay, but you’d like to make it better so you pay less interest on your modular home construction loan!  First check your credit score, which can range from 300 to 850, and aim for a score higher than 760 - you can do this at <a href="http://www.myfico.com">www.myfico.com</a> .  OR, got to any of the three major reporting companies for a free report every 12 months - go to <a href="http://www.annualcreditreport.com.">www.annualcreditreport.com.</a><br/><br/>Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to reduce losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue.<br/><br/>So, with a view to getting your credit score up, here are a few things to keep in mind.<br/><br/>1. Get a credit card if you don’t already have one.  Using a credit card or two can help to build your score. (Caution, do not apply for too many cards at once.)<br/><br/>2. Get an installment loan too.  Student loans, personal loans, mortgages and auto loans all help show you are responsible with credit.  Again, pay these off ON TIME!<br/><br/>3. Pay down your credit cards. Lenders like to see a big gap between the amount of credit you’re using and the available limit.  Keep your balances below 30% of the credit limit and this will help your credit scores.<br/><br/>4. If you have big balances on your credit cards this hurts your credit, EVEN IF YOU PAY YOUR BILLS ON TIME EACH MONTH!<br/><br/>5. If you slip and make a late payment, supposing you are a good customer, a lender may agree to erase the one late payment from your credit history.  This is one of those “it doesn’t hurt to ask” situations!<br/><br/>6. Check your credit report carefully to make sure there are no errors.  File a dispute with the credit reporting agency that gave you your report.  You can do this online, in writing or on the phone.<br/><br/>7.  Keep old credit cards, and do not cancel them.  Shred them if you must, but don’t cancel them!

Get your credit score up!

Maybe your credit isn’t so good, or maybe it is okay, but you’d like to make it better so you pay less interest on your modular home constru...

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Modular Home Financing 101

Modular homes are fairly cost-effective to build, however, most of us are going to need financing to realize our dream home!<br/><br/>Compared with traditional home construction loans, there is no difference in the interest rate or term in a modular home construction loan (assuming the home is built to code).   Today’s home buyers have many options when it comes to financing a modular home project.  However, in this post I’m assuming that you will need a construction loan.<br/><br/>Many modular home dealers/builders will be more than happy to assist you in securing a loan, so please let that be your first phone call.<br/><br/>Next you have to choose a lending establishment, and ask about the requirements they have for their construction loans.  By getting pre-qualified you will know exactly what you qualify for before you continue modifying your modular home. Your current income and debt and credit history are taken into account to approve you and determine an amount for which you qualify. If you can meet the lender requirements you are on your way.  However, if you have a few problems with your credit and meeting the requirements, please speak to the loan department about ways of getting your loan application approved. Assuming you are pre-qualified, you can secure your property, select a home, and get all your estimates in writing, and can continue processing your loan.<br/><br/>As soon as you qualify and are approved for the amount you can afford, the construction process will begin. Much like a standard mortgage a modular home construction loan will require the home buyer to put down approximately 20% as a down payment.  Funds are then released in “draws” as the modular home is constructed. You, the home buyer, will make interest only payments on the funds as they are distributed.  Once the home is nearly finished and the builder is close to making the final draw, the lender will convert your loan into permanent loan and you will begin to make permanent mortgage payments.<br/><br/>(There are a number of ways to boost your credit rating and make yourself more attractive to lending institutions.  Do you have any tips for boosting your credit score, please comment below!)

Modular Home Financing 101

Modular homes are fairly cost-effective to build, however, most of us are going to need financing to realize our dream home! Compared with t...

Read more »