People are constantly making mistakes when it comes to home financing.  Whether it’s a refinance or a home purchase, there are certain precautions to take to make sure you end up with the best loan product for your situation.  It is similar to the instinctive process of finding a mate. 

It’s far too common for people to look at one rate, one term, and pull the trigger.  Shop around!  You don’t talk about kids and a white picket fence on a first date.  Why?  Because you do your research, and make sure she (or he) is the right one.  Sure, she might seem perfect.  But when you meet all eleven of her cats, you will most likely begin searching elsewhere.  Mortgages vary just as much as people, so be sure to look as many places as possible for the best rate/term package for you.

Be sure to check your credit score BEFORE you apply for a loan.  Have you ever walked into a first date without rehearsing at least a few of the inevitable questions? Of course not – because you want to seem eloquent.  You want to know yourself.  Before applying for a mortgage, you need to know where you stand and the products that will be made available to you.   Check out AnnualCreditReport.com for a free lesson in your credit history (and E-harmony.com for an expensive lesson in who you’re compatible with).

Another common error is falling in “love” with a house and signing up for payments you can’t afford.  Your monetary position dictates where you live, not vice versa.  We all want to date that tall blonde, but her infatuation with Italian leather and German sports cars limit those who actually can.  Having easily affordable house payments will keep you from worrying down the road (and, God forbid, foreclosing).  Getting a pre-approval letter from a lender like CapCenter will help you avoid this dating (and lending) pitfall.

Finally, be sure to get a written offer from your lender.  While you can be sure an offer from CapCenter is accurate and above board, you never want to be assaulted by a pack of nasty surprises at the closing table.  Like an air-tight prenuptial agreement, you want to know what‘s being promised is what you’re getting.    You should never be caught off guard by your mortgage lender, either.  

In sum, you know you won’t get seriously involved with someone without doing your due diligence.  Getting to know their personality.  Learning about their passions.  Analyzing their facebook account.  Whether it’s for a refinance or a home purchase, the same amount of care and precaution needs to go in to finding a mortgage.

Dust off the picnic table, folks.  Memorial Day is just around the corner which means it’s time to begin planning that wonderfully American tradition of grilling out. 

First and foremost, I’d like to get something out of the way.  While often called the backyard “barbecue,” Richmonders recognize this misnomer.  The word “barbecue” does not refer to an event.  It refers to a meat (usually pork) prepared a variety of different ways, but always cooked “low and slow.”  Say you’re hosting a ‘barbecue’ and you risk the ridicule of your guests.

Now that that’s covered, let’s talk about what’s important for your Memorial Day celebration.  Grill something.  Anything.  It doesn’t matter if its filet mignon or an Oscar Meyer wiener.  Seeing smoke rise from a grill is somehow reminiscent of the battlefields from whence this day came, reminding us that atop all things, Memorial Day is about saying “thanks.”  Have a moment of silence.  Remind your guests that the party was provided for by Americans willing to make the ultimate sacrifice for the ideals of a nation. 

Next, provide a game.  This decision should be made purely on taste, as backyard leisure sports require no real athleticism.  Options are as follows:

Badminton – The standard.  Easier than tennis.  Cooler than ping-pong.

Bocce ball – I know the name sounds Italian, but idea is as American as it gets.

Horseshoes – You’re going to have two very unsightly but worthwhile dead-spots in your yard.

Lawn Darts – If either alcohol or children will be present, disregard this option.

Cornhole – A hipper (and safer) alternative to horseshoes. 

While this may be the most important decision you make, don’t sweat it.  Any of these will surely be a hit.  Remember, the idea is to appreciate the moment. 

So ultimately, there are two takeaways from Memorial Day.  The first is to have fun.  Come on – You’re outside enjoying nature, friends, family, and maybe a cocktail.  Second, recognize that men and women have laid down their lives so that you may have that fun.   American soldiers have afforded you the right to eat that steak even though your doctor recommends against it.  It is a proud privilege to be American.   To all the men and women of the armed forces – Thank You.

How Your Credit Score is Calculated

The key to finding the best rate on a mortgage loan is to have a good credit history and a high credit score. Any lender will consider your credit score before approving you for any type of loan. It is your credit score that determines your financial risk to the lender. The higher your score, the more likely you will be, in the lender’s eyes, to pay back your loan. So, it is imperative that you understand the criteria from which your credit score is calculated.

Credit scores are calculated based on the date in your credit report. The most widely used software to generate credit scores was created by the Fair Isaac Corporation. So, many times, you may see credit scores references as FICO scores. As a general rule, there are five criteria used to calculate your credit score. The percentage of each criterion and the factors included in each are listed below:

35% – Your Payment History

• Number of accounts paid as agreed
• Accounts in collection
• Delinquent accounts

30% – Amount Owed

• Amount and type of accounts with balances
• Amount of total revolving credit that has been used
• Installment loan balances vs. original loan amount
• Number of zero balance accounts

15% – Length of Credit History

• Total length of time on your credit report
• Amount of time since opening of accounts
• Date of last activity on accounts

10% – Types of Credit Used

• Total number of installment, revolving, mortgage or other types of accounts

10% – New Credit

• Number of accounts recently open
• Proportion of new accounts to total accounts
• Number of recent credit inquiries
• Length of time past for recent inquiries or new accounts

Credit scores range from 340 to 850. Borrowers with a credit score over 700 are usually offered more financing options and better interest rates on loans. So, the more you know about your credit score, the more likely you are to qualify for your next loan.

We hope this helps you understand YOUR credit score!

Greetings! Welcome to the CapCenter blog.   

This blog is dedicated to two things – keeping our customers happy, and helping celebrate the joy of homeownership.  Because we know how stressful home loans can be, we work hard with our clients to get them to closing as quickly and stress-free as possible.  On top of that, we pay ALL of your closing costs.  So whether you’re purchasing or refinancing, CapCenter will not only keep you happy with great rates and hassle-free lending, but you will save big bucks on your closing costs. 

When someone purchases a new home, or refinances a current property, it is cause for celebration.  This blog is dedicated to just that. This will be a forum not only for home mortgages, but for all things related to homeownership.  We want to focus on gardening, do-it-yourself fixes, going green around the house, even hosting great house parties.  Please send us material, too!  We would love to hear your thoughts – tips we may have left out, past lending experiences, or stories of why you love your home.  Also, we are always looking for new ways to help our customers.  If you have suggestions or feedback for our consultants, please feel free to post them here!

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Thanks for reading.  We hope you enjoy.

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