As a buyer, the most important thing you can do when shopping for a loan is to pick the right lender.  Depending on your individual situation, it's important to be matched with the correct type of lender.
If you're a person with good credit, a stable income, and low debt, then you will want to find a lender who specializes in what is called "A" paper loans. By getting an "A" paper loan, you will usually get a better rate on your loan and potential lower fees.
If you have a bankruptcy, late bill payments, and high debt, than you would want to go with a "C" or "D" paper lender who specialize in harder to categorize loans.
There are lenders who do the in-between clients, referred as "B" lenders.  You may just have to close some accounts or pay a little debt off, to jump in to the next category.
Who decides what category you are in?  Well there are a number of factors involved and a lot of it is based off of your credit history.  A lender will run your credit report and a score will be generated from it.   This score is called a FICO score.  What effects your FICO score?  Below are some of the major factors to keeping a desirable high score.

  • Keep your payments on time.  Being late on bills can lower your FICO.
  • Keep your debt down.  Don't go out and buy a new car (or other large purchase) right before you're ready to purchase a home.
  • Try to avoid having a foreclosure or repossession on your credit.
  • Don't get too much credit.  Even if you don't use all of your cards, lenders look at your credit potential.  It usually looks bad to have a lot of open accounts that you could "potentially"charge up.
You can email me for referrals on lenders that I've previously used.  I receive nothing for these referrals except good service, honest quotes and a timely closing of escrows for my clients.