How can I get a loan?
What documentation do I need to have at the time of application?
Is there an Application fee or Pre-Approval Fee?
What is the difference between pre-qualifying and pre-approval?
How long does it take to get pre-qualified or pre-approved?
What are credit scores?
How can I increase my score?
What if there is an error on my credit report?

How can I get a loan?

Please contact us at our Newington, NH office. One of our mortgage consultants will conduct a brief interview over the phone. If we determine that we can meet your objectives, we'll set up an appointment in your home or office and take your application. We don't charge any application fees and the entire process usually takes about 3-4 weeks from application to closing. Click here for contact information and directions to our Newington, NH office.

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Is there an Application fee or Pre-Approval Fee?

No. There are no application fees, and we will pre-approve you free of charge.

What is the difference between pre-qualifying and pre-approval?

A pre-qualification for a specific loan dollar amount is based on a review of basic financial information you supply to us. No verification of this information is performed. The pre-qualification means that if the information you supplied to us is accurate, subject to verification of credit, appraisal of the property, and the lenders underwriting criteria for the loan amount, you should be able to receive a loan as described in the pre-qualification letter or document. This is not a final approval. A pre-qualification is not a commitment to lend. However, a pre-qualification letter indicates to you and the seller that in the opinion of the loan officer you are qualified to purchase the house you are making an offer on.

Pre-approval is a step above pre-qualification. Pre-approval involves verifying your credit, down payment, employment history, etc. Your loan application is submitted to an underwriter and a decision is made regarding your loan application. If your loan is pre-approved, the lender will loan you the amount of money requested subject to: a satisfactory appraisal (both as to value and type of product); your financial condition remains as stated on your application and satisfying any underwriting conditions from the lender. A pre-approval allows you to close very quickly when you do find a house. A pre-approval can also help you to negotiate a better price with the seller, since being pre-approved is very close to having cash in the bank to pay for the house!

How long does it take to get pre-qualified or pre-approved?

Pre-Qualifications take about 5-10 minutes, pre-approvals can take up to 24 hours due to the level of detail involved with the process.

What are credit scores?

A credit score (such as FICO - developed by Fair Isaac & Co and used by Experian, or BEACON - developed and used by Equifax or EMPIRICA - developed and used by Trans Union) or credit scoring is a method of determining the likelihood that a credit user (you) will pay their bills. Fair Isaac began its pioneering work with credit scoring in the late 1950's. Since then scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrower's credit history into a single number. Fair, Isaac & Co. and the credit bureaus do not reveal how these scores are computed. The Federal Trade Commission has ruled this practice to be acceptable.

Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information that best predict future credit performance. Developing these models involves studying how thousands, even millions, of people have used credit. Score-model developers find predictive factors in the data that have proven to indicate future credit performance. Models can be developed from different sources of data. Credit bureau models are developed from information in consumer credit bureau reports.

Credit scores analyze a borrower's credit history considering many factors such as:

• Late payments
• The amount of time credit has been established
• The amount of credit used versus the amount of credit available
• Length of time at present residence
• Employment history
• Negative credit information such as bankruptcies, charge-off's, collections, etc
.

There are really three credit scores computed by data provided by each of the three bureaus--Experian, Trans Union and Equifax. Some lenders use one of these three scores, while other lenders may use the middle score and still others may use all three.

How can I increase my score?

While it is difficult to increase your score over the short run, here are some tips to increase your score over a period of time.

• Pay your bills on time. Late payments and collections can have a serious impact on your score.
• Do not apply for credit frequently. Having a large number of inquiries on your credit report can worsen your score.
• Reduce your credit card balances. If you are "maxed" out on your credit cards, this will affect your credit score negatively.
• If you have limited credit, obtain additional credit. Not having sufficient credit can negatively impact your score. Normally lenders like to see you have at least five (5) lines of credit not including utilities (such as telephone, gas and electric companies, and oil company credit cards).

What if there is an error on my credit report?

If you see an error on your report, to rectify it, you must contact the credit bureau. The three major bureaus in the U.S., Equifax (1-800-685-1111), Trans Union (1-800-916-8800) and Experian (1-888-397-3742) all have procedures for correcting information promptly. Alternatively, we may help you correct this problem as well. Understand this process takes time, must be done in writing, and may require proof depending on the nature of the error.