Use the tools above to begin your Loan Process. Common questions are also addressed below:

1. What is a FICO score?

2. What do I need to know about obtaining financing info for my upcoming purchase or refinance?

3. Can I secure a construction loan with my builder if my lot is outside of a subdivision or I own my own lot?

4. What is a Construction Draw Loan (CDL)? How can it benefit me?

What is a FICO score?

A FICO score is a credit score developed by Fair Isaac & Co. Credit scoring is a method of determining the likelihood that credit users will pay their bills. Fair, Isaac began its pioneering work with credit scoring in the late 1950s and, since then, scoring has become widely accepted by lenders as a reliable means of credit evaluation. A credit score attempts to condense a borrowers 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 to be acceptable.

Credit scores are calculated by using scoring models and mathematical tables that assign points for different pieces of information which 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 numerous 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-offs, 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.

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.

What if there is an error on my credit report? If you see an error on your report, report it to 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, your mortgage company may help you correct this problem as well.

What if I have Limited Credit? If you have limited credit you can pursue the following measures to help get the best rate: 

• Call your car insurance agent and ask them to mail you a notice that you have been a good client in good standing for a reasonable length of time and that your payments have been made timely.
   

• You can also contact your utility companies such as Detroit Edison or Consumers Power and ask them to do the same.

Utility companies and agents will mail out letters that we can use to strengthen your creditworthiness. We can reconcile the information and add it to your credit report.  This is considered alternative credit and it will help those with limited credit by establishing a defensible credit history.

I have a bankruptcy in my credit history, can I still apply for a loan? Yes. At the time of application, please be sure to bring your original bankruptcy paperwork along with the discharge papers.  This documentation will be used to reconcile the proper information on your credit report.

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What do I need to know about obtaining financing info for my upcoming purchase or refinance?

With many financing programs tailored to suit your needs, we offer conventional loans programs with as little as 0%, 3%, or 5% down payment. Please ask about "seller proceeds" towards closing costs - a strategy to lower your cost of ownership.

Without a pre-approval letter, Builders and Realtors often will not accept an offer to purchase or take your offer seriously. A pre-approval by Citizens First is not a guess or estimate. It is a detailed analysis of your personal finances.

You will know the maximum amount of a mortgage loan that you can afford.

To request a pre-approval letter please gather the following before we meet:

• Two years W2 statements or most recent W2 statement

• Recent check stub reflecting YTD earnings

• Most recent asset statement or investment portfolio summary

Please note if you are:

SELF-EMPLOYED: Please bring your last two years 1040's and two years corporate returns; a profit and loss statement will also be required.

COMMISSION INCOME: If your income is based on commission please bring your 1040's along with your W2's

DIVORCED OR PREVIOUS BANKRUPTCY: If you are divorced, please bring a copy of your divorce decree. If you have claimed bankruptcy within the last seven years, please bring a full copy of your bankruptcy papers along with your discharge if applicable.

**If you do not keep your bank statements, please write down the account number and name of your bank and bring it with you to your application appointment. If you have any other additional funds (i.e., 401k, stocks, mutual funds, etc.) please bring a copy of your most recent statement. Even if you do not intend to use them, it will serve as evidence of assets.

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Can I secure a construction loan with my builder if my lot is outside of a subdivision or I own my own lot?

If you choose a builder and want to build outside of the builders subdivision or if you own your own lot, off site builds are no problem. Obtain a pre-approval for the pending build and pursue putting in an offer on the land so that you can close on your build simultaneously. This will enable you to save on title fees and other costs associated two closings. Clients often believe that they have to close on their land first and then set a separate closing for their build when in fact, the opposite is the case.

Prefer to purchase a lot and build later? No problem! Citizens First offer a 10% down payment lot loan with no private mortgage insurance (PMI) associated with the monthly payment. Call today for details.

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What is a Construction Draw Loan (CDL)? How can it benefit me?

A Construction Draw Loan is a particular type of financing tailored for new construction. A CDL can be used for a tear-down or renovation of your current home or specifically set up for a new construction build with your builder. Applicants can lock in an interest rate, close on the loan once, and then benefit from modification options at the end of construction. I can work with you to create a custom loan solution whether you are considering an off site project, a self-build, or if you are working directly with a builder. Click here to set up an initial consultation, I look forward to helping you!