How is your credit? Please keep in mind that RatesAreHot.com does not pull credit. Just estimate how you feel you have been paying your bills in the last 24 months. Try to be exact as you can here, after all, our lenders will be acquiring a mortgage rate quote for you based on your credit.

Here are some general rules to follow:

Excellent Credit - If all of your bills are due on the 1st of the month and you pay all of your bills on the 1st of the month you have Excellent Credit.

Good Credit - If your bills are due on the 1st of the month and you pay them by the end of the month you should have Good Credit as long as you pay them all within 30 days after they are due. If you let one linger here and there you should still have Good Credit.

Fair Credit - Let's say you have 10 bills and 6 of them you pay on time every month and the other 4 you pay 30 plus days after the due date. You would be considered to have Fair Credit. It shows that you are trying. There would be some issues that would need to be explained to the underwriter. However, you can consider this Fair Credit. If you feel that you have Fair Credit continue on and also complete our FHA Purchase and FHA Refinance sections of our website too.  FHA is much more lenient to borrowers when it comes to having fair and poor credit.  This is why we suggest that you continue on and complete the FHA sections of the ratesarehot.com website. 

Poor Credit - This would be the situation for you if you have consistently paid your bills late every month. If your bills are due on the 1st and you consistently pay them more than 30 days after the due date you would be considered to have Poor Credit. If this is the case for you and if you need help please move on to the FHA Purchase and FHA Refinance sections of our website and complete those sections. RatesAreHot.com has several lenders that can help you. These lenders will be offering a mortgage rate quote to you based on a poor credit scenario if you feel that you have poor credit. Don't worry our lenders can help you if you have poor credit. There are ways right now that our lenders can either counsel you through your situation and get you back on the road to health and wealth. With a little help you can eventually get into your dream home. Also, please feel free to click on our live help button or email us at info@ratesarehot.com and our experienced staff will help you. Also, If you are a first time homebuyer please continue on to the FHA application and complete that one too.

Value of property-

The value of the property is based on the current market value of the homes in the area. The homes that are used to estimate the value of the property must be comparable. This means similar in size, type, bedrooms, bathrooms, etc...  What shape the home is in and the location plays an important part. To get a good estimated value of a home, a good place to visit is zillow.com or trulia.com.

If you are refinancing this applies to you. You need to enter the "balance" of your 1st mortgage (only) in this box. You can either go on line to get your mortgage balance from your existing mortgage company (such as Chase, Citibank, Wells Fargo, Bank of America or whoever is holding your first mortgage) or you can estimate it. Look at your mortgage statement that you receive on a monthly basis.... on that statement there should be an estimated mortgage balance, if so, enter that in this box. It's always good to know the balance of your existing mortgage or mortgages (if you have a 2nd mortgage).

With this "new" refinance the "new" mortgage company will obtain an accurate payoff for you from your existing mortgage company prior to closing. The payoff will tell the new mortgage company "how much" they have to payoff in order to obtain a brand new mortgage refinance. Knowing the exact number is almost impossible at the time of this mortgage prequalification however, the closer you can estimate the better qualified you will be for a new mortgage refinance.

You can always call your existing mortgage lender and obtain a payoff yourself but remember this cost money. How much depends on your lender. Always remember that your payoff includes the following:

Existing mortgage balance

Property Taxes (including back taxes owed)

Late Fees (if you were ever late on your mortgage and didn't pay the late fee the mortgage company adds that in the end)

Any homeowners insurance (fire insurance) that is due (including anything past due)

Payoff letters (yes, it costs money for somebody at Chase Mortgage to figure out what your payoff is and somebody has to pay for it and that is you)

So, for example you might think that the balance of your first mortgage is around $200,000 and if you estimate that here for a mortgage prequalification that is fine but remember that this is only an estimate. With all of the above fees the actual balance due to your existing mortgage company is probably more like $202,000.

Also, when you make a mortgage payment every month that payment is being made "in the rears" so you are paying this month for last months payment.

Current Interest Rate -

The interest rate on your first mortgage.

Second Mortgage Balance

The second mortgage balance is an additional lien against your property. You have your first (lien) mortgage which is your main mortgage and than you have your second (lien) mortgage. This could be in the form of a Home Equity Line of Credit or if you borrowered money for your business the bank or lender that you used probably took a second lien against your home to use as collateral in case you default on the loan. Some people take second liens out for home improvement or luxury items such as a pool. A second lien simply means that there is a second lien against your property which is behind the first lien. When you go to refinance or sell your home the first lien mortgage is paid first and than the second is paid second. Check your counties recorder of deeds office and find out how many liens you have against your property. It's public information for everyone to see. You will probably have to pay around $10.00 to have the records mailed to you.