There are many steps you can take to improve your credit rating, but they are not a quick fix. Your credit score is determined by your performance over time. As a first step, you can obtain a FREE credit report (once a year) by logging on to annualcreditreport.com. Choose a credit agency and answer a few simple questions to identify yourself and they will provide you with a record of the debts affecting your credit score. If this information is not accurate or up to date, you will have an opportunity to correct it before applying for a loan. If, for instance, your credit report indicates that you have an outstanding auto loan but that loan has been paid, it is important to correct that information on your report.

What is a Credit Score/FICO Score?

For a small fee the same companies that offer free credit reports will calcualte your FICO score. This is the number banks refer to when measuring borrower credit risk. The number is based on the applicant’s credit history, how much credit is used, how often it is used and how consistently it is repaid. The numbers range from 300 to 850 with the higher number being the best. This score is used by banks to determine if a loan application should be approved and what types of terms can be offered. Improving your credit score may lower your interest rate or reduce the amount of down payment required so it is a very important number. A FICO score of over 600 is usually recommended for a mortgage loan. Some lenders, however, may require only a 520 score. There are many websites that offer advice on raising your FICO score.

How much of a down payment will be required?

This amount varies depending on the loan program you qualify for. A standard mortgage may require 20% but an FHA loan can be as low as 5%. Speak to your loan officer to determine the loan program that is best for you.

Is there a difference between a standard loan and a modular home loan?

This question actually has two parts. It is important that you indicate to your lender that you are applying for a Construction Loan and that the construction is specifically for a modular building. A "standard" home loan is for a building that already exists and the bank makes one payment to the home seller on closing day. A construction loan becomes a mortgage loan at the end of the building process and the payments from the bank are made to the builder during construction in pre-determined stages outlined in your Draw Schedule.

The difference between a draw schedule for a site built home and a modular home has nothing to do with the quality of the home. The payments are simply made in a different order. For instance, the largest payment for a modular home is usually made directly to the factory before the home is delivered to your site. A site built home may not require the largest payment to be made until the home is completed. As the borrower, you will be required to approve release of these payments during the building process as they are needed.

How much will I pay for taxes?

Taxes vary greatly with each town. Your realtor may be able to give you some general information but you should contact your Assessors Office to determine the exact amount of your taxes.