You can expect to receive more disclosure notices when you apply for your Arizona mortgage. For instance, expect to see a credit score notice, which tells you how your credit score compares to other consumers’ scores and includes information about the credit agency that provided the information so you can check your credit report for any errors. Or you may receive a risk based pricing notice or account review notice instead of the credit score notice, which includes information on how you can obtain a free credit report and where to request one within 60 days after receiving the notice.

It is a good idea to pull a copy of your free credit report before you apply for a loan to dispute any errors that you may find and then writing to the credit bureaus to have them remove they items from your credit report in order to raise your credit score. This way, you will qualify for better Arizona mortgage rates and more mortgage products giving you a greater degree of flexibility in selecting a loan package, and you don’t have to explain negative items to your lender.

Credit Scores

Lenders use your credit score to determine your credit worthiness. This affects your Arizona mortgage rates and your loan terms. By paying your bills on time and not going over your credit limits, you establish a favorable credit history. If you make late payments, your credit score will go down. You want to make sure you don’t take out any new credit prior to applying for a home mortgage, and you pay down your credit balances so that your debt to income ratio isn’t too high. Talk to your Arizona mortgage broker, and they can recommend other steps you can take to make sure you get the best Arizona mortgage rates before you apply for your Arizona mortgage.

Transfer of Your Mortgage

Once you have obtained a mortgage, your lender must advise in writing when there are any transfers or assignments. Mortgage services maintain your loan on a daily basis. They do not own the loan, but are just servicing it. If your mortgage services also is administering your escrow account, federal laws require your services to make your tax payments and insurance payments on time out of the account. They must provide you with an itemized statement within 45 days after opening the escrow account showing the amount of your taxes and insurance premiums and other amounts that are expected to be paid out of the escrow account for the next 12 months and the payment dates. They must also provide you with a free statement once a year showing all expenses made against your account during the year. When your mortgage services changes, the mortgage service must send you a notice advising you of the change, and the new mortgage services must also send you a notice telling you where to send your loan payments.

Now that you understand the many reasons why your lender or loan services must give you these notices and disclosures by law, you should make an effort to keep track of the information in case you need to dispute accounting errors or other errors. This information may be crucial in case your lender sends you a notice of default or institutes wrongful foreclosure proceedings against you so that you can defend yourself against these actions.

If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to team@azmortgagebrothers.com or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

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Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.

Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.

Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.

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