Waukesha County Home

HOME JANUARY 2019 2 Distributed by: ©2018 by Conley Media Waukesha County Home is published monthly by Conley Media - Waukesha County, 801 N. Barstow St., Waukesha, WI 53186. Contents of this publication may not be reproduced in any form without the written consent of the publisher. A publication of Conley Media Sales Director: Jim Baumgart 262/513-2621 jbaumgart@conleynet.com Editor: Dan Muckelbauer 262/513-2626 dmuck@conleynet.com Production: Patricia Scheel 262/513-2690 pscheel@conleynet.com Home Volume 8 ■ Number 1 ■ January 2019 K i t c h e n s | B a t h s | D e n s | C a b i n s | O f f i c e s | R e c R o o m s Work With Experienced Design Professionals "We Specialize in Cabinetry" 1005 Richards Road, Hartland | 262.367.9439 www.kitchencreators.com Cabinetry For Every Room, Every Budget! 263209002 We Beat All Big Box Stores and all Competitors | Visit Our Showroom By Appointment SHOWROOM CLOSEOUT SALE GOING ON NOW! WE SPECIALIZE IN NORCRAFT'S MID CONTINENT CABINETRY report annually for any errors, like medical bills, which can also lower credit scores. "It's always good to check your credit report," Kilby said. Not having credit history can also lead to a low credit score. Aaron Kaufman, loan partner with Bank of England Mortgage in Brookfield, recom- mends building up a credit history by charging small purchases (gas or groceries, for example) to a secure credit card. Being added as an authorized user to another credit card account (such as one of a spouse or other relative) can also help build a solid credit history. Kaufman advises potential borrowers hold off on financing large purchases, such as a car or furniture, as these purchases increase one's debt-to-income ratio. Kaufman noted that he has seen clients increase their credit scores in as short a time as 30 days. To avoid making late pay- ments, for example, set up automatic bill payments online. More than 20 percent down "Anyone can get their credit up if you can put in the work," he said. Having a less-than-stellar credit score, however, does not bar individuals from get- ting a favorable interest rate, provided they can provide a down payment of more than 20 percent of the home's purchase price. Borrowers who put down less than 20 per- cent must pay private mortgage insurance, or PMI, no matter how high their credit score, Frenzel said. Lenders typically require borrowers-to-be to provide tax and financial documents, among them W-2s and two months' worth of bank statements and pay stubs. Although many mortgage lenders work with borrow- ers online, Kaufman suggests meeting in person, if possible, to discuss credit scores and other necessary information when it comes to applying for a mortgage. "If a lender is unwilling to sit down with you, move on," he said. Continued from Page 1 Credit score: Do's and don'ts of getting a home loan Financial jargon can be unfamiliar to first-time borrowers. Below, a glossary, gleaned from various sources. 1.Adjustable-rate mortgage A mortgage with an interest rate that changes according to certain dates. 2. Annual percentage rate (APR) The total cost to borrow funds written as a yearly percentage. APR can include interest rates and other special fees. 3. Amortization A schedule indicating how a loan will be repaid. An amortization schedule for a mortgage includes the amount bor- rowed, the length of time in which the loan must be repaid (loan terms) and interest rates. 4. Closing The last step in getting a mortgage. Includes delivery of the home deed, releasing necessary funds and signing loan documents. 5. Credit bureau An agency that compiles and analyzes credit ratings of individuals. Credit bureaus provide this information to lenders, including banks. 6. Credit score A three-digit number that rates an indi- vidual's credit based on several factors, including credit utilization and payments made on time. Lenders use a credit score to determine the likelihood that a borrower will pay back a mortgage or home equity loan. 7. Debt-to-income ratio A process that compares a borrower's overall debts to his or her income. Lenders look at the debt-to-income ratio as a way to help determine a borrower's ability to pay back a mortgage or home equity loan. 8. Debt (or credit) utilization ratio A ratio that compares an individual's total debts to total available credit, and also a tool credit bureaus use to deter- mine an individual's credit score. 9. Pre-qualification A process in which the borrower pro- vides lenders with information including assets, income and debts in order for lenders to estimate the amount of a mortgage they will approve for a borrow- er. 10. Private mortgage insurance (PMI) Insurance required when a borrower makes a down payment of less than 20 percent of a home's purchase price. — Catherine Jozwik, Special to Waukesha County Home Demystifying financial jargon Meeting with a lender face to face can be helpful to borrowers. If a lender doesn't want to meet in person, move on, says Aaron Kaufman of Bank of England Mortgage in Brookfield

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