chase home loan credit score requirements

Chase home loan advisors are available by phone or email, and you can uses a soft credit inquiry that does not affect your credit score. Compare mortgage lenders. Compare top brands by home loan type, state availability and credit score. Select See rates to provide the lender with. 15745328Condition: open Balance: $279.671 Types: HomeLoan Pay status: cument Two Year This is why late payments weigh so heavily on your credit score.

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6 Reasons Not to Get a Mortgage Through Chase: A Review

Sunny went through a nightmare with Chase and is sharing her experience to help others avoid the same difficulties.

Thinking about applying for a home loan through Chase? I did, and it was a terrible experience that resulted in me losing all trust in the company. I'm sharing this information with the hope that it helps others avoid a similar predicament.

The Application Process

I applied online, and in a few days, I was contacted by a home lending advisor. He asked me questions about my employment and finances and answered the questions I had at that time.

After talking to him, I submitted all the documents that were required through Chase's online portal. Required documents included W2s, tax forms, pay stubs, etc., and all I had to do was upload these files and mark the tasks complete.

About a week after submitting the documents, I got a phone call from my home loan advisor informing me that I had been conditionally approved. He sent me a conditional approval letter so I could shop with confidence knowing how expensive of a house I could afford.

The Transition From Home Lending Advisor to Client Care Specialist

Once I found a home and submitted the purchase contract, I was told that I could no longer work with the home lending advisor during the underwriting process. Instead, I would now be working with a client care specialist.

I didn't hear from my client care specialist for a week. When I contacted the home loan advisor for an update, a client care specialist who was not the one assigned to me called me back. Things went downhill very quickly after this.

6 Reasons Why Chase Is a Bad Lender

  1. They are unprofessional and lack transparency.
  2. They do not respect the closing timeline and will ignore your file for weeks.
  3. They give misleading, false, and inconsistent information.
  4. They are unresponsive and communicate poorly.
  5. They are dishonest.
  6. They do not uphold the "Chase Closing Guarantee" if they cause you to close late.

1. They Are Unprofessional and Lack Transparency

Let's call the client care specialist "Sharon." During the first week, she would periodically call and ask me to upload documentation for certain tasks in the portal, which I did promptly.

I noticed that every time I uploaded a file, the task would soon be marked incomplete. When I reached out to Sharon to understand why and what sort of documentation would be acceptable, she never responded. I called and left voicemails, I emailed, and I even CC'd the home loan advisor on those emails so that he knew I was struggling to connect with Sharon. I got no response. Meanwhile, incomplete tasks were piling up in the portal with no explanation to help me understand what to do. Our file was stuck, and no one was helping us.

Two weeks later, I called 15 times in row and was able to catch Sharon on the phone. She sighed and said she was swamped, and she didn't seem happy to help, even though the only way to move forward was for her to tell us exactly what documentation we needed to submit.

2. They Do Not Respect the Closing Timeline and Will Ignore Your File for Weeks

Sharon went AWOL again after that. We now had 1.5 weeks left before our closing deadline, and I still didn't hear from Sharon. I was terrified that our loan would not close and I would lose my earnest money deposit, which was half of my life savings.

The sellers were also getting nervous. We had to ask for an extension, which put them in a tough spot because they were also looking to close on their home. The worst part was that we didn't know which date to extend the deadline to because there was no communication from Chase. The best we could say was, "We think we'll close late because we haven't heard from Chase."

In a desperate attempt, I reached out to Chase on social media. They responded promptly and were kind and respectful. I wish Chase's home lending department was as competent and as respectful as their social media team.

Social media must have talked to Sharon's manager and pushed her to take our file seriously because Sharon eventually called and told us exactly what documentation we needed to submit. Just two days later, underwriting conditionally approved our loan.

3. They Give Misleading, False, and Inconsistent Information

What happened next was even more of a pain. I submitted rent receipts as proof of rental income during the initial underwriting process, and they were accepted. We were conditionally approved with those rental receipts. But after purchase, those receipts were considered unacceptable, and they required photocopies of rent checks instead.

Because our tenants pay in cash, we couldn't produce proof. This lowered our income significantly. Chase irresponsibly pre-approved us based on that rental income and then pulled a bait-and-switch at the last minute.

I was then asked to provide more money to cover the difference in appraisal despite having already made a 50% down payment. The house we bought was appraised at $50,000 less than the purchase price. But we had a 50% downpayment, so the lower appraisal didn't make much of a difference, and we still clearly qualified to purchase the home with a now 49% downpayment. Sharon went over the appraisal with us and said we needed to bring an extra $50,000 to the table or get the house reappraised.

This didn't sound right to me, so I asked her to ask the underwriters, and I never heard back from her. So, I guess it wasn't an issue, and she just fed me false information.

Read More From Toughnickel

There was also no clarity about what types of documents were acceptable. I had to call or visit all of my banks, HOAs, and insurance companies to get documents that I was told were needed, and as it turned out, they weren't needed. Here are some examples of the documents Sharon asked for and then didn't accept.

HOA Bills

Sharon said the official bill ledger from the HOA showing charges and payments was not valid and that an email from the HOA stating the charges would be more acceptable. She then said the email was not acceptable and eventually accepted the official bill ledger.

Bank Statements

Sharon said only monthly bank statements would be acceptable—not screenshots of the balance and activity. As it turned out, screenshots of balance and activity were acceptable.

Proof of Insurance

Policy declaration was not accepted because it didn't include the address of the property, despite the property being part of an HOA, so Sharon required an email from the HOA. Then, she decided not to accept the email from HOA and eventually accepted the policy declaration.

My funds did not change during the month-long underwriting process. I was told I had "insufficient funds" and needed to provide an extra $60,000, despite having pre-approved me to purchase this house based on the current funds. Sharon, of course, didn't know why underwriting was asking for an extra $60,000 and said she would ask them, but she never got back to me.

4. They Are Unresponsive and Communicate Poorly

Sharon could not answer even simple questions. Every time, she said she would ask the underwriters, but I would never hear back from her. She never responded to emails, calls, or voicemails.

When the situation was escalated by my reaching out via social media, she finally reached out to me, but it was more of the same from before—she didn't know the answer to anything and was completely callous and incompetent. It would have been better to speak to an automated operator. At least the operator would not sigh and sound like they were being bothered.

5. They Are Dishonest

Chase will lure you in with the promise that you can buy a home rather than giving you an honest estimate of how much you can afford in the conditional approval letter. If you listen to their lie, you will end up bidding on a home above your qualified range, they will reject you during underwriting, and you will lose out on the house.

Bait-and-Switch Tactics

Conditional approval means that you are qualified to buy the house based on an underwriting review of your income and financing. The only condition is that you provide proof of income and funding during the underwriting process so that the lender can officially file the paperwork and give you an official approval . . or so I thought.

It seems like Chase's conditional approval is not underwritten because once we went through the after-purchase underwriting, our finances were suddenly "insufficient." The conditional approval, as it turns out, is more like a pre-qualification, which isn't good enough to give buyers confidence that they will close on a house.

Chase needs to be honest about what "conditional approval" means because telling us we need to offer an extra $60,000 is a big ask when we had already been conditionally approved to afford this home based on the current funds.

False Confidence

Before we made a bid on the house we wanted to purchase, we called our home lending advisor to confirm that our finances and funding looked strong and to ask about a closing timeline. He told us we were "more than qualified" to purchase this home and that he wouldn't be worried if we removed our loan contingency because our file was so strong. He also said the closing timeline would be 25 days.

Fast forward to the underwriting process, and Chase suddenly changed their tune. Suddenly, we don't have enough funds, even though our funds did not change from the time we bid on the house. Chase didn't take our file seriously for three weeks! They dragged their feet and only started reviewing our file in earnest when we reached out on social media.

Because of this, we received our closing disclosure the night before closing (even though lenders are legally required to provide the closing disclosure three days before closing). Chase not only caused us to close late, but they also violated federal law.

6. They Do Not Uphold the "Chase Closing Guarantee" if They Cause You to Close Late

Chase increased our loan amount in order to approve us because of "insufficient funds," which means we now have to pay $300 more in mortgage payments each month. Had we known this before we bid on this house, we would have shopped at a lower price point. We are lucky we can afford this, but for many people, the extra $300 could cripple their finances significantly.

Because of this mistake they made and the readjustment they made to the loan amount in order to make it work, we ended up closing late. Chase's closing guarantee promises a refund of $2,500 if they don't close in three weeks or on closing day. I have yet to receive that refund. They are the reason we closed late and they neither apologized nor upheld their own policy.

During the application, my home loan advisor gave us assurance that if Chase causes us to close late, they would take responsibility and do right by us with the $2500 refund program. As it turned out, the closing guarantee was also a lie—just like the "conditional approval" and everything else about the interaction I had with Chase.

Want to Close on Time? Go With a Different Lender

I really wanted to like Chase and gave them my trust, but they really let me down. For your security and sanity, I recommend working with a private loan broker instead. You may have to pay a few hundred more in one-time fees, but at least you'll have the confidence that you can afford the home you buy and that you will close and close on time.

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Источник: https://toughnickel.com

Home equity rate and payment calculator

For a list of your home equity options, enter your loan criteria.

Payment and rate are estimated based on accessing: 

You may apply for a line of credit up to: 

A home equity line of credit is the most flexible type of home financing available. During your 10-year draw period, you can borrow as little or as much as you need, up to your approved credit line. You have the option to choose a minimum monthly payment of 1% or 2% of your outstanding balance, though some may qualify to make interest-only monthly payments. The minimum monthly payment shown in your results reflects interest-only monthly payments.

As your payments during the draw period are applied to the principal amount you owe, your available credit increases. Once the draw period ends, the repayment period begins.

For a list of your home equity options, enter your loan criteria.

Results are estimated based on a home equity loan amount of: 

You may apply for a home equity loan up to: 

A home equity loan is one-time installment loan secured by your home. Both the interest rate and monthly payments are fixed, ensuring you’ll have a predictable repayment schedule for the life of the loan.

For a list of your home equity options, enter your loan criteria.

Results are estimated based on a home equity loan amount of: 

You may apply for a home equity loan up to: 

A home equity loan is one-time installment loan secured by your home. Both the interest rate and monthly payments are fixed, ensuring you’ll have a predictable repayment schedule for the life of the loan.

For a list of your home equity options, enter your loan criteria.

Results are estimated based on a home equity loan amount of: 

You may apply for a home equity loan up to: 

A home equity loan is one-time installment loan secured by your home. Both the interest rate and monthly payments are fixed, ensuring you’ll have a predictable repayment schedule for the life of the loan.

For a list of your home equity options, enter your loan criteria.

Results are estimated based on a home equity loan amount of: 

You may apply for a home equity loan up to: 

A home equity loan is one-time installment loan secured by your home. Both the interest rate and monthly payments are fixed, ensuring you’ll have a predictable repayment schedule for the life of the loan.

For a list of your home equity options, enter your loan criteria.

Results are estimated based on a home equity loan amount of: 

You may apply for a home equity loan up to: 

A home equity loan is one-time installment loan secured by your home. Both the interest rate and monthly payments are fixed, ensuring you’ll have a predictable repayment schedule for the life of the loan.

Want to discuss your options with a banker?

Depending on your situation, discussing your home equity options with a banker might be your best next step. Bankers are available for virtual, phone and in-person appointments.

Contact us

For a list of your home equity options, enter your loan criteria.

Results are estimated based on a Smart Refinance loan amount of: 

You may apply for a Smart Refinance loan up to: 

A Smart Refinance loan is a no-closing-cost mortgage refinance option that lets you take advantage of lower rates, get cash out at closing and change your loan term to 5, 10, 15 or 20 years. The monthly payment reflects both the repayment for the cash out at closing and your monthly mortgage payment.

Smart Refinance can only be used as a home equity loan or refinance on your existing primary residence, and will be a first lien against that home. You can use the cash you get out at closing for home improvement projects, major purchases, debt consolidation, or other needs.

For a list of your home equity options, enter your loan criteria.

Results are estimated based on a Smart Refinance loan amount of: 

You may apply for a Smart Refinance loan up to: 

A Smart Refinance loan is a no-closing-cost mortgage refinance option that lets you take advantage of lower rates, get cash out at closing and change your loan term to 5, 10, 15 or 20 years. The monthly payment reflects both the repayment for the cash out at closing and your monthly mortgage payment.

Smart Refinance can only be used as a home equity loan or refinance on your existing primary residence, and will be a first lien against that home. You can use the cash you get out at closing for home improvement projects, major purchases, debt consolidation, or other needs.

For a list of your home equity options, enter your loan criteria.

Results are estimated based on a Smart Refinance loan amount of: 

You may apply for a Smart Refinance loan up to: 

A Smart Refinance loan is a no-closing-cost mortgage refinance option that lets you take advantage of lower rates, get cash out at closing and change your loan term to 5, 10, 15 or 20 years. The monthly payment reflects both the repayment for the cash out at closing and your monthly mortgage payment.

Smart Refinance can only be used as a home equity loan or refinance on your existing primary residence, and will be a first lien against that home. You can use the cash you get out at closing for home improvement projects, major purchases, debt consolidation, or other needs.

For a list of your home equity options, enter your loan criteria.

Results are estimated based on a Smart Refinance loan amount of: 

You may apply for a Smart Refinance loan up to: 

A Smart Refinance loan is a no-closing-cost mortgage refinance option that lets you take advantage of lower rates, get cash out at closing and change your loan term to 5, 10, 15 or 20 years. The monthly payment reflects both the repayment for the cash out at closing and your monthly mortgage payment.

Smart Refinance can only be used as a home equity loan or refinance on your existing primary residence, and will be a first lien against that home. You can use the cash you get out at closing for home improvement projects, major purchases, debt consolidation, or other needs.

Источник: https://www.usbank.com/home-loans/home-equity/home-equity-rate-and-payment-calculator.html

Highlights from this report:

  • Some mortgage lenders have increased credit-score requirements for borrowers.
  • We are seeing higher credit standards for both FHA and conventional loans.
  • According to one report, some lenders are setting the bar around 660.
  • These are temporary measures designed to reduce risk and losses.

Lenders Increase FHA Credit Standards in 2020

Here we go again. Recent reports show that mortgage lenders are once more tightening up their standards for borrowers, due to economic concerns. This happened in the wake of the last recession (2008), and it appears to be happening again.

The short version is that borrowers seeking an FHA loan to buy a house will probably need higher credit scores to qualify, based on current lender requirements.

This trend appears to be happening across the board, with conventional loans as well as those backed by the federal government.

On April 13, for example, HousingWire reported that mega-bank JPMorgan Chase was increasing its credit-score standards for all borrowers. According to that story:

“JPMorgan Chase this week is increasing its minimum lending standards … Chase is also raising its minimum FICO credit score to 700 on purchase mortgages. Put simply, if a borrower doesn’t have a 20% down payment and a FICO score of 700 or above, they will likely not be able get a loan from Chase to buy a home.”

Granted, this is just one bank. But the big banks tend to move in lockstep when it comes to these kinds of policy changes. So we could see similar announcements from other big banks over the coming weeks.

Last month, Bankrate.com reported that both Wells Fargo and US Bank had increased their minimum credit-score requirement for mortgage borrowers to 680. Those changes applied to government-backed loans like FHA and VA, as well as conventional (non-government-backed) mortgage products.

And it’s not just the big banks making these kinds of changes. Smaller regional and local banks are also tightening up their standards for FHA and conventional loans.

Justin Rosenal, senior sales vice president at Union Savings Bank, recently told the Pittsburgh Post-Gazette:

“It’s almost impossible to do an FHA [Federal Housing Administration] loan with a credit score of less than 660 right now.”

Just know that these standards can vary from one lender to the next. One lender might require a credit score of, say, 660 for an FHA loan in 2020. Another might set the bar down around 620. It can vary. So shop around.

Official FHA Requirements Have Not Changed

We need to make an important distinction here. There’s a difference between the official credit-score requirements for FHA loans, and the requirements used by individual banks and mortgage lenders when screening applicants.

Here’s the difference:

  • The official requirements for FHA loan credit scores in 2020 come from the Federal Housing Administration. This agency falls under the U.S. Department of Housing and Urban Development (HUD). They require a minimum credit score of 580 for FHA loans with a down payment as low as 3.5%.
  • Mortgage lenders can set their own requirements for FHA credit scores. Their standards are often influenced by investors who end up buying the loans they generate. And right now, investors are concerned about the financial woes that are roiling the U.S. economy.

To sum up: The FHA credit score changes we’ve seen in recent weeks are coming from banks and mortgage lenders — not from the government.

Measuring Risk With Mortgage Loans

Credit scores are basically a risk indicator. These three-digit numbers reflect how well, or how poorly, a person has borrowed and repaid money in the past. And that’s obviously something lenders want to know, when considering someone for a home loan.

In times of increased economic uncertainty, mortgage lenders tend to increase their credit-score requirements. They usually require larger down payments as well, along with lower debt levels among borrowers.

This is largely why we are seeing higher credit-score requirements for FHA loans in 2020. It’s a direct result of the coronavirus / COVID-19 public health crisis, and the economic recession driven by that crisis.

With the U.S. unemployment rate hitting its highest point since the 1930s, lenders today are concerned about mortgage default, foreclosure, etc. So, in order to reduce those risks, they are raising the bar for eligibility. That applies to all types of mortgage loans, including FHA.

A Temporary Measure Based on Economic Conditions

As mentioned earlier, these higher credit-score requirements will likely be temporary in nature. Some lenders have come right out and stated as much.

Amy Bonitatibus, chief marketing officer for JPMorgan Chase’s home loan division, recently told Reuters: “Due to the economic uncertainty, we are making temporary changes that will allow us to more closely focus on serving our existing customers.”

Mortgage-lending standards are often described with a “pendulum” analogy. When the economy enters a downturn, the pendulum swings toward the conservative side. Banks tighten their credit requirements and underwriting standards for borrowers. Later, when the economy starts growing again, the pendulum swings the other way — toward an easing of criteria.

This is a pattern we have seen many times in the past. So, while FHA credit-score requirements have increased for 2020, it won’t always be that way. We will likely see some easing of lending standards later down the road, when the economy rebounds and the jobs come back.

Note: Every mortgage lenders has its own unique process and criteria for qualifying borrowers. Eligibility criteria are not standardized across the entire mortgage industry. Rather, they vary from one lender to the next. The only way to find out if you qualify for an FHA or conventional mortgage loan is to apply for one.

Источник: http://www.fhahandbook.com/blog/fha-credit-requirements-increased-2020/

Chase

Introduction

JPMorgan Chase and Co. is one of the nation’s oldest financial firms, tracing its roots to 1799 and the founding of the Bank of Manhattan Company. It bears the names of two of the most prominent firms in American banking history – J.P. Morgan and Chase Manhattan, which merged into a single company in 2000.

With $2.3 trillion in assets, it is ranked by Forbes magazine as the world’s largest publicly traded company. Despite the merger, it maintains two separate identities – the Chase brand for its consumer banking division, while the JP Morgan brand encompasses its investment banking and asset management operations.

The company ranks as the #3 mortgage bank in the United States, in both lending and mortgage servicing, trailing Wells Fargo and Bank of America, respectively, in both categories.

 

Mortgage Rates and Products

JP Morgan Chase offers a broad variety of mortgage products for both home purchases and mortgage refinancing. Fixed rate-mortgages are available in terms of 10, 15, 20, 25, 30 and 40 years. Adjustable-rate mortgages (ARMs) are available with initial terms of 1, 3, 5, 7 and 10 years, fully amortizing over 10 to 40 years.

The lowest mortgage rates are available on the mortgages with the shortest terms; for example, interest rates on 15-year fixed-rate home loan are considerably lower than those on the 30-year mortgages. Interest rates on ARMs are usually even lower, since the rates are locked in for a shorter term, although once the initial term is over they regularly readjust to a new rate based on the current mortgage market.

A special Chase program for first-time homebuyers, called DreaMaker Mortgage, offers down payments as low as 5 percent on fixed- and adjustable-rate mortgages of up to 40 years. Closing cost assistance may be available as well. Chase is also an authorized FHA lender, with fixed- and adjustable-rate mortgages are available for both first-time and repeat homeowners.

Chase also offers jumbo loans, which are mortgages that exceed the limits for conforming loans backed by Fannie Mae or Freddie Mac. Depending on where the property is located, those limits range from $417,000 to $729,750. Chase will make jumbo loans of up to $2 million; interest rates tend to run somewhat higher than on conforming loans.

One perk that Chase offers its customers is a 1 percent cash-back incentive for borrowers who sign up to have their mortgage payments automatically deducted from a Chase checking account. The incentive, up to $500 a year, can be paid out directly or deducted from mortgage principle. The option is only available at the loan closing and the borrower must have a Chase checking account set up at that time.

 

Refinancing

Refinancing a mortgage through Chase can enable a borrower to reduce their monthly payments, pay off their home loan faster or borrow against their home equity through a cash-out refinance. In most cases, you do not have to be a current Chase customer to refinance your mortgage through Chase.

For the most part, Chase mortgage refinance loans are identical to those offered for home purchasing. Both fixed- and adjustable-rate loans are available, over the same terms as those offered for home purchases. Often, the main difference is that instead of a down payment, the loan is partially secured by the borrower’s existing equity in the home.

The Chase 1 percent incentive for signing up for direct payments at the loan closing, described above, is available on refinanced mortgages as well.

For homeowners who normally would be unable to refinance because of a lack of equity in their homes, Chase is a participant in the Home Affordable Refinance Program (HARP). This program, backed by the federal government, allows certain creditworthy borrowers who have little home equity or are even “underwater” on their mortgages – owing more than their home is worth – to refinance at lower rates. Borrowers may also extend their mortgage term to further reduce their monthly payments or shorten it to pay their mortgage off faster.

To qualify for HARP, borrowers must have a conforming mortgage owned or guaranteed by Fannie Mae or Freddie Mac. Homeowners may need to be current Chase customers to obtain a HARP refinance through Chase. The program is set to expire at the end of 2013.

 

Home Equity Loans

Chase offers several options for homeowners who wish to borrow against their available home equity. This is often a popular choice for borrowers seeking money for home improvements, medical expenses, college costs, debt consolidation or other major expenses. Since home equity loans are a type of mortgage, the interest is typically tax-deductable, which offers an advantage over other types of loans.

A Chase home equity loan provides a lump sum of cash that is repaid over a period years at a fixed interest rates. Basically, it’s a second mortgage on your home. Interest rates tend to run somewhat higher than on a primary mortgage.

A Chase home equity line of credit (HELOC) makes money available as you need it. It works like a credit card secured with a portion of your home value as collateral. You can borrow small amounts as you need them, up to a pre-approved limit. Interest rates are lower than on a regular home equity loan and typically are variable. However, Chase allows you to lock in the rate on a portion of the money borrowed through a HELOC, with up to five separate locks allowed.

Another way to borrow against your home equity is with a Chase cash-out refinance. With this approach, you refinance your entire mortgage at a new interest rate, and take out some of your accumulated equity in the form of a cash payout. This offers the lowest interest rates of all home equity loan options and reduces the rate on your entire mortgage, so the savings can be considerable. However, the closing costs are typically much higher than on a home equity loan or HELOC.

Chase does not presently list reverse mortgages among its home equity products for borrowers.

 

Contact Information

The web site for mortgages and other consumer banking under the Chase brand is .

Customers seeking to inquire about a new loan or to refinance an existing one may call 800-873-6577 or visit a local Chase branch.

Calls about an existing loan or other customer care issues should be directed to 800-848-913.

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Источник: https://www.mortgageloan.com/

Chase Sapphire Cards Offering 100,000 Rewards Points if You Take Out a Mortgage

Credit card rewards stakes just got higher.

Last summer borrowers went gaga for Chase Sapphire Reserve, which offered lush perks and rich benefits neatly packaged in a fancy metallic design. Hundreds of thousands of people watched videos of other people opening the box the Chase rewards card came in. It proved so popular, especially among millennials, that Chase admitted that it lost $200 million in three months thanks to the card's $1,500 sign-up bonus, which the bank reduced in half a few months ago.

Chase is now trying to leverage its new customers with another huge carrot.

Holders of either the Chase Sapphire Reserve or the Chase Sapphire Preferred can now earn 100,000 rewards points (worth $1,500) if they take out a home mortgage with Chase before August 6. The offer is only for first-time home-buyers.

"These deals are part of why a card like the Chase Sapphire Reserve can give such lucrative rewards," says CreditCards.com's Matt Schulz. "Banks see them as a long-term relationship starter with a potentially very desirable customer.

The lifetime value to Chase of that relationship can be really, really high, especially if that strong credit card relationship can lead to other financial offerings, such as a mortgage."

The same isn't necessarily true for consumers, though.

Banks, like any business, make money by selling you stuff. They hope that if you like your credit card, they might be able to up-sell you on a mortgage, and then offer you a home equity loan, or a line of credit, and so on — even if the terms of those other deals aren't necessarily the industry's best.

They're banking on the fact that some consumers give into the convenience of one-stop shopping and may not have the time — or expertise — to shop around for the absolute lowest rate on a mortgage, especially if the one offered by their bank seems reasonable.

But how big of a difference could a fraction of a percentage point on a home loan make, really?

It turns out, quite a bit.

Let's say you were offered a 30-year $300,000 mortgage by Chase with a 4.125% interest rate, while your local credit union offers you a similar loan at 4.00%.

"You would save nearly $8,000 over the life of the loan by locking in the lower-rate option," says Nerdwallet mortgage expert Tim Manni.

First-time home buyers, then, cannot afford to take the easy way out and simply focus on a one-time reward, even if that bonus looks big. Rather than one-time bonuses, here's what you should focus on:

Credit Scores

Whatever rate you do get will be largely determined by your credit score. Many credit cards will give you your FICO score based on a credit report from one of the three main rating agencies in your monthly statement, along with what factors are hurting you. (For instance, you may be using too much of your credit limit.)

You can also you the Discover Scorecard, an online tool, to check your score for free. You don't need to own a Discover card.

Diversifying Your Financial Relationships

Just because you use one bank for your checking account or credit card, doesn't mean it's the right option for your mortgage. Cast a wide net when looking for the best rate, which means looking at everything form national lenders to local credit unions.

The Right Comparisons

Mortgage rates can shift throughout the day, so you need to compare mortgage rates from different banks at the same time. "Start by contacting three lenders Monday morning," says Manni. "By the end of the week, if you want to see how rates have changed, call the same three lenders on Friday afternoon."

 

Источник: https://money.com/chase-sapphire-reserve-mortgage-100000-points/
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