Posted by Ed Garcia on January 08, 2001 at 24:04:47:
Lisa,
Lets see if I can accommodate you in the order to which you’ve asked your questions.
LISA
First I would like to thank you to the response to my “I sniff a bargain, is it true” post.
ED
You’re more than welcome
LISA
You mentioned 100% financing. Question: Are these loans at an higher interest rate?
ED
YES, but its well worth it. Think about it Lisa, it’s cheaper to pay a little higher interest for a year or two, then it is to come in with 10% down or more. Lisa, I have one program where the lender will even allow the seller to pay up to 6% closing cost for the buyer.
LISA
Secondly, I ran into the Heritage Plaza website out of CA., is this your company?
ED
NO. When I started my company back in 1980, I started it as Heritage Funding. When I incorporated it within 8 months, I incorporated under the name of American Heritage Financial Corp. “American Heritage” is still active, but I’m a net branch of Independent Mortgage as well and can do loans in 42 States.
LISA
Another Question unrelated: I have heard that whenever you apply for a loan, or pre
approve, that since this is recorded on your credit report, that applying to too many at one time can hurt your credit rating. Is this true?
ED
What they are talking about Lisa, is that each time a company inquires about you on the credit bureau, it shows up as what we call an inquire. The credit bureau deducts 3 to 5 points per inquire from your credit score. The concept is that you are out trying to obtain financing, and may be pyramiding your credit.
Ed Garcia