Oil prices are up to $111 a barrel and the European Central Bank raised its rate slightly on inflation concerns. Other central banks in England and Japan did not change their rates as the ECB did. The ECB rate hike came one day after Portugal officially request a bailout package. Time will tell if the rate hike was premature. Economists do not think that the Fed here in the US will be hiking rates any time soon.

A gallon of gas is averaging $3.74 in the US.

Your credit score will have an impact on the cost of financing for a purchase or a refinance. A score of 740 or higher is where the lenders have placed the best priced rates with respect to credit score. While other factors play a role in the rate prices available to you, such as the amount of equity in the home and your debt to income ratios, the credit score is a major factor.

The asset portion of the application is another critical piece of the puzzle. At the time you apply for your mortgage, lenders want to see evidence of sufficient liquid assets to close your loan. For a refinance, this may include out of pocket expenses such as closing costs, discount points, escrow funds for tax and insurance and any principal reduction.

Providing your current paystubs is just one of the income requirements that lenders are looking for. When you apply for a mortgage, the lender will want to make sure that as of the application date you are a qualified borrower. You will most likely need to provide copies of your most recent paystubs covering the latest 30 day period. They must confirm sufficient income to qualify for the loan and indicate year-to-date totals as well.

If you are in the process of buying a home and now need to secure financing, you should be well prepared when you make your decision. The mortgage you are about to apply for may very well be the largest transaction you will be involved with. Sticker shock, this will make a car loan feel like child’s play.