Making Mortgage Work: Tips for Financing Your New Home
Saturday, January 25, 2014, 1:00 AM | Leave Comment
Going through the process of financing a home is not the same as it used to be several years ago. Due to many changes in the banking and finance industry, obtaining home financing has become more difficult, and much more restrictive.
However, there are programs available to assist in making the experience of a new home purchase a little easier.
Here are a few tips to help you be in the right financial place to get the best possible mortgage for you and your family.
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Credit Requirements
The first step in qualifying for a great loan is your credit score. Most finance companies want to see a credit score of at least 620, before they will consider you for financing.
In addition, the finance company will want to see a minimum of three active trade lines on your credit report in good standing.
Once you begin the mortgage application, it is important not to apply for new credit, or to make big purchases on your credit cards until the loan is closed.
The finance company will review your credit again before closing your loan.
If your credit profile has changed, it could cause delays, and extra work for you in the mortgage process.
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Other Assists
Do you qualify for special loans, or are you a veteran or service worker?
Check the web for places like www.lowvarates.com for what you might be eligible to use on a house payment.
This is one of the best advantages of your work in service.
In many cases, there is no down payment required for a VA mortgage, and you can receive 100% financing for your home.
Plus, you can still get an amazingly low interest rate with the 100% financing option.
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Bank Reserves
While you might not be required to pay anything down to purchase your new home, the bank will probably require you to have some savings in the bank.
This is to demonstrate your financial stability and your ability to keep paying your mortgage in the event of a financial hardship.
Many lenders look for approximately two months of mortgage payments in reserves, and they like for the money to be in your account for at least a couple of months prior to the mortgage application.
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Employment Requirements
If you are active military, you probably will not have an issue in this department.
However, if you are working in the private sector, the mortgage company will most likely want to see two years of continuous employment.
The employment does not have to be with the same company, but it does help if the employment is in the same industry.
Make sure you understand all the agreements and stipulations required on LowVARates.com.
By following these simple tips, you will hopefully be in the perfect financial situation to qualify for the best rate available with your mortgage loan.
Your dream of becoming a homeowner and taking part in the American dream can easily be done with these tips for gaining your first mortgage loan.
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