How to Up Your Odds of Getting a Mortgage
Maybe you have found that house that you have been dreaming of and are now talking to banks about giving you a mortgage. If your credit isn't that great, you may be scared that you won't get approved. You want to increase your odds of getting a mortgage, because without one there is no way that you can afford a house. How are you supposed to up your odds of getting a mortgage exactly?
Do Your Homework. The first step is to do your homework and figure out what your history is. When you are doing your homework, make sure you get your credit score. This is going to tell you how good or how bad your credit is, and this is the number that banks use to determine what type of risk you are. If you are high risk, you are going to have a harder time finding a bank or a mortgage company that is going to lend to you. If your credit score is good, you are going to find it really easy to get a mortgage and you are going to have a lot of bargaining power.
Know where your money is going to. When you go in to talk to banks, take a copy of the budget that you drew up that shows exactly how much you are currently spending on renting a house and how much you would pay with your mortgage payment. When banks find out that you are able to afford the mortgage payments they are going to be more likely to approve the application.
Have a Down Payment. A lot of first time buyers don't have the twenty percent required for a down payment on their mortgage. This is going to be a problem if you have bad credit because a lot of banks aren't going to want to take the risk. By saving up and having enough of a down payment, you are going to increase your chances of approval.
Ask someone to be your cosigner. If your mortgage is less than perfect, your bank may require you to find a cosigner to sign the mortgage papers with you and put his house on the line for you. Having a cosigner is going to definitely help you to get a mortgage loan. Finding someone who is willing to cosign the loan papers for you might be difficult to do because it is very risky for them.
Research the real estate market. You are going to have a better chance of getting a mortgage if you are planning on buying a house in a hot market. If you are going to buy something in a market that is cooling down, you are probably going to find a lot of banks aren't willing to give you a mortgage on a property that is going to decrease in value.
Find out about your neighborhood. Some bank officials are going to ask you about how much houses in the neighborhood sold for in the past. When they find out that you know how much your future neighbor's house sold for three years ago, they are going to be impressed and give you the loan
It is more and more difficult to get a mortgage in this tight economy. These six tips will help you to get a mortgage and move into your dream home.
Do Your Homework. The first step is to do your homework and figure out what your history is. When you are doing your homework, make sure you get your credit score. This is going to tell you how good or how bad your credit is, and this is the number that banks use to determine what type of risk you are. If you are high risk, you are going to have a harder time finding a bank or a mortgage company that is going to lend to you. If your credit score is good, you are going to find it really easy to get a mortgage and you are going to have a lot of bargaining power.
Know where your money is going to. When you go in to talk to banks, take a copy of the budget that you drew up that shows exactly how much you are currently spending on renting a house and how much you would pay with your mortgage payment. When banks find out that you are able to afford the mortgage payments they are going to be more likely to approve the application.
Have a Down Payment. A lot of first time buyers don't have the twenty percent required for a down payment on their mortgage. This is going to be a problem if you have bad credit because a lot of banks aren't going to want to take the risk. By saving up and having enough of a down payment, you are going to increase your chances of approval.
Ask someone to be your cosigner. If your mortgage is less than perfect, your bank may require you to find a cosigner to sign the mortgage papers with you and put his house on the line for you. Having a cosigner is going to definitely help you to get a mortgage loan. Finding someone who is willing to cosign the loan papers for you might be difficult to do because it is very risky for them.
Research the real estate market. You are going to have a better chance of getting a mortgage if you are planning on buying a house in a hot market. If you are going to buy something in a market that is cooling down, you are probably going to find a lot of banks aren't willing to give you a mortgage on a property that is going to decrease in value.
Find out about your neighborhood. Some bank officials are going to ask you about how much houses in the neighborhood sold for in the past. When they find out that you know how much your future neighbor's house sold for three years ago, they are going to be impressed and give you the loan
It is more and more difficult to get a mortgage in this tight economy. These six tips will help you to get a mortgage and move into your dream home.
posted by Debt Consolidation Loan at
6:09 AM
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