Three Things to Consider when Financing a Home
Securing a mortgage these days is not an easy task. Getting approved is not a walk in the park
anymore, as only about three in ten get the green light. Standards are being tightened and as a
result, fewer people are managing to qualify. Whether you are seeking approval for
manufactured homes in Utah or condos in Connecticut, the process is becoming increasingly
rigorous. Here are some things to remember when starting the mortgage application process.
Higher Credit Score Requirements
Lenders are becoming increasingly cautious with the loans they give. Your credit score is one of
the most important things they look at. Years ago, you could secure a loan with a credit score as
low as 640. While this is still possible, it is extremely difficult. Having at least a 700 is almost a
requirement. If you do have a low credit score it will still be possible to get that loan, it may just
entail having higher fees. Consider taking some
time to repair your credit score before applying for
a mortgage. There are some ways to improve that
influential little number, but that is another topic.
Just understand that it may take time and sacrifice
to qualify for a home loan.
Proving Income and Assets
Another issue of which you should be aware is the
ordeal of proving your income and assets. These
days, lenders will want abundant proof of your
income and assets. When you are filling out your
application, be sure to have proper documentation for just about everything. The mortgage
company will check and double check your application. If anything looks fishy, it will be denied.
Be aware that home appraisals are tending to come in on the low side. Do not overestimate the
current value of any property you may own as its appraisal could turn out to be lower than you
Be Aware of the Requirements
Be sure to do your homework. Read up on mortgage requirements. Figure out the different
guidelines for each lender. Understand that the requirements that lenders set up are also subject
to alteration. Sometimes, they can be somewhat vague or even unspoken. Take a lot of time
figuring things out. Be sure that you comprehend your own circumstances entirely. Knowing
your financial situation is half of the battle. In the old days, all you needed was a decent credit
score and a steady job. This is not the case anymore, so be prepared for rejection. You can avoid
disappointment be comprehending where you stand. Something as important as buying a home
deserves to be well-planned researched.
Don’t Get Discouraged
It just isn’t as simple as it used to be, but don’t get discouraged. Keep working on your credit
score and keep researching ways to improve your eligibility. With hard work and perseverance,
you will qualify eventually. After all, it is your future home at stake. In the end, all of the work
will be worth it when you are living in your own home! Remember these tips when you begin
your mortgage process!