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Thursday, January 1, 2009
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 research. The very first thing you want to do is to figure out what your financial history is. If you don't know it, you are going to want to get your credit score. This score is going to tell you whether your credit is good or not and is the number that banks look at to determine if you are a high risk or a low risk. If your score is not that great, you may find that it is difficult to find a bank that is willing to lend you the money that you need. On the other hand if your score is great, you will find that banks are fighting for your business and may even offer you special deals to take out your mortgage with them.
Budget your money. Show banks that you go to your budget, which is going to illustrate how much money you are currently paying for housing and how much you would pay with a mortgage. When you show the banks that you will be saving money by buying a house and that you can afford it, they will be more likely to approve your application.
Don't forget about your down payment. Most people buying their first home don't have a big enough down payment saved up. Unless you have a perfect credit rating, a lot of banks aren't going to want to take the risks if you don't have enough money to invest in the house. To improve your chances of getting approved, save up at least 20% of the price of the house before applying.
Find a cosigner. When your credit is not so great, a lot of banks are going to ask for a cosigner, which is someone who is going to put their house and mortgage on the line in case you don't pay. If you have someone who will do this for you, this is going to drastically increase your chances of getting that mortgage. A lot of people are going to be reluctant to cosign for you if you are fiscally irresponsible.
Learn about the real estate market. You may not know this, but you are going to get a better mortgage when the real estate market is sizzling hot. A lot of banks are going to hesitate when loaning money in a cooling market because property values could decrease significantly.
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 research. The very first thing you want to do is to figure out what your financial history is. If you don't know it, you are going to want to get your credit score. This score is going to tell you whether your credit is good or not and is the number that banks look at to determine if you are a high risk or a low risk. If your score is not that great, you may find that it is difficult to find a bank that is willing to lend you the money that you need. On the other hand if your score is great, you will find that banks are fighting for your business and may even offer you special deals to take out your mortgage with them.
Budget your money. Show banks that you go to your budget, which is going to illustrate how much money you are currently paying for housing and how much you would pay with a mortgage. When you show the banks that you will be saving money by buying a house and that you can afford it, they will be more likely to approve your application.
Don't forget about your down payment. Most people buying their first home don't have a big enough down payment saved up. Unless you have a perfect credit rating, a lot of banks aren't going to want to take the risks if you don't have enough money to invest in the house. To improve your chances of getting approved, save up at least 20% of the price of the house before applying.
Find a cosigner. When your credit is not so great, a lot of banks are going to ask for a cosigner, which is someone who is going to put their house and mortgage on the line in case you don't pay. If you have someone who will do this for you, this is going to drastically increase your chances of getting that mortgage. A lot of people are going to be reluctant to cosign for you if you are fiscally irresponsible.
Learn about the real estate market. You may not know this, but you are going to get a better mortgage when the real estate market is sizzling hot. A lot of banks are going to hesitate when loaning money in a cooling market because property values could decrease significantly.
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 Credit Counseling at
6:08 AM
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