Understand the Mortgage Process to Make Buying a Home Easy
When buying a home, mortgage lenders tend to be very strict on whether or not they will allow you to take a loan for a mortgage as a result of the recent housing bubble and consumers defaulting on loans. If the lender that you are speaking with is asking a lot of questions, don’t panic! Usually they are trying to figure out ways to assist you in getting the best possible mortgage rate.
When working with a lender, you must first educate yourself on the standards that they are going to be looking at when it comes to whether or not they will provide you with a mortgage. Mortgage lenders are chiefly concerned with your ability to repay the mortgage. To determine if you qualify for a loan, they will consider your credit history, your monthly gross income and how much cash you’ll be able to accumulate for a down payment. Once those factors have been explored and you have been approved for a loan by one of the mortgage lenders, be sure to prepare yourself for buying your dream home. Be sure to also keep in mind some essential questions to ask yourself when deciding to seal the deal. Unsure of how much you can afford? Check out the Homes.com Mortgage Calculator.
When it comes to getting a mortgage, the good news is that lenders are finally relaxing lending standards, which could significantly increase housing demand. The median FICO score for approved mortgages has fallen from 750 to 729 in the past 12 months and 30% of closed loans had an average FICO score below 700 in November 2013. Closing rates in November also improved significantly over October, according to Ellie Mae’s November 2013 Origination Insight.
Once you’ve secured a mortgage and the deal is closed, you’ll finally be able to move in and enjoy your new space. However, before you get to that final step, it is crucial to ensure that everything is aligned in such a way that will be rewarding to you and your family in the long run. For additional insight, be sure to connect with a real estate professional in your area or on the Homes.com Q&A channel.