Mortgages will be the biggest financial responsibility of your life if you decide to take one out. However, everyone needs a little guidance and advise before taking one out. This article will provide a brief guide on how to achieve that all important mortgage approval.
A mortgage is a loan to finance the purchase of real estate usually with specified payment periods over a period of time. The borrower gives the lender
(usually a bank) lien on the property as collateral for the loan. Mortgage lenders are traditionally banks. However, the mortgage process itself may be a difficult one, especially to those with a poor credit rating. This article will discuss how to get a mortgage at the best rate for you and how do you qualify.
How to qualify for a mortgage When you approach a bank for a mortgage, expect them to go through a long list of questions, and in particular, the questions are always regarding your current financial state. What can you expect? Generally, they will want proof of the following: All banks want to feel secure that you're able and responsible enough to pay them back. So, you'll usually need these things in order for the bank to give you a loan: - Down-payment money available (3 to 20% of the purchase price) - Employment of two years minimum (same job or field) - Suitable credit score (~660+, as of 6/09) 2010-2011 - İncome that can meet the mortgage repayments However, if you do not meet the above requirement, do not panic. There are many online mortgage applications for those with poor credit. Always check the interest rates as they may be higher for you. The APR always indicates what interest you will be paying back on top of your mortgage repayments. Try the following if you fail to meet the above criteria: Meet with a lender anyway. Don't just assume you can't get a mortgage. Try for a low-doc or no-doc loan. A mortgage broker represents lots of different lenders, so they can shop around to try to find one who will make you a loan. Try to get the owner to finance all or part of the cost of the home. Get a co-signor. See if a family member or very close friend with a higher income and better credit than yours will cosigna loan for you. Have a friend or family member buy the house, and rent-to-own it from them.