Ins And Outs of Obtaining a Mortgage
Mortgage, we all need at some point in life. But now a day, many people say that in the past it was easy to get a mortgage but now the process is really complicated and they reject almost everyone. Actually, this is not the case. Yes, the process has been changed a little, but if you know the ins and outs of obtaining a mortgage, you can easily get one.
Ability of the applicant
In the past that was not important, but now the landing companies see the ability of the applicant. Applicant should be able to pay the 20 percent down payment, other than the closing cost. It seems much, but it’s a rule.
Good Credit Score
Another important factor is the good credit score of the applicant. If it is more than 600 or so there are more chances that he can get a mortgage. So, check your credit history before you apply for the mortgage. If your history shows some errors, make sure you correct them before applying for the mortgage.
Income of the Applicant
It is considered as the most important factor, as it ensures that you can make your payments in time. If you have a secure source of income, you can get a mortgage easily. However, you can allocate only 28 percent of your income for the house.
The lending companies take many things in account. If you apply for the mortgage and the value of your home is more than the mortgage, they can give you loan. The reason is, if you fail to make payments, they can sell your house and get their money back. So, they prefer mortgage balance, when the value of home is greater.
Right Lending Company
Different companies offer mortgage to their customers. The important thing is to contact the right company, which offers easy installments, low interest rates and less down payment. You can read the company policy, before choosing one. You can get the information on phone or plan a meeting. Before applying you can tell them about your financial condition and they can tell you that how much mortgage you can get.
In short, if you have a secure source of income and have stable credit history you can easily get a mortgage. However, selection of the right lending company is also very important. If you know all ins and outs of obtaining a mortgage, things will be easier for you.