It can be hard to stay on top of the changing real estate market from day-to-day. As a matter of fact, there are more available mortgage products out there than ever before for many kinds of homebuyers. If you’re wondering how you can take advantage of easier lending opportunities and strike while the iron is hot, here are some things to consider.
Take Care Of Your Credit
While many regulations on mortgage applications may have been loosened in recent years, having a better credit score will still enable you to qualify for a mortgage much easier. Instead of risking it, ensure that you’ve obtained a copy of your credit score and are aware of where you stand as a financial risk. By working on your credit and correcting any errors on the report, it will be that much more likely to have your mortgage application approved.
Saving For A Down Payment
It’s often said that 20% is the ideal amount to put down in order to avoid private mortgage insurance, but it’s not the required amount in order to invest in a home. While it may save money in the long run to put more money down, there are many opportunities for putting a lot less down and still being able to purchase. You may want to hold off until you can save up for your down payment, but possibilities do exist for mortgages with as little as 3.5% down.
Dealing With Closing Costs
Saving up for a down payment and deciding to invest in a monthly mortgage payment is a significant commitment. Adding mortgage closing costs to that can be a bridge too far for many potential homebuyers. Fortunately, many lenders are offering the opportunity for closing costs like origination and attorney fees to be included in the total cost of the loan. While this will bump up the amount of your monthly payment, it can make a mortgage more feasible from the start.
For many people, there’s a lot of stress that goes along with applying for a mortgage, but with lower down payments required and closing costs included in the total price, getting approved has become a lot easier. If you’re currently in the market for a new home, contact us for more information.
