Currently viewing the tag: "getting a mortgage"
This post is not about those with marginal credit. While credit improvement is absolutely necessary if you have negative credit, and I will offer insight about that, this post is geared toward the average credit borrower. Those consumers whose credit score currently ranks somewhere between 640-720. There are some major benefits in the world of mortgage banking and getting a mortgage in Minnesota today if you’re willing to do a little work on your credit score.
Whether you’re thinking about buying a home now or a year from now, the right time to visit with a mortgage professional about your financial situation and is as early as possible. Our objective is to make the home loan process and getting a mortgage as seamless as possible for you. There are some sure fire ways to make it more stressful and we would rather speak with you before you make some common mistakes that could make getting a mortgage more challenging.
I often write about the things to do when you’re preparing for a mortgage and was recently reminded of the importance of pointing out the “DO NOT” do items. These are items that could prevent you from closing on your home, or best case scenario cause you additional paperwork and detail that you need to provide in order to gain a loan approval. Whether you’re a first time home buyer or an experienced home owner, this list is important for you because the rules of the mortgage game have changed in recent years. Knowing the rules and how to work inside them can make a big difference for you.
If you had some credit challenges during your unemployment period, don’t give up. It’s a period of rebuilding for many and I completely understand and appreciate that fact. If advised correctly, you can absolutely be in a position to buy a home and getting a mortgage isn’t out of reach. Even following tough times with unemployment and late payments associated with your lack of income, we are able to pre-approve clients who have shown that they’ve reestablished their financial stability. It simply may take a little bit longer than if you hadn’t had late payments.
You’ve just started the process of looking for a home in today’s real estate market and whether you’re a first time home buyer or a seasoned home owner moving up, some things have changed or, they just look a little bit different than they used to look. Here are some common terms as you start the process of buying a home or getting a mortgage today:
Whether you’re a first time home buyer or a home buyer who owns a home now or has in the past, your credit will impact what mortgage loan terms you are offered today and some simple things can take you from a, “not yet” to a simple yes, bring you into qualifying for programs you otherwise wouldn’t, or could save you .25-.50% in interest over a 30-year term. Yes folks, today, credit matters in a way it hasn’t in the past. If you pay attention, you can save thousands of dollars and maybe even a serious headache or two.
I never want someone to discount themselves due to credit score alone, but it is a very important part of today’s mortgage lending environment and credit score is something everyone should be in tune to before they jump into the home buying process. I preach, every month in our first time home buyer class that even if you’re looking to buy a home a year from now, checking your credit out today is the best first step.
In today’s market, Contract for Deed sales are becoming more popular again because there are a large number of buyers who are unable to finance using traditional financing means through a mortgage company. Quite possibly, there could have been a short sale or foreclosure that is preventing them from financing, but everything else looks perfect.
There’s been a lot of fodder surrounding the new legislation that will require 20% down payment for homebuyers. This is not that cut and dry and of course, our legislators are not looking to require all homebuyer’s meet a 20% down payment on a home.
Luckily, the experts at MN Home Loan Partners can help you navigate through the maze! For the sake of this blog post, we will focus mainly on assets and how those play into your mortgage prequalification.
Watch this video for information on the upcoming First Time Home Buyer Class
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