How to Get a Mortgage for Buying a Home

Universal economic conditions such as; employment rate, property prices and inflation or recession control the mortgage purchase market. A borrower may find it difficult to avail a favourable mortgage deal in present market conditions. We encourage you to follow these tips in order to acquire an advantageous mortgage proposition.

Build up your Credit Rating

A good credit record is a key factor in getting a mortgage with a low interest rate. A lender looks closely at an applicant’s credit report to ascertain their capability to make the monthly repayments of the loan. Any instance of negative credit history such as a late payment on a credit card may put off a lender from delivering a good mortgage package. Because a lender looks back into your credit history, it is important to develop your credit rating long before applying for a mortgage.

Arrange for a Large Deposit

A borrower needs to put a deposit towards the price of the home. A deposit of 20% of the home price can open up a better mortgage rate than a deposit of 15%. It is essential to keep aside money for the deposit. In addition, the borrower will be required to pay closing costs and other expenses. A cautious borrower will set up a fund for this purpose.

Hunt around for the Best Deal

It is inadvisable to close a mortgage deal in haste when buying a home. Take some time in looking for a suitable package. An effective way to study a wide assortment of mortgage deals is to take on the services of a reputable broker. A resourceful broker has numerous loan options at hand. In addition, they may be able to provide valuable advice and information ensuring you decide on a package most suited to your needs.

Look Further than the Initial Rate

A mortgage product with a low initial interest rate might tempt you to accept the deal. However, a low rate should not be sole deciding factor. A borrower should take into account other factors including; set up fees and interest rates towards the later period of the loan. It is worthwhile considering a mortgage with a rate of interest higher than those of other packages. The deal may offer certain advantages such as forthcoming payment holidays, offset facilities and early repayment without incurring any penalties. Judicious consideration may procure the best possible mortgage option for when purchasing a house.

Deciding on an Escrow Account after a Refinance

The monthly mortgage dues of a borrower consist of homeowner’s insurance, private mortgage insurance and property taxes apart from the mortgage principal and interest payments. Lenders require that you pay the insurance amounts and the property taxes in an escrow account held by a third party called escrow services....

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HUD Guidelines for Manufactured Homes

A set of directives prepared by the Department of Housing and Urban Development (HUD) may have served to enhance the quality of manufactured homes. Homebuyers are quite willing to apply for mortgages for this highly affordable quality of housing. Here are the key guiding principles put forward by the...

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