The ONE big purchase any person makes is a home. Buying the perfect home remains the number one priority for most people. The best way to buy a home is with a home loan issued by home loan banks. Let’s have a closer look at the requirements that need to be fulfilled in order to realize your dream of a home.
How to Get a Mortgage Home Loan?
Types of Mortgage Loans
First, you need to know the type of mortgage loan that will suit you best. Here are a few to consider:-
Fixed-Rate Mortgage – As the name suggests, the rate of the interest is fixed. The advantage with this type of home loan is you can lower payments by choosing a longer term for repayment.
Adjustable-Rate Mortgage – In this type of loan, you pay a fixed rate of interest for a set number of years (the most common being 5, 7 or 10 years). After this period, your interest rate is variable.
FHA Mortgage – This mortgage is insured by the government and requires only a small down payment – as low as 3.5% of the total value.
Home Affordable Refinance Program – This mortgage allows people to refinance their existing home loan, with a lower monthly payment and move to a fixed interest rate.
Requirements to Qualify for a Home Loan
- Employment – You need to have documented steady employment or a profitable business
- Credit Score – A good credit score is the first thing lenders check before qualifying you for a loan
- Documentation – All your financial documents need to be in good order
- Collateral – Though not a necessity, collateral property makes getting a mortgage easier
Tips to Qualify for a Mortgage Loan
1) Save Up
If your dream is to be a home owner, start saving money as early as you can. Make sure a certain amount of money from your paycheck goes towards your savings on a regular basis. Showing regular savings for an extended period of time can help secure a mortgage. The bigger the down payment the smaller the mortgage loan amount will be.
2) Improve your Credit Check
Check your credit score before applying for a loan. Your credit determines what type of loan and interest rates you will qualify for. Make sure you pay all bills on time especially credit card and student loans, etc. If possible make additional payments to pay credit cards, car and or student loans off as soon as you can.
3) Acquire Assets
If you have a healthy asset balance, getting a mortgage loan will not be difficult. In fact, some assets can be used as collateral in getting loans.
Use the Online Mortgage Calculator
A online mortgage calculator is the best way to calculate the amount of loan you are eligible for. It is easy to use and gives you an accurate figure of the mortgage rates that will apply to your loan.
Acquiring a mortgage loan can be a tedious task. However, you can utilize the services of professional mortgage company like Drew Mortgage Associates. Drew Mortgage Associates are a Boston-based company that’ll not only help you acquire a mortgage loan – they’ll also help you plan your financial goals. Our home loan originators will get you the best mortgage without you having to compromise on your lifestyle.
To get in touch with us, call 1-877-949-3739 or 1-877-WHY-DREW or visit our website www.drewmortgage.com