People looking for a real estate mortgage in today's current economic climate are discovering that there are many more hurdles to getting a mortgage today then there were just a few years ago. Gone are the days of the subprime mortgages and buying a home with a very low down payment. Banks and other lenders are tightening up their qualifications for who can get a real estate mortgage. There is still financing to be had out there, but it's now a matter of making sure your personal finances are in order.
If you are in the market for a real estate mortgage, the good news is that many banks and other institutions are still lending to people with high credit scores and can put down a substantial down payment. Banks and mortgage companies will look favorable on people who can put down at least 20% on the home purchase and have a credit score above 750. If you are in this range, and have a steady income, chances are you can still get approved for a mortgage.
If you are in the hunt for a real estate mortgage, the best thing to do is enlist the services of a mortgage broker. For a fee, they will search for different financial institutions that will give you a mortgage based on your finances and your credit score. They can often find several sources for you so you can choose between competitive rates and get the best rate that will work out for you in the long term.
While traditional banks may be making it harder to get a real estate mortgage, other financial institutions such as mortgage companies and even some government agencies are willing to provide financing if your financial house is in order. This is why it is so important to obtain a copy of your credit report and know where you stand before you apply for financing. Sometimes credit reports contain errors which can be corrected and can improve your chances of getting approved.
Be prepared for a long and arduous process of getting approved for a real estate mortgage. You will probably have to approach dozens of lenders before you find one or two that will give you financing. If you do some legwork and have many irons in the fire, chances are you will find financing from some source provided that you have looked far and wide.
With today's real estate market in distress, it may be harder to get a real estate mortgage. You can survive and thrive in this climate provided you have good credit and have put aside enough money to make a substantial down payment. The more favorable your circumstances, the better the chance you can get a real estate mortgage.
If you are in the market for a real estate mortgage, the good news is that many banks and other institutions are still lending to people with high credit scores and can put down a substantial down payment. Banks and mortgage companies will look favorable on people who can put down at least 20% on the home purchase and have a credit score above 750. If you are in this range, and have a steady income, chances are you can still get approved for a mortgage.
If you are in the hunt for a real estate mortgage, the best thing to do is enlist the services of a mortgage broker. For a fee, they will search for different financial institutions that will give you a mortgage based on your finances and your credit score. They can often find several sources for you so you can choose between competitive rates and get the best rate that will work out for you in the long term.
While traditional banks may be making it harder to get a real estate mortgage, other financial institutions such as mortgage companies and even some government agencies are willing to provide financing if your financial house is in order. This is why it is so important to obtain a copy of your credit report and know where you stand before you apply for financing. Sometimes credit reports contain errors which can be corrected and can improve your chances of getting approved.
Be prepared for a long and arduous process of getting approved for a real estate mortgage. You will probably have to approach dozens of lenders before you find one or two that will give you financing. If you do some legwork and have many irons in the fire, chances are you will find financing from some source provided that you have looked far and wide.
With today's real estate market in distress, it may be harder to get a real estate mortgage. You can survive and thrive in this climate provided you have good credit and have put aside enough money to make a substantial down payment. The more favorable your circumstances, the better the chance you can get a real estate mortgage.
About the Author:
Jannette writes about real estate financing and te real estate market. She also writes about makelaar valkenburg and nvm makelaar in Dutch.
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