New Home Loan
Obtaining a new home loan cannot be compared to buying a slurpee at the 7-Eleven. Intelligent planning, hard work, and persistence are required when purchasing a new home. If you understand the steps necessary, you can shorten the home buying process considerably. I am hopeful that this information will assist you when trying to obtain a new home loan.
If you do not already have a job, securing employment should be the first thing on your list. . Some individuals may apply for a home loan based on an inheritance that they have received from a wealthy relative. Lenders may look on this unfavorably as there is no proof of long term financial security.
It is important to make sure your taxes are filed. To qualify for a new home mortgage loan, you will need to supply pay stubs and tax returns. This requirement has become more stringent during the difficult economic conditions of the last two years. Fraud was a serious problem in the most recent real estate bull run, which has caused lenders to become more cautious.
Gather a nest egg. You can expect to be required to put down a 3.5% down payment on even the most liberal of loans. At the present time that would be the FHA loan. New home loans with 100% financing are a thing of the past, and probably will not be seen for several years to come. Other loan options will look for approximately 5 – 10% down, if you are unable to qualify for an FHA home loan.
Be sure that your credit is in order. Completely paying off your credit cards will go a long way to repair your credit rating. High credit card balances can wreak havoc on your credit score. carrying debt on your credit card accounts can influence your credit score up to 255 points! Ouch!
Mortgage loans and new home loans have much in common. Whether the home that you plan to purchase is a few years old, or brand new, does not really matter much to the bank. The bank generally looks at the value of the home.
It might be tempting to try to bypass the home loan procedures, but that could cause complications. If you are not prepared to supply a down payment, then you are really not prepared to buy a home at this time. If you are not employed, then you should not be attempting to purchase a home. It is important to plan carefully so that this home buying experience will be successful.