Welcome to 1 Step Home Mortgage
Home Mortgage Finance Rate Article
This is a selection made from among articles on Home Mortgage Finance Rate. For a permanent link to this article, or to bookmark it for future reading, click here.
How To Qualify For A Home Mortgage Loan
from: Jeff SlokumAre you considering applying for a mortgage loan to purchase your first home? If so, you should read the following tips below that will make the process easier!
If You Have a Good Credit History It Is Easier To Qualify For a Mortgage
By far the easiest way to qualify for a home mortgage loan is by establishing a good credit history. To establish a good credit history you need to be able to demonstrate responsible repayment of smaller loans, such as credit cards and car loans. The building of your credit history begins the day that you put the very first debt into your own name. For many Americans, this is at the age of eighteen.
Have a good solid credit history, shows the home mortgage lender that you take financial responsibility seriously. This makes you, what the lender terms, a low risk borrower. That is to say that you as a borrowers are a relatively low risk in comparison to other borrowers.
In return for your good credit history, the lender will approve your home mortgage loan application. In addition, he will offer you a lower interest rate on the loan than would be offered to other borrowers who are classified as high risk.
However, if your credit history is not as strong as you would like, that doesn’t mean that you will have to give up on getting a home mortgage loan. There are other things that you can do to increase your chances for mortgage approval.
Save a Sizeable Down Payment
Having a substantial down payment on the home that you wish to purchase and applying for a smaller home mortgage loan is another way to increase your chances of getting mortgage approval. Again, this goes back to the risk involved to the lender for financing your loan.
Many mortgage lenders will require that you have a 20% down payment on the home, and then they will grant mortgage loan approval for the remaining 80% of the purchase cost. This helps to offset the lender risk. In the event that you are unable to keep up with monthly mortgage payments and you default on the loan, the lender will have a better chance of recovering his money through foreclosing on and selling the home if the loan is a smaller percentage of the market value of the home.
Therefore, if you can save 30% or more towards a down payment on your home, you will be lowering the risk to the lender and increasing your chances of getting mortgage approval.
You May Have To Accept a Higher Interest Rate on Your Mortgage Loan
If you wish to secure a mortgage despite your bad credit history, and you do not have a sizeable down payment saved up, you may have to agree to a mortgage at a higher interest rate than that which is being offered to low risk borrowers. This is because the lender will want to be compensated for his increased risk level.
This should not necessarily prevent you from taking the loan, though. If you secure the mortgage and are diligent about making timely payments, after paying on it for awhile you will improve your credit history. Then you can refinance the mortgage at a later date with a better rate offer.
About the Author
This article provided courtesy of http://www.2nd-mortgage-guide.com
Home Mortgage Finance Rate News
Fed Focuses on Consumer, Corporate Rate Spreads Over Treasuries (Bloomberg)
Jan. 6 (Bloomberg) -- Federal Reserve officials are focused on driving down the spreads between U.S. Treasury yields and consumer and corporate loans, after cutting the main interest rate to almost zero failed to revive lending.
Read more...New Year's Resolutions: Fix Your Finances (PC World via Yahoo! News)
If your New Year's resolutions concern improved money management, you're in luck: This past year saw the introduction of several new Web-based personal-finance sites and useful upgrades to older ones. Almost all are free, supported by marketing tie-ins to various offers that might help in your endeavors--a credit card with a lower interest rate, for example, or a favorable mortgage refinance.
Read more...Nokia Cut At WestLB, Exchange-rate Trends Cited (Fox News)
Nokia Cut At WestLB, Exchange-rate Trends Cited
Read more...Jumbo mortgage loan rates put damper on refinancing (Boston Globe)
While plunging mortgage rates have spawned a frenzy of refinancing, borrowers with larger, so-called jumbo loans are still seeing interest rates in the 7 percent range, prompting many to abandon refinancing plans altogether or resort to creative transactions.
Read more...Report says N.D. housing affordability gap widening (Grand Forks Herald)
FARGO - Julie Lovaas rented for years before buying a fixer-upper house on Fargo's south side four years ago. The 48-year-old Kmart cashier said making the $900 monthly mortgage payment wouldn't be possible without the paycheck brought home by her husband, a welder and pipe fitter.
Read more...Home Refinancing Is Up In The Triangle (NBC 17 Raleigh)
The weak economy has driven interest rates to record low levels, which has caught the eye of some homeowners looking to refinance. Here in the Triangle, refi’s are up because there's still plenty of money out there to lend; but there's a catch. Mortgage officers say the criteria is tighter and lenders aren't offering specialty products like no income loans anymore. In other words, they're ...
Read more...Fixed-Rate Mortgage Rates Post Decline (Fox News)
Fixed-rate mortgage rates declined in the week ending Wednesday, with the 30-year mortgage rate at its lowest level at least since tracking began in 1971, mortgage giant Freddie Mac (FRE) said in its weekly survey.
Read more...