Welcome to 1 Step Home Mortgage
Low Interest Rates Home Mortgage Loans Us Article
This is a selection made from among articles on Low Interest Rates Home Mortgage Loans Us. 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
Low Interest Rates Home Mortgage Loans Us News
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...US mortgage rates fall to lowest level in decades (New Kerala)
Washington, Jan 1 : Mortgage rates for 30-year-fixed home loans in the US fell for the ninth straight week and to their lowest level in 37 years, according to a report released Wednesday by financier Freddie Mac.
Read more...Mortgage rates in US fall to lowest level in decades (EARTHtimes.org)
Washington - Mortgage rates for 30-year-fixed home loans in the United States fell for the ninth straight week and to their lowest level in 37 years, according to a report released Wednesday by financier Freddie Mac. The rate dropped in the final wee...
Read more...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...Housing crisis creates opportunities (The Telegraph)
After a significant slump in 2008, the home mortgage business appears to be entering 2009 on an upswing.
Read more...Many eager to pounce on mortgage rates (Richmond Times-Dispatch)
With mortgage rates at their lowest level in nearly four decades, Charlottesville-area mortgage companies are reporting a sharp spike in interest among homeowners wanting to refinance.
Read more...Bank expected to lower rates again (Tiscali)
LONDON (Reuters) - The Bank of England is expected to follow up December's 100 basis point rate cut with at least another 50 basis point reduction next week amid growing signs the economic downturn is gathering pace.
Read more...