- Posted by: steve
- Category: mortgage facts
Are you getting approved for a mortgage? Don’t miss out on these 5 little known mortgage facts that everyone should know.
Since the housing collapse in 2012, getting a mortgage has become increasingly complex.
Gone are the days of simple processes, but that should not dissuade people. Mortgage rates change constantly, which is why anyone applying should be kept up-to-date.
First, be aware that all your past finances will be reviewed.
Here are 5 other little known mortgage facts that everyone should know!
Those who are self-employed will face more challenges when trying to borrow.
Income and employment history standards are more concrete, making the application process harder. Since many business owners write off most of their income, it will look as if they do not bring home any money.
2. Good Credit
If a borrower’s credit is good, it can save thousands.
Moving FICO score brackets can often yield a ton of savings.
Of course, this is again on a case-by-case basis. Not every person with good credit will receive the best, yet it is important to attempt to raise the overall credit score.
Some may even think no credit is better than any at all. In this case, without proper documentation that bills can be payed on time, how would banks tell?
3. Student Loans
Not everyone has student loans, but those who do are in luck.
For those burdened with student debt, attempting to get a mortgage is challenging for some. If a student’s loans are deferred, they can be excluded from the debt ratio
The thinking is that if the loans are deferred, then you must be a recent graduate — who will be landing a high-paying job soon.
4. Credit Before and After
People who are attempting to purchase a home for the first time are not the only people who have a mortgage.
Make a drastic change to your credit before closing ii detrimental. Lenders will pull credit again before closing.
If something small occurred, such as applying for a new credit card, it could end in a person not being able to qualify for an interest rate.
5. Down Payments
In this section, it is important to point that these mortgage facts are a broad topic and do not include everyone.
It is possible to make a low down payment on a mortgage. The industry standard has been roughly around 20% of a home’s selling price as a down payment on a mortgage loan.
Different lenders offer different rates. It is all dependent on location and situation.
Mortgage Facts and You
The most important fact is, New Florida Mortgage is here to help.
Need to shop options or compare rates? No problem, we’ve got you covered. Not only do our clients come first, but we’ve also got clients that will testify to that themselves.
Our mission is simple. New Florida Mortgage is here to offer professional and reliable services at all times. We aim to attract and retain quality, mortgage loan originators. We also offer useful, in-demand mortgage information to assist with the process.
For more information, do not hesitate to contact us for more information. For more helpful articles, check out our blog!