There has been so much information on the news lately about the housing crisis. Is it impossible to obtain a real estate mortgage in these troubled times? The answer to that question is no. Real estate mortgages can be tougher to obtain for some persons with a poor credit history, but if you have decent credit, mortgages are still available. It is a good idea to obtain credit reports from all three credit bureaus, and fix any errors that may be present.
Having a nice down payment can also increase your chances of obtaining a real estate mortgage. The more money that you have as a down payment the lower you monthly expenses will be. Lenders are also more comfortable lending if the borrower has money invested in the loan.
Also, don't let the temptation overtake you to lie to your lender and over inflate your salary, job title, or other vital information. You will be found out during the loan process, and lenders will be less comfortable in giving you a loan.
With interest rates low, and property values down, it is definitely a buyers market. Homeowners desperate to sell their property have been making drastic reductions in selling prices. This translates into multiple advantages for the buyer. The first advantage is that the buyer will have less money to finance, which will improve your chances of obtaining a loan. The other advantage is that once the property values rise again, you will have gained substantial equity in your property with no effort. This means that you have another avenue for emergent cash in the form of a home equity loan should a dire need arise in the future.
With this information, you can approach a lender and be prepared to negotiate the terms of your loan. Remember that knowledge is power, so do your research so that you understand the process and have so leverage in the negotiation process.
