You can’t predict how anything ends up these days. What you can be sure of is the increasing number of homes sales. Mortgage rates go up and down depending on the economic situation and trading atmosphere. They were down for most of the year, and would more likely rise soon.
You can get a mortgage whatever your circumstance, whether you want to refinance a loan or buy a home. You only need to know the requirements to be eligible.
1. If your credit is imperfect, get a loan through FHA.
An FHA loan program feels more desirable because they’re commonly available to those who want to borrow, but have imperfect credit. According to Primary Residential Mortgage, Inc., last year an FHA home buyer had an average credit score of 686, while conventional buyers had an average credit score of 753. To have an FHA-insured mortgage, they will only require a credit score of at least 580 besides the 3.5 percent down payment.
On the other hand, those who have a credit score between 500 and 579 have to provide a down payment of 10 percent. Keep in mind that with this option, you have to look for a lender who would give a loan approval.
2. Keep some savings for future use.
Mortgage lenders don’t want you to use up your savings to pay for the closing costs and down payment. They would recommend you to keep your savings or keep some assets that you can easily sell. Doing this would be especially helpful if you happened to stumble upon unexpected expenses and not miss out on your house payments. To be eligible for a mortgage, your lender will estimate the minimum savings that you’ll need.
You don’t need to get stressed when you think about your mortgage. Follow the tips above, and you are on your way to get a mortgage.