The financial crisis percussions which lasted in the world for years even after the biggest impact had high impacts on the house lending systems and curbed the rate of mortgages provision especially in the USA.
To make sure of customers’ eligibility of receiving a mortgage and to close all chances of default or foreclosure, lenders imposed a set of strict requirements that needed to be evident in mortgage applicants.
These requirements are made to secure the deal and to guarantee the lenders’ rights irrespective of citizens’ rights of home ownership.
There is one main trodden way American citizens should trek in order to secure a mortgage deal. It starts with research.
How to get a mortgage?
Thorough research process needed before choosing a lending agency. It’s better to check for the best institution having the best reputation, numerous positive feedbacks, and offering the most suitable mortgage terms and rates convenient to applicants’ situations and expectations.
Check the internet for the best financial institution as most firms nowadays display their financial services online. Also try to ask your surrounding circle of friends and acquaintances for the most popular lending agency.
2- Check Credit Score
The credit score system was accredited in USA long time ago. It’s a number obtained through a set of calculation that reflects citizens’ creditworthiness to obtain loans.
Lenders require minimum credit score for their services. The scoring range at most of the scoring bureaus varies from 300 to 850. To get approved for most big loans, I mean loans offering essential and costly commodities like houses and cars, you must have minimum credit score of 600.
Try to check your scoring before application to find out your eligibility. If you have low numbers, try to improve it first.
There are many means to boost credit numbers including having good amount of regular income, maintaining strong payment history, and delivering payments on time.
You can apply for the deal online. During the application process you will be entitled to fill in most of your personal information like email address, social security card, address, bank account, etc.
Try also to attach some of your official papers to prove the typed-in information like a proof on income and HR letter.
There are key factor you could use in the negotiation process to obtain better deal conditions. If you have robust payment history, you could use it in getting more flexible payment schedule. Same thing for high credit score, and considerable monthly income.
Never miss the chance of negotiating with your sales representative or sales manager for acquiring better terms.
5- Down payments
Deposit as much down payment as you can. The bigger down payment you deliver, the better loan rates you will get. So try to afford at least 20% of the loan amount as underpayment.
6- Nice handling
The last step is actually a tip or recommendation. It’s better not to handle two “big loans” at a time. So if you are paying off a mortgage, don’t open an auto loan account.