Since the subprime mortgage crisis, lenders have changed how they look at prospective borrowers. The rules today may be different, but home buyers also may not understand the reality of today’s market. Here are some tips about buying a home now.
Home buying facts
It is a good time to consider home ownership. The combination of historically low fixed-rate mortgages and record low housing prices makes buying a home now a great idea. Additionally, the record foreclosures have increased the supply of houses on the market.
What if I end up in foreclosure? The number of foreclosures is certainly a concern. If you lose your job or have an unexpected setback such as an illness you could end up in trouble. With responsible credit and budgeting practices, however, the likelihood of experiencing a foreclosure can be lessened. Also, contacting your lender immediately at the first sign of problems is a helpful strategy.
If you don’t have a bank account or credit cards, you still may be approved for a mortgage. Keep records of rent, utilities and car payments to show the lender you are responsible. Having a bank account is always a good idea, however, and helps you establish credit.
Even if you have changed jobs several times in the last few years, you could still get a loan. The most important thing is to show the lender your good credit and stable income.
If you are late on your mortgage payment, it doesn’t necessarily mean you’ll lose your home. A change in your financial situation could mean that you fall behind, so contacting you lender as soon as you begin to have problems is the best strategy. Lenders do not want to foreclose on homes, since they usually lose money by doing so, so they are open to helping you make your payments.
Even though things have changed since the mortgage collapse, it is still possible to get a mortgage, and it is also an advantageous time to buy for many people. Keep these home buying facts in mind and you could be in a home of your own!