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5 Key Factors When Applying For a Loan

By
Real Estate Agent with Future Home Realty

Once you have finally decided to buy that dream waterfront home in Tampa Bay or any other area, there is a good chance that you are going to need a loan. Applying for a loan and getting it approved can be really stressful and confusing. Carful study can help you learn what to expect from a lender. It is actually known for a fact that most people spend more time in pre-purchase research for a car than they do for a home.

Of course the benefits of doing research on home mortgages are indeed beneficial and should not be overlooked. Here are 5 key factors that can help you improve your chances of landing an over-all good mortgage deal.

1. Comparison research

Approaching lenders with the details of what kind of loan and team you want, with the down payment statistic in mind. Getting the feel and knowing what different mortgage lenders offer is great way to start. After all, getting a loan for a home is indeed like getting financing for a car. There is always some room for negotiation. Thorough research of different competing lenders can serve as leverage in your application and can in fact give you enough sway for the lender to give in to what you are offering.

2. Maintain a good credit score

In order for you to be really credit worthy in any lenders eyes, maintaining a good credit score is defiantly a key factor.  Having bad records like late credit card payment or any other loan obligations can drastically decrease the chances of your loan to be approved no matter how much you try to convince them. Loans that are backed by the FHA actually accept low credit scores but will set higher interest rates. This shows just how important credit scores are especially if you are looking for new homes in Tampa FL.

3. Know your loan options

Knowing just exactly what your loan options are can really increase the chances of qualifying for a loan. Paying a down payment of at least 20% of the sale prise can spare you from have to pay extra for private mortgage insurances. If you cannot afford to pay the down payment, FHA-backed loans can be another way to qualify for financing since these types of loans only have a 3.5% down payment of the actual purchase price.

4. Keep a look out for fees

Setting aside money for the closing cost which may be a couple of hundreds or even thousands of dollars is something you should always bear in mind aside from making the down payment. Some lenders charge all manner of fees that are at times negotiable. Reviewing carefully these fees is a must. Your bank could charge items such as credit reports or documentation and keeping a look out for such fees can save you the frustration.

5. Be patient

If you find yourself in a situation where your credit scores are not solid enough for you to qualify for an affordable loan rate, being patient and not rushing into buying is a very important key factor.

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Rob Lyszczarz
RE/MAX Properties Unlimited - Westfield, NJ

Lance, Those are excellent tips.  With rates so low, are you seeing the great majority of borrowers taking 30 year fixed?  or is there still some benefit to going with ARMS in certain situations?

Apr 23, 2013 08:04 PM
Chad and Sandy Neumann
Chad and Sandy Real Estate Group - Jacksonville, FL
Jacksonville Realtor (904-414-6200)

Great tips Lance! You made it simple and clear, yet highlighted some of the most important points. Patience is a great additon to the usual lender suggestions!! ;-) I'd rather postpone an opportunity for a sale than to see a buyer rush into something they can't really afford.

Apr 30, 2013 03:26 AM