If you had purchased your home a few years back then you are lucky enough. If you see the current economic scenario and the situation of credit crisis then you will understand the reason behind it. Till the end 2007, there was a free flow of credit and availing credit was not at all a daunting task.
But, in the present times the scenario has changed. The ongoing recession is acting as the primary villain behind it. The active effects of the recession have fallen on the banks and other lending originations and for that reason the people with requirement of credit are suffering. In the present times, if someone is possess a wish to own a home in Dallas and Coppell, that willreally cost him a lot. But, don’t think getting a loan is impossible, actually it is challenging.
So, here we are discussing some points which you should keep in mind before going for a home loan.
Go for a low debt-to-income ratio: majority of the banks look for a low debt-to-income ration and the exact number varies from lender to lender. So, you should keep in mind that a big portion of your income should not spend in paying off loans. Usually, 30% debt-to-income ration is expected by most of the lenders.
Stability in work is needed: lenders usually see how much steady job history the appliers have. More will be the stability, more will be the chances to get the loan earlier.
You need to make 20% down payment: most of the lenders ask for 20% down payment of the total amount, so make sure whether you will be able to pay it or not.
You need to have a good credit score: after all should have an excellent credit score. Better credit score builds reliability on the applier and lenders easily lend those people who possess a well record in credit scoring.
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