Marlboro Homes - 7 Ways to Qualify for a Home Mortgage

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Real Estate Agent with RE/MAX Central, Marlboro, Manalapan, Freehold, Old Bridge NJ

 Marlboro Homes - 7 Ways to Qualify for a Home Mortgage - Roy Giordano - Century 21

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A few years ago, home buyers were qualifying for mortgages who normally wouldn't qualify for a mortgage. It was easy to get a mortgage because homes were flying off the market before they were even listed for sale. Lenders saw dollar signs, so they found a way to help buyers get a mortgage with what many called creative financing. 

Things have certainly changed in today's housing market. Qualifying for a mortgage is harder than it was a few years ago, but it's not impossible. I advise many clients on how they can qualify for a mortgage in today's market. Here are some helpful tips:

1. Inspect all three of your credit reports. Pull your credit reports from Equifax, Experian and Transunion. Make sure that all of the information is accurate. If you find an account that doesn't belong to you, submit the necessary form to all three credit reporting agencies to dispute the account.

2. Improve your FICO score. Unfortunately, mortgage lenders heavily weight your lending eligibility based on a score that doesn't accurately measure your financial stability. The FICO score only measures your ability to repay a loan. Improve your score by paying down debt, paying all of your credit accounts on time, and keeping open accounts with a zero balance.

3. Save for a bigger down payment. Buying a house with a 10% or more down payment shows you are serious about becoming a homeowner. If you're looking for a Federal Housing Administration loan, you'll need at least a 3% down payment.

4. Increase your household income.
That's a tall order in today's job market, but mortgage lenders want you bringing in enough money to realistically pay for the loan. Two-income families qualify easier than one-income families. Pick up a second job, become a two-income family, or start a home-based business.

5. Choose a realistic budget.
The rule of thumb is a mortgage payment that is 25% of your monthly household income. Choose a price range that fits this criteria. If you make $4,000 a month, then choose a price range that gives you a mortgage payment of $1,250. The term "house poor" comes from people that spend the majority of their income on a mortgage payment.

6. Stick with one employer. Mortgage lenders like stability, especially in today's market. If you can manage to stay with the same employer for more than two years, that will weigh in your favor.

7. Negotiate a price lower than the appraised value.
If you negotiated a purchase price that is lower than the appraised value, you can consider it instant equity in the eyes of the mortgage lender. Follow the advice of your real estate agent on how to make the right offer.

Now is the time to buy, but lenders now have stricter guide lines for obtaining a home mortgage. Don't let this discourage you. Take this time as an opportunity to fine tune your personal finances. For more information on how to qualify for a mortgage, please email me royrealtor@yahoo.com. Also, please forward this information to any of your family or friends who might also be in the market for a mortgage. You can find additional information about Mortgages by visiting my website at www.roygiordano.com

Roy Giordano - 7 Ways to Qualify for a Home Mortgage

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Marly Liem 12/13/2009 01:21 PM
  2. Allen G. Wallace 01/11/2010 04:57 AM
Topic:
Home Buying
Location:
New Jersey Monmouth County Marlboro
Groups:
Active Rain Newbies
Realtors®
First Time Homebuyer
Advice for Buyers
Tags:
home values
mortgage
marlboro home buyers

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Rainer
87,527
Taylor Shults Philley
Austin Realty Firm - Austin, TX
Broker, Realtor , GRI

All very true! I especially like that you suggested choosing a realistic budget. Just because the bank will give it to you, doesn't mean you should take it all. Nice!

Nov 03, 2009 09:26 AM #1
Rainer
42,893
Marly Liem
Doral, FL

Hi, Nice blog post. Great information, especially for first time home buyers.

 

Dec 13, 2009 01:21 PM #2
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Rainmaker
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Roy Giordano - Top Real Estate Expert

Top Agent Marlboro NJ, Marlboro/Manalapan Homes
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