Having A Home Loan

Just some years back, it was pretty easy to get a home loan just by having a decent credit score. Lenders would not worry about anything else other than making fast cash by handing out quick loans even to the under qualified.

Applying for it was pretty simple and getting approved is quite easy. Lenders did not mind late payments or debt to income ratio back then. If you have a viable credit score above 620, then you’re good to go.

Today, it’s still possible to get approved if you have such score, however, you have to come with a hefty down payment. Or, you could pay high closing costs and high interest rates over the course of the loan.

The question is, why do we get shocked about the state of our economy? We all wonder whatever happened to the housing industry. Who do we blame for this downfall? Will anyone fix it? If yes, who?

It boils down to the fact that greedy lenders in the past are to blame, they handed out loans to irresponsible people who were not even fit to be lent in the first place.

As a result, those home owners who are not qualified will be unable to pay their loans. And the massive foreclosures are on our hands. Suffice it to say, those lenders only took advantage of people before. Today, lenders don’t trust applicants just depending on their score.  They scrutinize everyone as well as ever report.

We are punished for their mistakes. If you’re looking to have a mortgage with reasonable terms, you may want your report examined and cleaned up. They could contain items or errors that could be deleted with some work.

Good deposit also breeds trust in your commitment to owning a home. Also, creditors will be checking into your debt to income ratio.  This can be improved by paying down debts, earning more, or ideally both.

You will be significantly benefiting if you do some investigating in your own history.  Check what lenders are looking for and what you must have in the first place to be trustworthy according to them.  With time and patience, you will have a home without any regret of paying too much in fees and interest.

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