2 Vital Tips on What to Ask Your Mortgage Lender before Applying for the Home Loan

Applying for the Home Loan

Are you looking to make a new investment? If you have taken up a job & are beginning to settle down now, one of the first steps in this regard is to make an investment. You must learn to keep your finances secure. And one of the most lucrative forms of investment that exists nowadays is the real estate. With the increasing rates of the real estate, it is evident that you will be able to benefit greatly from this kind of an investment. Just simply purchase a house and then you can put it on rent as a regular source of income or just sell it out later when the market is doing well. This way, you will be able to double the money that you are investing in now. But the question of how will you invest this amount?  Even if you have a job and are beginning to settle down, then too, it might become difficult to gather the amount you require to purchase the house independently. So, will you never be able to purchase a house and plan your investment? Of course, not. You will be able to. All you have to do is look for a good home mortgage program.

There are several kinds of home loan programs which can be availed if you meet certain eligibility criteria. Some people have a high debt to income ratio which decreases their credit score and affects the chances of a loan approval. But nowadays, you can get good home loans for high debt ratios too. What you will need is the right mortgage lender. And in order to find the perfect lender, you have to ask some vital questions. If you are going to be asking questions to a lender for the first time, you might make a few mistakes. So, here are a few tips to keep in mind while talking to your home mortgage lender. Take a look.

 

Remember to Ask about the Low Credit Scores

As already mentioned, everybody cannot maintain a high credit score which creates issues with their loan approvals. If you are one among these people who have a low credit score due to high debt to income ratio, then you must definitely enquire about the credit score requirements to your mortgage lender. If the lender is too strict about the credit history requirements, then you might not qualify with such a low score. All you have to do is opt for the first time home buyer programs where the lender allows you to apply even with a low credit score or one that is even below the minimum credit score requirement with special allowances. That is why you should always ask the lender about his or her preferences with the credit score.

 

Don’t Forget the Down Payment

Since you are applying for a home loan, you must be aware of the down payment that one is required to pay despite opting for a home loan option. It is extremely important to look for a home mortgage lender who is flexible about the down payment amount and options. While you need to compare the number of down payments among different loan programs, you have to also keep an eye on the down payment sources which are acceptable to the lender. Some lenders are strict about the source of this amount. Ask the lender if he or she will accept savings, down payment assistance grants, or gifts from family and friends. If you forget to clear this point, you might gather the amount in a manner which might not be acceptable to your lender and your loan might not be approved.

So, now that you know about these tips, find the best mortgage lender in Houston and remember these while asking all sorts of questions to him or her.

Author Bio: Joan Gallardo, a Senior Loan Officer, here writes on a few vital tips on what to ask the best mortgage lender in Houston before applying for the home loans. Read his blogs to know more about how to get home loans for high debt ratios.

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