Here is a helpful article by Phoebe Chongchua offering tips to qualify for a mortgage. She addresses the importance of being financially conscientious when preparing to finance your home.
Mortgage Rates Low, Tips To Qualify by Phoebe Chongchua
Mortgage rates continue to remain low despite a recent slight increase. The 30-year fixed rate increased just a bit at the end of November but that comes on the heels of setting a record low of 3.31 percent. The 30-year fixed rate is still lower than it was this time last year, when it was at 4 percent.
While many people are taking advantage of the low rates and either refinancing or shopping for a home, some are finding it difficult to qualify. The tightening of credit and the increased lending restrictions have made the effort to get a new mortgage a headache for some.
The good news is there are tips to help you qualify for a mortgage. Here are a few that you should consider before you head to the bank or a mortgage company.
Get your finances in order. Know your financial situation. That means not only your income, spending, debt, but also your credit status. In a downturned economy many crooks are looking for ways to make a buck and they're coming up with more scams that can negatively affect your credit. Debit and credit card skimming is one way that thieves are stealing credit card numbers and then charging up expenses on the stolen account. Even if you never lost your credit/debit card, that doesn't mean you're safe. It can happen when you use the card at a store, restaurant, or other retail outlet.
If your bank is on the ball, it will alert you, maybe even before you realize your card has been compromised. This is why credit reports can offer valuable information before you apply for a mortgage. Getting your credit report and reviewing it carefully provides you with the opportunity to see if there are errors or problems that need correcting.
Reduce your debt. This is a tough one. A lot of people are refinancing because they're hoping to get funds back to help them do this very thing, lower their expenses and reduce what they owe. However, if you carry a high debt, you'll have trouble refinancing or getting a mortgage to buy a home.
The optimal thing to do is to start conserving and looking for ways to save. It's not about how much you make, but how much you save that can help you find ways to reduce your debt.
Look for expenses to cut. Many people are opting to no longer use phone landlines or even cable. If you're working a lot and you don't watch much TV, cut the line. News and other features you watch on TV can also be accessed online on your computer. Keep only what's necessary. Sustainable living and conservation are becoming very popular. Check with your local utility company to see how you can reduce power usage in your home. Start by unplugging electrical appliances that aren't in use. These appliances, when plugged into an electrical outlet and even though not in use, use electricity which translates to you having to pay more on your utility bill for energy you're not even using.
Get educated. The loan terms and restrictions change all the time. Meet with qualified expert professionals to help you through the process. Just because you don't qualify today doesn't mean it will always be that way. Find out what you need and can do and start moving toward your goal. Sometimes the best thing you can do is gain knowledge. The information that you get from real estate professionals will allow you to develop a plan to achieve success.
Don't give up. The difficult economy has been discouraging but situations change and more opportunity will come. Be patient. Seek advice. Stay informed. Follow your plan, even if at first it seems like a long-shot before you'll get your goal.
This article, and other helpful columns, can be found at http://realtytimes.com/FinancialWire/142/1.NicoleVaivadas
Please contact Nicole Vaivadas, MLO# 135840, at 425-818-5880 to discuss any questions you may have regarding the financing of a new home.
Author:Gini Anderson Phone: 253-988-0180 Dated: January 22nd 2013 Views: 1,417 About Gini: Making Clients For Life!
Gini strives to go the extra mile to help you achieve your goals. Because ...
About Anderson Homes & Land / Keller Williams Puget Sound
For Our Puget Sound Home BUYERS! – Our goal is making sure your Puget Sound real estate buying experience is extraordinarily successful! We will provide you with exceptional service through every step of your home buying process. Let's get started!
From this site you can Search your favorite Puget Sound listings from the convenience of your home. And You will be the first to get new listings that match your criteria! Our "For Buyers" Section is your source for the latest tips, real estate checklists and free reports. Take advantage of our 26+ Years of NW real estate experience as we guide you through your real estate transaction. We can provide you with specific Community information and refer you to some of the top professionals in the lending industry. We get the job done for you and are responsive to all your Puget Sound real estate needs. We will provide you with prompt service, communication, personal guidance and professional competence from contract to closing!
Financial advice – Our lenders are seasoned professionals and offer you guidance tailor made for your individual mortgage solutions.
SELLERS! - As Puget Sound real estate specialists, we know what it takes to sell your home. We bring expert knowledge, valuable experience blended with the latest technology, comprehensive pricing strategies, a well-defined marketing plan, preparation & Staging consultation, vast exposure to your listing, networking with industry professionals, enthusiasm and the satisfaction of a job well done. Our "For Sellers" Section is Your source for the latest tips, checklists and free reports Personal Consultation - 26+ Years experience and knowledge you can rely on. 30 Years of design and Staging experience for sellers. Relocating - Everything you need to know about the neighborhood and a community’s amenities. If you are planning to put your Puget Sound home on the market, please browse our blogs and our website for valuable information on preparing your home for sale, pricing your home right, marketing it effectively and the home inspection processes.
We are passionate about real estate, love the Puget Sound area and stay on top of the latest trends so that we can better serve our clients.
Buying & Selling by Design, your Success is our Success!