Tighter Lending Leads To More No’s

Are you looking to get a home mortgage? Are you finding that you’ve got a limited amount of options at your fingertips? If so, then understand that you’re not the only one. Most folks have a difficult time locating a home mortgage that’ll help them lower their mortgage payments or get a first-time homebuyer’s mortgage industry working against them (or so it seems); what can you do?

The mortgage companies are tightening their belts on who they’ll lend money to.  This means the criteria that used to help first-time home buyers get their home is now keeping them from getting one. If you think about it, it’s a bit unfair.

Most of these first-time home buyers were saving money during the recent economic downturn. The money they saved and believed they could use as a deposit is now not enough for what mortgage companies want before they approve any home mortgage. This means buyers must wait several additional years to raise the money they need, or they have to borrow money.

Borrowing Money To Purchase Your Home

Of course, the issue with borrowing means they need to have the capital to get a loan. If they have no home, then getting the money from a loan company is going to get awkward.
Sure, you could borrow money from your family, but most families don’t have that kind of money to put up. At least, not the kind of money mortgage companies are looking for, especially in these times.

Say, for argument’s sake, that you were able to gather the money to get a home mortgage; what do you do now?

The Different Kinds Of Mortgage You Can Apply For

There are several kinds of mortgages that you can attain, and what you pay every month will depend significantly on what type of mortgage you get.

If you’re looking for a set monthly payment every month, then you’re looking for a loan that’s got a fixed interest rate. If you have interest rates that are going to fluctuate and think they’ll head downward, then a floating rate will track that interest rate.

These mortgage types do have some advantages but also some disadvantages.

If you have your home mortgage set to track the base rate, you won’t know how much money you’ll need to pay every month. One month could be a good monthly payment, and the next month could be a lot more than you can pay for your mortgage.

With a fixed rate, you may think you’re locking in at a good interest rate, only to find that it falls the next month. You could actually be stuck at that high interest rate for several years. After enjoying that comfort level, you find that your mortgage payments will go upwards because the interest rates have risen.

When you need a first-time home buyer’s mortgage, these may even be restricted to you. Some companies will offer them as incentives to get a home, so be aware that you’re not out of options.

Are you trying to find a home refinance mortgage? You may learn that the mortgage company you’ve used previously may not be willing to work with you due to their requirements tightening up. While it does work to your advantage to keep your mortgage company the same, it could be an issue. However, it’s always best to call them first and get some information.

If you’re planning on trying another company, for whatever reason, you might find they want lots of information from you… even if they have deals that’ll work in your favor.

When you do a little research, have money to bring to the table, can provide proof of earnings and accounts…whatever you need to show the mortgage company that you can make the payments, you can get a new home mortgage, first-time home buyers mortgage or obtain a home refinance mortgage to get you better interest rates or money to pay for other necessities or pay off credit cards.