| In attempting to approve home buyers for the type and amount
of mortgage they want, mortgage companies basically look at two key factors: the
borrower's ability and willingness to repay the loan. Ability to repay the mortgage
is verified by your current employment and total income. Generally speaking, mortgage
companies prefer for you to have been employed at the same place for at least
two years, or at least be in the same line of work for a few years.
The borrower's willingness to repay is determined by examining how the property
will be used. For instance, will you be living there or just renting it out? Willingness
is also closely related to how you have fulfilled previous financial commitments,
thus the emphasis on the credit report or rent and utility bills.
It is important to remember that there are no rules carved in stone. Each applicant
is handled on a case-by-case basis. So even if you come up a little short in one
area, perhaps one of your stronger points will make up for the weak one. Everyone
involved in real estate is in the business of selling homes, in one way or another.
Therefore, if the loan makes sense, mortgage companies and insurers will do their
best to see that you qualify.
By its very nature, mortgage insurance is an aid to affordability, because
it allows families to purchase homes with less cash on hand. The industry plays
a central role in helping low- and moderate-income families become homeowners.
More and more borrowers are taking advantage of low down payment mortgages
and becoming homeowners with as little as 5 percent down. For more information
on how you can take advantage of the benefits of a low down payment home loan
with mortgage insurance, contact us for more detailed information that will help
you buy your home.
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