Tuesday, January 17, 2012

Problems When Purchasing A Home

If you are planning to purchase a home in the near future now is the best time. Mortgage rates are at an all-time low some as low as 3.25%.

So you go to your bank to have your mortgage financed and to your surprise you are turned down for a loan how can this be? You met the standard for mortgage financing a few years ago and you still have a high credit score but you are unable to qualify today.

Probably one reason would be your less than perfect credit score. You must remember a few years ago Freddie Mac and Fannie Mae were lending money to just about anyone and your credit score was much lower than today. In today's market your credit score is much higher if you had any events in your life that could have lowered your score even a little bit you cannot qualify for a loan.

Another major reason could be a low cash down payment on your home. Before banks would only require a small down payment and would finance as much as 90% of the loan. But now most banks require at least 20% down. To qualify for a mortgage you probably have to wait a little longer to secure a larger down payment. You may also check with your credit bureau as to the status of your current score and try to improve it. Another option would be rent to own check with your local real estate agent about this program.

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