Even once you are well into the home buying game, the word mortgage can be a frightening one. You wonder what it really holds for you and your home buying experience. But it is not nearly as frightening as it sounds. A mortgage is actually a great opportunity for you to get into the house of your dreams. And if you think that a mortgage is impossible for you because of financial barriers, think again! You have options.
1) No More 20% Down On A Mortgage
There is no need to fear that large amount that 20% down would be. There are mortgage programs that have as little as 3-4% down with a credit score of 580! It is easy to back off from the idea entirely when you see 20% but don’t stop exploring your options!
2) You Don’t Need A Perfect Record
While we’re on the subject of credit, you’d be happy to know that mark on you credit report doesn’t necessarily kill your chances of getting a home loan. A foreclosure or bankruptcy can stay on your credit report for up to seven to 10 years, and it’ll take time to rebuild your credit score after a major ding. However, you don’t have to wait until a negative item falls off your credit report to qualify for a mortgage. It is possible to qualify for a mortgage three years after a foreclosure, and two to four years after a bankruptcy. Even if you’re in the process of rebuilding your credit score, the lender will qualify you based on your credit activity over the past 12 months.
3) You Can Get Help With Closing Costs
Mortgage lenders offer a variety of programs to help buyers qualify for a home loan. Some borrowers worry about the upfront costs of getting a mortgage, and many assume they don’t have enough in reserves to purchase a property. But while getting a mortgage involves down payments and closing costs, assistance is available to help you realize your goal of ownership.
Keep your options open by working with a program to find the best choice for your specific situation. Where are you getting all of your mortgage information resources? There are wonderful sites to help you navigate the mortgage market for you and help you get into your new home!