How to Secure a Great Home Loan in These Tough Financial Times

home loanMost people dream of owning their own homes, however not everyone has the funds and means to be able to do so, particularly in these tough financial times when home loans are more difficult to obtain, or housing prices, way out of our reach.  For the majority of us, securing a home loan is the only way to reach our dreams of owning a home.  However difficult this may seem in the current market, financial experts say that it is achievable to secure a great home loan in these current financial times.

Firstly, you have to assess your current financial situation; the amount of savings you have, your assets, income, expenses, and any other loans you may have.  Being aware of the financial aspect s of your life, will allow you determine the type of mortgage which will best suit your circumstances. Alternatively, a professional home loan consultant or mortgage broker can help you find the right home loan

There are many different loans to choose from:  variable rate loans, fixed rate loans, split or combined loans, and lo doc home loans.  Different rates apply for each and there are pros and cons to all. It may seem overwhelming at the time, but doing your research on each type of home loan will mean saving time, money and stress. You know what they say, knowledge is power, and if you walk into a meeting with a mortgage broker, armed with relevant questions and a detailed understanding of each home loan, you will benefit greatly.

Maintaining a good credit history can also be an effective way to secure a great deal on a home loan. Make sure that you don’t miss a credit card payment, never fail to pay a previous loan or have never been declared bankrupt. If you follow the above steps, you should be able secure a great home loan even when weathering the financial storm.

Which type of home loan have you used before?

photo by cindy47452
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Comments

  1. We have a fixed rate loan. Looking to buy another house next year! 🙂

  2. We have a variable rate because we are military and will likely be moving out/selling our house right as the rate is eligible to change. AND even if it goes up and entire percent the first year of variance, that will be the same rate they would have originally given us for a fixed rate loan. (Hope that all makes sense) Most people think we’re nuts for buying a house since we’re military but with the housing market in our area and the $0 down VA loan, it was the best choice for us. I honestly haven’t seen a house in our neighborhood for sale for more than a few weeks before a big SOLD sign was put in front of it.

  3. My wife and I just got approved for a 30-year conventional non-FHA loan. It was a little touch-and-go for a while because we are moving from our condo to a new house and keeping the condo as a rental. Apparently in order to not count the condo debt against our debt-to-income ration we would have to have 30% equity OR have two years of rental history! We got around this by opting to pay our Private Mortgage Insurance upfront which lowered the payment by over $100.

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