Monday, June 27, 2011
Just about everyone hopes to someday own their own home, but the ability to get a home loan has recently become that much harder. However, it is a far cry from impossible for those who have steady jobs and good credit. As most Americans know about five years ago the banks were giving out loans to whoever applied, regardless of whether or not the person receiving the loan was going to be able to pay it back. Therefore, our country is now experiencing a dip in the housing market. Many homes are selling for a fraction of what they are worth while others sit unclaimed due to foreclosure. It is not guaranteed that the housing market will completely turn around or be as good as it once was, but there are signs of improvement in some states. However, states such as California , Florida and Nevada continue to suffer.
The good new is if you want to buy a house, can get a loan and can afford to pay for a house you are more than likely going to get a great deal. Here are a few things to consider when getting a home loan:
1. Know your credit score- If you know your own credit score before you apply for a loan you will not have to worry over whether or not you will qualify.
2. Do not bite off more than you can chew- Despite the banks cracking down on who is eligible for a loan, you will be surprised to learn that if you have good credit and are employed the bank will give you a good amount of money towards your home purchase. However, the bank does not take into consideration the other things you buy and pay for with your income. So, be sure to plan your own budget and only borrow what you can afford.
3. Do not lie- If you think lying on your home loan application will guarantee you get the loan, you are sadly mistaken. The truth will always come out in the end. By lying you are only showing you are not trustworthy, which decreases your chances.
These are just a few things to consider when applying for a home loan. It is a good idea to find a bank you can trust and has a good standing name to work with. If the bank you find has knowledgeable employees that you can trust you are bound to get the right loan for your situation.