cat­e­gory — mon­i­tor credit

How To Qual­ify For A Mort­gage At Low Rates If you are Work­ing out of your home

As you know it is pretty dif­fi­cult to qual­ify even for a cell phone ser­vice plan these days never mind a mort­gage. What makes it chal­leng­ing for peo­ple who are self employed it is even harder. This blog will go into how you can work towards get­ting approved for a mort­gage even if you don’t get a pay­check from a com­pany. Are you hav­ing dif­fi­culty stick­ing to your bud­get? Bal­anc­ing your check book? I hope not, we know in these eco­nomic times it can be dif­fi­cult to even think­ing about car­ry­ing a mortgage.

Kelly blue book took a sur­vey recently, that from oct 2007 to april 2008, peo­ple are mak­ing more effort by 22% more in car pool­ing instead of dri­ving their car to work. As well these same peo­ple that were sur­veyed said they are putting off buy­ing a house for the next lit­tle while.

Because the bank is being more con­ser­v­a­tive in approv­ing mort­gages you will need the following:

• Valid doc­u­ments such as corp income tax return or per­sonal income tax return to show proof of every penny you say you earn
• A down pay­ment of 20% or more, the more the better
• A good credit fico score, if you credit his­tory report rat­ing is less than 660, click this repair my credit report link
• a prop­erty that has good value as deter­mined by the home appraiser who inspected it
• A sales tran­ac­tion that is real­is­tic, some­thing that is believable.

For instance if you say that you earn $100 000.00, have no money in the bank and have a high revolv­ing debt or line of credit and you want to qual­ify for a $500 000.00 mort­gage with 5 per­cent down pay­ment, it is unlikely you will be approved by the lender.

What is the best type of mort­gage to go for if your income fluctuates?

have you ever heard of the Option ARMs. An option ARMs lets you pick how much inter­est and prin­ci­pal you pay towards your mort­gage. This is a type of mort­gage that many peo­ple are afriad of because lenders had approved many peo­ple on dis­abilty income, on wel­fare, with no real job to pay the mort­gage pay­ments each month and so many fore­clo­sures hap­pen. Many lenders had qual­i­fied so many peo­ple with out doc­u­men­ta­tion or proof that they could actu­ally pay and afford the mort­gage. These option ARMs have a low intro­duc­tory rate.

How are Option Arms for peo­ple that are self employed?

They are still the best option because if you have all the 5 cri­te­ria above, you can get an inter­est rate such as 7 %.

Cul­ti­vat­ing a con­scious rela­tion­ship with money and your banker is the way to go. Don’t let bad pat­terns or over­spend­ing pre­vent you from reach­ing the goal of buy­ing your first home.