| In attempting to approve home buyers
for the type and amount of mortgage they want, lenders basically look at
two key factors: the borrower's ability and willingness to repay the
loan. Ability to repay the mortgage is verified by your current
employment and total income. Generally speaking, lenders prefer for you
to have been employed at the same place for at least two years, or
at least be in the same line of work for a few years. The borrower's willingness to repay is
determined by examining how the property will be used. For instance,
will you be living there or just renting it out? Willingness is also
closely related to how you have fulfilled previous financial
commitments, thus the emphasis on the credit report or rent and
utility bills. It is important to remember that there are no
rules carved in stone. Each applicant is handled on a case-by-case
basis. So even if you come up a little short in one area, perhaps one of
your stronger points will make up for the weak one. Everyone involved in
real estate is in the business of selling homes, in one way or another.
Therefore, if the loan makes sense, lenders and insurers will do
their best to see that you qualify.
By its very nature, mortgage insurance is an aid to affordability,
because it allows families to purchase homes with less cash on hand. The
industry plays a central role in helping low- and moderate-income
families become homeowners. More and more borrowers are taking advantage of
low down payment mortgages and becoming homeowners with as little as 5
percent down. For more information on how you can take advantage of the
benefits of a low down payment home loan with mortgage insurance,
contact your local lender or real estate agent. For general information
on purchasing a home, contact the county extension office of the U.S.
Department of Agriculture, listed in the government pages of your
telephone book. |
