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Getting
a home loan can often seem a big challenge, so chances
are you have more than a few questions. Don't worry...
we have the answers. The following are some of the more
common questions we've heard, as well as the answers
to help you along. Of course, if you have any additional
questions, you're always welcome to call us at 1-800-883-4444
or e-mail us at homeloan@progressiveloan.com
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Q:
Is 20% of the price of a new home required as a down
payment?
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A:
No, there is no set amount that you must put down. Mortgage
loans can now be tailored to fit each home buyer's needs
and financial resources. The standard was 20 percent,
but lenders today recognize that 20 percent of the sales
price is a tremendous amount of cash for most first-time
buyers. Today first-time buyers commonly put down 3,
5 or 10 percent of the sales price, and you might be
surprised to learn that some first-time homebuyer programs
allow 100 percent financing – that's right, zerro
down payment*.
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Q:
Can young people get home loans?
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A:
Age makes little difference. Most first-time homebuyers
are in their twenties or thirties. In fact, 50% or more
of new home mortgages are made to people under 35. Many
prospective home owners worry that they must fit a particular
profile in order to qualify for a loan. It's not true.
The fact is, among all the things that mortgage lenders
look at, the most important - whatever your background
- are these: what is your income compared to the debt
you're currently carrying, what is your credit history,
and how much do you have in savings...
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Q:
Will it be more expensive to pay mortgage payments than
to rent?
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A:
If you're paying rent, you might be surprised to see
how little the difference is between making home payments.
In many cases, mortgage payments can be close to, or
even less than your current rent payment. Besides this,
owning a home is a solid, long term investment which
offers substantial tax benefits... something renting
just can't compete with. Check out the calculator found
at our Buying vs Renting
page to see the difference.
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Q:
What is the minimum income you can earn and still qualify
for a mortgage?
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A:
There is no set minimum income requirement for mortgage
qualification. However, you need to be certain that
your income level can support monthly mortgage payments.
Fortunately, this site will help take the guesswork
out of knowing whether or not you can qualify. Before
you even start looking for a house, try out the calculator
found at our Finding
What You Can Afford page, then talk to one of our
mortgage specialists. He or she can help you determine
how much of a loan you may qualify for.
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Q:
Will a late credit card payment disqualify me from getting
a mortgage?
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A:
Late payments (especially those under 30 days) should
not automatically disqualify you from getting a loan.
Almost every one has had trouble making a payment at
one time or another. You're only human, and mortgage
lenders know this. Many people find themselves in difficult
financial situations, often due to illness, divorce,
or temporary unemployment.
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If
you can demonstrate that the problem is in the past,
and you have been able to re-establish a good track
record for a sufficient amount of time, you should still
be in a good position to get a mortgage loan. There
may be a reasonable explanation, so speak to your lender
honestly and openly about the situation. It's important
to remember that lenders don't just look at your past
history, but also at your ability and willingness to
pay in the future.
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Sometimes,
you may not be ready to buy a home. Doing so may only
compound your problems. If you don't qualify for the
loan you want today, work with us to address the issues
that have kept you from getting your loan approved.
With a little help, you may be just a few months away
from getting that new home.
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*For
down payments of less than 20%, mortgage insurance (MI)
will be required and associated costs will apply.
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If
you have any further questions, please feel free to
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call
us at 1-800-883-4444, or e-mail us at
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