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Top 5 Mortgage Questions And Answers Of 2011
Mortgage questions come up every day for consumers who are shopping for a home loan. Lender 411 answers the top five of 2011! 1. If my credit is less than perfect, can I still qualify for a mortgage? A mortgage can be obtained by people with all kinds of credit. Rates will increase slightly as a credit score gets lower, but a mortgage can still be obtained in many cases. Keep in mind though, a lower credit score may limit you to less mortgage loan programs than you would be able to access with excellent credit. However, compensating factors such as a large amount of money put away in checking or savings accounts, 401k accounts, and investments, combined with a steady job history and lower loan terms--such as a 15 year instead of a 30 year--may help a lower credit score and qualify you for a better rate. 2. Can I get a mortgage after having a bankruptcy? You could still qualify for a home loan even if you have a bankruptcy in your history. The best way to find out is to meet with a lender and discuss your options. Bring all paperwork regarding your past bankruptcy with you in order to learn whether there is a loan that will meet your needs. 3. How does my credit score affect my ability to buy a home? Credit scores are an important part of the loan process, but don't be discouraged if yours isn’t perfect. Judgments, bankruptcy, and late payments can all lower your credit score, but they don’t always prevent you from getting a mortgage. 4. Can I get a mortgage if I am self-employed? There are loan programs available for self-employed borrowers, though you may need to prove your income history. Having a good credit score can be a big plus if you’re self employed and shopping for a home loan. Be sure to use a mortgage calculator, which will help you figure our how much home you can afford. 5. What mortgage loan terms are available for me as a borrower? There are many loan terms for consumers to choose from. The most common loan terms are 5, 10, 15, 20, 25, and 30 years. Some lenders will still let you do the years in between these ones also, although it is not very common. Generally the lower the term you select, the lower the rate can be. The 30 year mortgage term is the most common loan term used for home mortgage financing. |
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