Getting the Home Loan You Need

The downturn of the housing market has at least one silver lining for aspiring home buyers. A market that only a few years ago was tilted firmly in favor of home sellers has now undergone a reversal. In this market, home buyers are definitely in the driver’s seat, and that means that buyers with the credit and down payment they need can negotiate some excellent prices. Savvy home buyers can land some bargains that would have been undreamed of only a few short years ago.

Of course, one of the reasons the housing market is in such disarray is the fact that mortgages have suddenly become more difficult to obtain. At the height of the housing boom, it seemed that any buyer who could sign his name to a loan document was instantly eligible for a huge mortgage, and it was these overly generous lending standards that ultimately led to the collapse we are now living through.

Even though mortgages are now more difficult to come by it is important to keep in mind that home buyers across the country are still buying homes — and still getting the mortgages they need to purchase the homes of their dreams. Many would-be home buyers have been discouraged by the doom and gloom being reported, erroneously believing that it will be impossible to find a mortgage. The truth is that while lending standards are indeed more stringent, qualified home buyers can still expect to get the funding they need to purchase a great home.

The key to getting that mortgage is to be prepared. The days of no money down loans, no income verification loans and other excesses are largely gone. Home buyers these days will need to provide solid information regarding how much they earn, the assets they have and other financial information. Having this information readily available will make the process to secure financing quicker and much less stressful.

Additionally, a good down payment can be very valuable both in terms of landing a mortgage and in terms of providing financial stability. One of the most common scenarios today is the homeowner who owes more than the home is worth. Putting at least 20 percent down can help home buyers avoid this dangerous predicament while enhancing the chances for an affordable mortgage loan at a great rate.

Finally, make sure to develop a good relationship with your lender. Buying a home will most likely be the biggest and most complicated purchase you will ever make, so finding a lender that you trust and that will consider the best financing programs for your circumstances is essential to securing the mortgage for the house of your dreams.