A house is not just a structure. It is a place that can be filled with irreplaceable and priceless memories. It is where a couple builds a family and a haven. But apart from the purpose of a house, another important consideration is price. Houses don’t come cheap. Even a small structure with very basic facilities can sell for tens of thousands of dollars, especially if it is in a prime location; and not a lot of people can afford to pay for the full price of a house in just one financial transaction. This is where mortgages become crucial. With a mortgage, a couple hoping to start their life together or even a person who dreams to have his own place can make his wishes of having a home come true.
What’s a Mortgage?
Generally, someone who wants to buy a home will get a residential mortgage application. Here, the person borrows money to purchase a residence, and the collateral used is the house bought. An individual can get mortgage from a bank or a private financial institution, and in case that person fails to pay monthly mortgage fees, the entity that provided him the money has the right to seize the property. A bank, for instance, has the right to evict residents and sell the property in order to cover its losses.
Knowing Your Lender
In the past, it can be a bit easier to get a mortgage approved. Just make sure that you have enough money in the bank, a good and well-paying job, as well as a good credit score, and you’ll most likely get approval in a cinch. These days, however, it’s harder to get approved for a mortgage. Financial institutions are being more cautious, and even though you might possess all the requirements needed, your mortgage might not be approved. But there are also a few things that you can do in order to make things lean in your favor. Here are some things to consider.
It’s very helpful to get to know your lender really well. This way, you’ll know better what sort of requirements or characteristics a lender is looking for. By being aware of such elements, you’ll be able to tailor your application in a way that will most likely satisfy that specific lender. If you get rejected, don’t lose hope. You can go about the rejection in two ways. First, you could request for an exception. This is like asking someone else from the same financial company for a second opinion. Here, you’ll need to compose a formal letter as regards why you are requesting for the exception and point out facts that could’ve negatively influenced your application. You should stick to the financial facts. The second way is to look for another lender. One lender may reject you, but know that many others could also approve your application. But learn from your mistakes. If the first lender you approached rejected you, ask him a couple of questions about why or what factors convinced him to reject the application so that you can make the necessary changes before approaching another lender.
Claire Mann is a freelance writer. She contributes articles to www.laurieannre.com and other real estate websites. This website contains helpful info regarding Ventura County real estate.