Tried and failed, that is the story of thousands of Americans each year when trying to get a loan for their first home. Many people ask us “what should I do?”, “how can I solve this puzzle?” and our answer is: Always to keep trying.
Real estate is a complex industry, with countless ways to achieve the final goal of homeownership, 2018 was a peculiar year with all its ups and downs, and now that we are moving into 2019, you really need to know several things just to be prepared when that great chance arrives, let’s start.
Supply and Demand of Loans
Most lenders face serious competition, and with the hyperconnected market that we have in the present, they need to keep having clients who take loans. With that clear explanation, we can assure that lenders are becoming more flexible in regards to their guidelines and terms of service, and with mortgage lending slowing down, most homebuyers have found a final solution with the help of fixed-rate loans, making 2019 the most interesting year in quite some time.
The Long Fight
Unfortunate events can happen to anyone, and some of them can inflict a devastating impact not only in your life but in your credit score too; illnesses, accidents, massive layoffs, eventualities, bankruptcy and so on, these circumstances are extremely difficult to manage, nevertheless impossible to overcome.
Actually proving that you are able to regain a sustainable income, because of a new job, or by using good credit habits to reduce the risk of default on your report, you can compensate and revamp those lending possibilities.
There are some outstanding statistics that show how increasingly positive is the market right now for homebuyers, this data assures the big truth that you don’t need lots of cash or a perfect credit score to get a mortgage, pay attention.
- Applicants with a debt-to-income ratio that is near 50 percent, get ⅕ of all conforming mortgages.
- 72 percent of the total mortgage applications were closed this year.
- The average score for closed loans is 727, and for FHA loans is 660.
- One in ten non-government mortgages has a loan-to-value surpassing 90 percent.
Loans that are backed by the government such as the FHA, VA and those coming from the United States Department of Agriculture offer more dynamic, versatile and flexible options for those who do not have the privilege of a top credit score, the latter being so necessary to obtain the lowest mortgage rates in the market.