Tips For Buying A Home – The New Rules

Buying a home today is different than it was a few years back, before the mortgage crisis. Lenders today are much more stringent in their rules for borrowers. To buy a home today, you have to understand the rules.

Facts about buying a home

  • Contrary to what you may think, now is a good time to buy a home. Interest rates are at a historical low, as are housing prices. Record foreclosures mean a large supply of houses on the market to choose from.
  • Worried you may end up in foreclosure? If you have a setback such as a job loss or illness, it could certainly happen. Foreclosure problems can be lessened with responsible credit and budgeting, though. Contacting your lender at the outset of trouble is essential.
  • Even if you don’t have a bank account or credit cards, you still may be able to get a mortgage. Keeping records of rent, utilities and car payments shows the bank you are responsible. Opening a bank account is always a good idea, and also helps with your credit.
  • Showing your lender good credit and a stable income is important as always, even if you have changed jobs in the last few years.
  • If you fall behind in your mortgage payments, contact your lender as soon as possible. You don’t have to lose your home. Lenders do not want to foreclose on home because they lose money by doing so. They are open to helping you figure out your money problems.

Even though the rules have changed since the mortgage crisis, it is still possible to get a mortgage. It is also a great time to buy. Keep these tips in mind and you could soon be in your own home.