By Gregg Kell
Having a clear picture of what you can afford when shopping for a low income mortgage is essential. Finding a home that fits into your budget comfortably will help you avoid stressing every month when it’s time to pay your mortgage. However, before you start the house-hunting process, make sure you do your homework!
It may seem like the only mortgages available are for those individuals with excellent credit and a high income. These qualities may make getting a mortgage loan easier and quicker. However, being in the lower income bracket does not exclude you from the ability of owning your own home.
Before you can even consider applying for a mortgage, there are several things you have to do. Your first step is getting real about your finances. You need to figure out what you can afford in a mortgage payment that will not strain your living expenses.
Sometimes it may be a little difficult coming to terms with your finances. You may need help figuring out what you earn, what you have in monthly expenses and what you have left over to invest in a mortgage. If so, find a credit counselor in your area that can help you figure out your expenses. This will help give you an understanding of the price range to look out for when finding a new home.
Once you know how much you have to spend, it’s time to check out your credit rating. Although you don’t have to have immaculate credit to get approved for a mortgage, the better your credit is, the better terms and rates you’ll receive on your home loan. In the ideal situation, you should begin investigating your credit standing at least several months before you plan on applying for a mortgage. This will give you enough time to fix any errors, and pay any outstanding balances that may be lowering your credit score.
While you are getting your credit in order, it may be a good time to start cutting your expenses and saving for your new home’s down payment. When you have a good amount of money to put down for the down payment, you’ll likely get better interest rates on the mortgage. Since you are working with a small-budget, getting a smaller monthly payment is probably in your interest.
There are several government agencies that are helping lower budget families find a home they can own. In order to find these agencies, a simply online search can give you a number of options. You can also ask the same credit counselor that helped you straighten out your finances to point you in the right direction.
If you have a smaller income, the dream of owning a home is still possible with a low income mortgage. However, before you actually proceed in seeking such a loan make sure to review your finances. Find a home that fits your budget in order to avoid stressing your finances more than they can handle. Fix your credit report in order to increase your credit score. Remember, the higher your credit ratings the better mortgage terms you’ll be able to receive.
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Topics: Mortgages | Comments Off
MLA Style Citation:
Kell, Gregg "Effective Strategies On How To Successfully Obtain A Low Income Mortgage." Effective Strategies On How To Successfully Obtain A Low Income Mortgage. 27 Jun. 2010. uberarticles.com. 29 Dec 2014 <http://uberarticles.com/finance/mortgages/effective-strategies-on-how-to-successfully-obtain-a-low-income-mortgage/>.
APA Style Citation:
Kell, G (2010, June 27). Effective Strategies On How To Successfully Obtain A Low Income Mortgage. Retrieved December 29, 2014, from http://uberarticles.com/finance/mortgages/effective-strategies-on-how-to-successfully-obtain-a-low-income-mortgage/
Chicago Style Citation:
Kell, Gregg "Effective Strategies On How To Successfully Obtain A Low Income Mortgage" uberarticles.com. http://uberarticles.com/finance/mortgages/effective-strategies-on-how-to-successfully-obtain-a-low-income-mortgage/
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