8 Tips to have a Good Mortgage in 2018
1) Make a Small or No Down Payment
Most home buyers believe that the minimum down payment needed is 20 percent. However, there are some loan programs that don’t require a down payment at all or as small as a 3-3.5 percent down payment. The Department of Veterans Affairs allows zero-down VA mortgages for veterans, active-duty service members, and other members in regard to certain National Guard and Reserves who are qualified. FHA allows down payments as small as 3.5 percent while a few other lenders allow 3 percent down payments with private mortgage insurance.
2) With FHA, you can get a loan with imperfect credit
The following all depends on your lender. A credit score of 580 or higher is needed in order to get an FHA-insured mortgage with a down payment as low as 3.5 percent. If your credit score is between 500 and 579, a down payment of at least 10 percent gets an FHA mortgage.
3) Can save by Refinancing into a 15-Year Loan
Rates are expected to rise in 2018. There are two ways how refinancing into a 15-year mortgage can save money. 15-year loans have a lower interest rate than 30-year loans and you pay an interest over a shorter period of time.
4) Only Borrow as much as you can afford to Repay
Live within your boundaries! The majority of people estimate that their income will be rising so they stretch to make their monthly payments.
5) Zero-Down VA Loan
The key feature of Veteran Loans is that they can be used to buy a primary home with no down payment.
6) Cash-Out Refi might be your Best Choice
It is important to compare rates on a mortgage refinance. Cash out Refinances are beginning to become popular again because home values have climbed near their pre-recession peaks in many markets.
7) Refinance into a VA Loan
Want to refinance from a conventional mortgage into a VA loan? You possibly can! However, you must be eligible for a VA-guaranteed mortgage.
8) Be Patient during Underwriting
It is very important that you be patient during the time period between applying for a mortgage and closing on a loan. You may think this is an easy task, but is difficult in practice, especially if you are a first time home buyer. Be wise!
