Anyone looking to buy a home is bound to get some good deals with the current state of the real estate market. There are still so many home sellers in Tucson, AZ as opposed to buyers. Just like any other city, Mortgage Tucson also has its fair share of defaulters. This results in lenders becoming much more cautious when approving new mortgage loans. Below are some issues that you should watch out for if you intend to apply for a mortgage Tucson.
Lenders in Tucson are very particular with the credit history of borrowers. It is important that you check your credit history before going visiting a lender. There are online professional services that help potential borrowers check their credit score. The same services also outline all steps necessary in the improvement of your credit rating. It is not wise to assume that your credit score is excellent just because you pay all your bills on time. Something may escape your mind and you do not want surprises once you enter the loan office.
A few years back, mortgage lenders throughout the United States did not require successful borrowers to put down a down payment. However, this is no longer the case. Tucson lenders require at least 10 to 20 percent of the total home value as a down payment. As such, it is important to ensure you have this amount saved in a bank account. The lender will require a bank statement to verify the same. Low-income earners may have a rough time securing a lender since income determines the amount of money a borrower may get from a bank. Income becomes a critical factor in mortgage applications since the borrower has to show his/her capacity to make monthly payments as well as cater for extra costs such as regular maintenance, property taxes and upkeep supplies.
Employment history is also critical for home loan approval. Lenders tend to be careful with individuals who change their jobs frequently. Your loan approval may hit a snag unless you prove that your income improves considerable with each job change. Self-employed individuals who have fluctuating incomes may also have a rough time convincing lenders. Excessive debt or overextended credit is a major turnoff for Tucson lenders. You might have a significant monthly income, but if your debt-to-income ratio is more than 36 percent, no lender will touch you with a nine-foot pole. Market appraisals are an important part of the mortgage approval process in Tucson. When home values drop, homeowners who already have a home loan usually walk away from these agreements since the current market value is way below the loan amount. First time home loan applicants are not an attractive option to lenders.
Buying your own house is a dream that we all foster. And to fulfill this dream, you might have to get your finances in order and apply for a mortgage loan. Mortgage loan in Tuscon is an excellent option for homeowners who do not wish to continue paying rent.