Maria DiCarlo - Wakefield, MA Real Estate, Reading, MA Real Estate


Do you dream about owning your own house? Has the idea of living in a property that adds to your personal equity started to appeal to you? If so, you're in good company. Each year, millions of Americans buy a house. Many of these homes are purchased with a home loan.

How you could get the right home loan

To protect themselves against loan defaults, lenders prefer to work with borrowers who have a history of being financially responsible. Doing so helps more than lenders.It can keep an entire economy from contracting, similar to the debacle that happened to cause the Great Recession.

Knowing what lenders look for in borrowers can help you to secure a home loan. To begin,your credit history is going to get reviewed while you're trying to secure a home loan. The amount of debt that you have and your history of making minimum or higher payments on these debts is going to be reviewed.

Your income, including income from second jobs that you work, and your spouse's income will also get looked into. Landing a higher paying job helps when it comes to securing a home loan. But, don't just increase your income.

Take advantage of military home loans if you served the country as a service member.If you work for a bank, you could get lower interest rates. Check with your employer to see how much you could save. If you don't work for a bank, consider securing a home loan through your current bank.

Opt for lower monthly mortgage payments

It could improve your chances of getting approved for a mortgage. It could also help you to save on interest payments. In addition to choosing a mortgage that has a lower interest rate, to secure a home loan:

Go after home loans that require lower monthly mortgage payments. Lower interest rates and military home loans are just two ways to achieve this. Applying for a home loan when the economy is recovering is another path to lower monthly mortgage payments. After feds start raising interest rates and the economy becomes stronger, mortgages generally rise.

Pay off as much debt as possible before you apply for a home loan. For example, you could pay off your auto loans and furniture. You can also pay off personal loans that you took out before you apply for a  mortgage.

Increase your liquidity. You can do this by investing more in stocks, cash savings and bonds. The value of your current home can also improve your liquidity. The value of a business that you own is another way to improve liquidity.

Get financial statements together to present to a lender. Items to get include income tax returns, pay stubs, investment account statements and business income, if you own a business. This includes an at home business. Also, get exiting loans and other debts together to present to lenders. The amount and type of debt may be sufficient, depending on the lender that you work with.




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