Monday, July 25, 2011

4 Tips for Qualifying for a Lexington Home Loan

Buying a home in Lexington, MA can be a very exciting time as you consider either relocating to this charming town or moving to the Lexington home of your dreams! It’s fun to envision what your options are for homes in Lexington and what life will be like once you settle into your new home.


Having lived and worked as a Lexington Real Estate agent for years, I enjoy showing interested buyers what makes Lexington such a great choice for settling down! Our active community, historic appeal, beautiful homes and our close proximity to the metropolis of Boston gives Lexington a unique appeal and creates a well rounded lifestyle for Lexington residents.


If you are considering buying a Lexington home and are a first time home buyer, or have simply been out of the Lexington Real Estate market for some time; there are a few changes that have taken place over the past year in real estate that you’ll want to know. The main thing is that lenders have tightened the reins on those who qualify for a mortgage loan. They feel that being more careful with who is able to buy a home will help the national housing market on its road to recovery.


These new regulations, however, are not meant to discourage you from buying a home in Lexington! You are at a prime point to buy a Lexington home as home prices and mortgage rates are at an all time low and I would love to help you throughout the entire home buying experience. You can navigate your way through the loan qualification process by taking note of these four tips!


- Have the right credit score- Credit scores are moving to the forefront of being approved for a Lexington home loan. Most lenders are expecting a credit score of 600+ even for FHA loans. A good credit score will not only help you qualify for a home loan, but can lower your interest rate, which can save you thousands of dollars in the long run.


- Shop around- The interest rate is important, but there are other costs to consider such as discount points and even the type of mortgage loan. When shopping for best rates, compare various combinations of discount points and loan types. Your Lexington Real Estate agent can help you decide on the best option.


- Know your borrowing limit- If you’re not sure how much you want to borrow, a good rule of thumb is to look at the Federal Housing Administration requirements. FHA will limit mortgage payments at 31% of gross monthly income before taxes for most buyers. This can help ensure that you’re not getting in too far over your head. If I’ve learned anything over the past few years, it’s to play it safe in the housing market.


- Consider a No-Closing-Cost Loan- If you have positive equity, but are lower on cash up front, you do have an option to choose a no-closing cost loan. This simply means that you’ll have a slightly higher rate, but the closing costs will be paid over time instead of up front.


Armed with these four tips, you will be well on your way for qualifying for a home loan! As always, I’m here to help answer any questions you may have about buying a home in Lexington. I would enjoy showing you some of the homes that are currently available in Lexington and guide you through each step of buying a home.


Please contact me anytime to get started! I look forward to hearing from you!


3 comments:

  1. Great information as always. I think many people do have a misconception that a short sale won’t hurt your credit score as much as a foreclosure would, and I’m glad you addressed that here. I think it is promising that someone could be eligible to buy a home.
    Mortgage Insurance

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  2. Thanks for the great information about buying a home after short sale or foreclosure. It’s a tricky thing to understand the different guidelines and it’s just as tricky finding the lender who will take on more risk than the others.


    How to Pay Less on your Mortgage

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  3. As rates and terms of home loans vary greatly from lender to lender, shopping around and comparing quotes is certainly key to getting the best financing deal. Finding a lender who offers the lowest interest rates, lending fees, closing costs and other benefits can potentially save you thousands of dollars over the full term of your loan.

    Regards,
    Chris from homeloans-sa.co.za

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