Generally speaking, paying rent is paying someone else's mortgage. This is a tremendous financial benefit to whoever owns the property which is being rented, yet there's little or no advantage to the renter.
GLEN ELLYN, Ill., June 15, 2018 (Newswire.com) - "Those renting are effectively throwing away hundreds of dollars each month," says Daniel A. Yelovich, a licensed mortgage loan officer and father of two from Glen Ellyn, Illinois. "This is money which could help to secure a better financial future for them, rather than their landlord."
According to Yelovich, buying a home is often more straightforward than people are led to believe. "Banks want to give you a mortgage!" says the industry expert, enthusiastically. "They just need to prove your ability to repay, and confirm that there's a high likelihood that you'll pay back what you owe."
"Some banks will work with scores as low as 580, but they'll look closely at why the score is so low,"
Daniel A. Yelovich, Mortgage Loan Officer
When an individual, family, or group seeks to acquire a mortgage, a bank will explore three main areas of qualification. Yelovich explains, "These are income, credit, and down payment. If you're strong in all three areas, it's likely that a bank will grant a mortgage without difficulty and within a short space of time."
"If you're weak in two or more areas, however," he continues, "the odds are low that a loan will be secured right away, although the situation can often be improved over time."
In this instance, Yelovich explains that income comes first. "To show an ability to repay, the starting point is income," he states. "A bank wants to know that any income will be steady. They usually require at least two years in the same line of work to establish what's deemed a steady income."
If additional income is required, banks will often recognize other sources in order to grant a mortgage. The most common, according to Yelovich, is an additional co-signer who adds their name to the agreement as a guarantor.
Once income has been established, any bank will carry out a number of credit checks and examinations. "Banks, in general, want to see credit scores of 640 and above, with scores over 740 being preferable," Yelovich reveals. "Some banks will work with scores as low as 580, but they'll look closely at why the score is so low," he continues.
If credit proves to be a challenge, Yelovich points out that a wealth of information exists online about how best to improve the situation. "There are also agencies out there who will assist, albeit for a fee," he adds.
Third on the mortgage loan officer's list is down payment. "The greater the down payment, the more the borrower shows an ability to save and demonstrate the commitment of their own funds to the transaction," he suggests. From a bank's perspective, the more someone has invested in a property, the less likely they are to walk away from it if circumstances become difficult financially.
Yelovich highlights that the amount needed as down payment will vary. "Banks love it when there's 20 percent or more of a purchase price, although there are special programs that allow for down payments which are much lower," he adds. "In particular, if you're a military veteran, there are loans available for 0 percent down, while some first-time homebuyer programs require just 3 percent upfront."
"Quit paying someone else's mortgage," says Yelovich, wrapping up. "Instead, call a mortgage loan professional today to explore your particular situation in more detail."
Daniel A. Yelovich has been a licensed mortgage loan officer for over 20 years. He currently resides in Glen Ellyn, Illinois with his wife, Janet, and two children, Rebecca and Adam.
Media Contact:
Web Presence, LLC
Eric Blankenship
786-332-6554
Source: Web Presence LLC
Share: