When an individual, family, or group looks to acquire a mortgage, a bank will primarily explore income, credit, and down payment.
GLEN ELLYN, Ill., July 3, 2018 (Newswire.com) - "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," explains Daniel A. Yelovich, a licensed mortgage loan officer and father of two from Glen Ellyn, Illinois.
Yelovich believes that paying rent is merely paying someone else's mortgage. "This," he says, "is a tremendous financial benefit to whoever owns the property which is being rented, yet there's little or no advantage to the renter."
Yelovich is keen to stress that, contrary to popular belief, buying a home is often quite straightforward.
"Banks want to give you a mortgage!" exclaims the industry expert. "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."
Yelovich explains that to show an ability to repay, the starting point is income. Once this has been established, banks will carry out a series of credit checks and examinations. "Banks want to see credit scores of 640 and above," he suggests, further adding that scores over 740 are preferable.
Further to income and credit, third on the mortgage loan officer's list of points to address 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," Yelovich explains.
Broadly speaking, from a lender's perspective, the more an individual or group has invested in a property, the less likely they are to walk away from it if their circumstances become tough financially.
So how much is required for a down payment? "Banks love it when there's 20% or more of the purchase price," Yelovich reveals.
"With that said, there are special programs which allow for much lower down payments," he adds. "In particular, if you're a military veteran, there are loans available for 0% down, while some first-time homebuyer programs require just 3% upfront."
"Quit paying someone else's mortgage," suggests Yelovich, wrapping up. "Instead, call a mortgage loan professional today to explore your particular situation in more detail."
A licensed mortgage loan officer for over 20 years, Daniel A. Yelovich currently resides in Glen Ellyn, Illinois with his wife, Janet, and two children, Rebecca and Adam.
To connect with Daniel Yelovich, you can connect with him on Linkedin.
Media Contact:
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Eric Blankenship
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Source: Web Presence, LLC
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