Tips on Increasing Your Chance of Landing a Mortgage

Today’s mortgage rates are the utmost come-on for would-be homebuyers.

In its Primary Mortgage Market Survey released last Thursday, Freddie Mac reported that the 15-year fixed mortgage rate averaged a new all-time record low at 3.13%. Meanwhile, the 30-year fixed-rate mortgage averaged at 3.88%, the lowest rate in history.

“With these historically low rates and declining house prices, the typical family had more than double the income needed to purchase a median-priced home in January,” Frank Nothaft, vice president and chief economist of Freddie Mac, said in a statement published on Freddie Mac website.

However, despite the fact that mortgage rates are at all-time low and home prices are declining, would-be homebuyers are frustrated as they cannot qualify for a mortgage.

In the article “Boost your odds of landing a mortgage,” CNN Money gives out tips on how to increase one’s chance of landing a mortgage.

“For some would-be buyers and refinancers, today’s mortgage rates are the ultimate tease. While ads tout the lowest rates in history (recently under 4% for a 30-year fixed), qualifying for a mortgage that cheap can be an exercise in frustration or futility,” CNN Money reports.

Here are CNN Money tips on how to land a mortgage in today’s market:

If your problem is that you are self-employed, chance of landing a mortgage is higher, CNN Money says, if you give up deductions.

Todd Huettner, Denver mortgage broker, told CNN Money, that you can boost your odds of landing a mortgage by forgoing or deferring deductions such as acquiring new equipment or travelling.

Another hurdle in landing a mortgage is that your credit is not that clean. Huettner continued that if your credit is blemished due to bad luck such as job loss or illness, instead of bad habits, mortgage lender might make an exception.

If your credit is not that clean, CNN Money also recommends fixing your credit, explaining your credit or getting a Federal Housing Administration (FHA) loan.

Whether you are a first-time home buyer, first-time home seller, empty nester, thinking about selling a home or buying a home, do contact the Guldi Real Estate Group. In Southern Maryland, the Guldi Group is the number one real estate team.