These days one of the biggest impediments to closing a real estate sale can be the buyer’s ability to get a mortgage.
Here are some tips for anyone who hopes to land a loan:
- Turn to the government. The biggest source of loans these days is the Federal Housing Administration (FHA) and the Veterans Administration (VA). These programs accept borrowers with lower credit scores and allow them to put down as little as 3.5 percent of the purchase price.
- Document, document, document. Borrowers will need bank statements, brokerage statements, W-2 forms and tax returns.
- Boost credit scores. Borrowers should avoid having more than one-third of their maximum borrowing capacity outstanding on one credit card. If necessary, rotate the debt among several cards. More on how to improve credit scores.
- Work your connections. Comparison shopping is easy online, but if borrowers have an established relationship with a local bank, they should try that lender first.
Post about comparing loan programs.
NOTE: The above is for informational purposes only and may be subject to errors and omissions, and changes in regulation. For details always contact your trusted lender.
SOURCE: BusinessWeek.com
