Houston Mortgage-Do you Qualify?
How to get a mortgage in Houston
For people who live in Houston or are considering relocating there, finding a mortgage may be important if considering purchasing a home or refinancing.
If you need a mortgage, there are several things you need to know about how to get a great deal.
Getting an affordable mortgage in the Houston area relies on a couple of things.
Firstly, you have to have a good mortgage broker and know who to ask, and second of all, you have to personally be in the position where you can qualify for a Houston mortgage loan.
Finding a mortgage broker in Houston is the first step but where does one look? It is important to ask around for recommendations of good brokers.
Ask your friends, ask your family, ask your coworkers, check out the Houston mortgage bankers association, and hunt around online on sites like Yelp or the Yellow Pages for lists of brokers.
Gathering names is not the only work you have to do to find Houston mortgage companies – it is very important that you check the brokers and companies out, even if they came recommended.
If you find any red flags then cross them off the list. It’s also important to interview the broker/s at the Houston mortgage company and determine what their fees are, how they communicate, and what the process of getting a Houston mortgage loan with them will entail.
After you have found someone to work with to find a mortgage in Houston, the next step is the process of getting that mortgage. Here is where you have to pay great attention.
There are some people who won’t qualify for a Texas mortgage and others who won’t be able to get the most affordable mortgage rates in Houston but there are things you can do to help you out.
One of the most important things to remember if you want to qualify for an affordable mortgage in Houston is that you should have excellent credit.
Not just good credit but excellent credit. If you have bad credit, you won’t get a mortgage and if you have good credit, your Houston mortgage rate may be slightly higher but if you have excellent credit you’ll get the best rates available.
If you don’t have great credit then consider waiting a while before taking out a mortgage in Houston, TX.
Pay off any debt you have including credit card debt, car loans and student loans (if you can) and remember that your credit will greatly improve if you have lines of credit that have been open for at least five years.
The next important thing that will get you affordable Houston mortgage rates is a steady employment history. If you have gaps in your employment history or you are not currently employed, you may find it difficult to qualify for a mortgage.
It may also not be wise to apply for a mortgage if you don’t have a job or your employment history is scattered.
Likewise, if you are self-employed, obtaining a mortgage may also be hard to do. Many self-employed people may more than enough money to be able to afford Houston mortgage rates, however, because their taxes are filed slightly differently, it can be hard.
Additionally, some self-employed people such as contractors may not demonstrate a steady employment history because these are jobs that can often be hard to come by in this economy. What else is important to help secure an affordable Houston mortgage?
Well, depending on the type of mortgage you are taking out and the cost of the home, you may need to have a significant amount of money to use as a down payment on the home. How much exactly? The general recommendation is 20% but there are loans that don’t require this much.
For example, if you are taking out your first mortgage, you might qualify for a first-time home buyer’s loan, which only requires a 3% down payment.
This type of mortgage is great for people who are young and just starting out. Another reason you might find it hard to qualify for a mortgage is if you are planning to take out a Houston mortgage refinance.
While a refinance is great for most people who took out mortgages when the rates were higher, there are some people who can’t refinance because they owe more on their home than it is worth. In this circumstance, a refinance is typically not possible.
However, if you are paying high rates on a home that you plan to live in for a while, you might want to look into the current Houston mortgage rates and refinance your home so that you don’t have to pay as much each month.
Just as you would when taking out a regular mortgage, when refinancing you also have to make sure you have a stellar credit history in order to qualify for the best rates.
What sorts of monthly payments are you looking for with your mortgage in Houston, Texas? While your mortgage broker will be able to help figure this out for you, there are some websites where you can plug in your monthly salary and bills and determine how much you can qualify for with a Houston mortgage calculator.
These aren’t always accurate but they can give you a good idea at what you should be looking at paying monthly. Finding an affordable Houston mortgage isn’t hard to do if you understand exactly what to do when looking for a mortgage.
Finding a reputable mortgage broker is essential to the process – a mortgage broker will have access to a wide range of lenders and will be able to find you the lowest rate possible for the type of loan you want to take out and the situation you are in.
When you decide that taking out a mortgage is something you really want to do, remember that it is the most important financial decision you will ever make.