One of the most held dreams by most residents of Seattle is to own a home. Entrepreneurs in real estate such as Sea Pac Homes have invested heavily to build houses for this ever growing market. Buying a house has its expenses which are sometimes prohibitive to many. Taking mortgage to fund home purchase has been the choice of those who can't afford cash purchase.
To avoid high rates of nonperforming loans, financiers are quite strictly on the people they finance to purchase homes. They do a thorough research on your finances before they give you the loan. Before you approach any lender for financing it's wise to understand clearly the minimum requirements for new homes Seattle loan.
Creditworthiness of a buyer is the first thing that a lender looks for as this will rate how good or bad one is with paying up their debts. The rate mostly ranges from 300 to 500. The lenders will have to use the past payments of the buyers and assess how and when they paid them. The pain comes to those who never paid these loans well enough because their credit score becomes low.
Normally the average credit score is about 650 which is not bad. You should start getting worried if your score does not go past the 620 mark since this is a bad score which will get very high interest rates if at all the mortgage is given. Make it above 720 and you are in the safe side where low rates will be charged. The rate depends on the capability of paying you have shown in the past.
An employed person who gets monthly wages has higher chances of getting financed because of the fact that he has a rather stable income which is predictable. A self employed on the other side his earnings will be widely fluctuating making it hard to measure his debt to income ratio (DTI). The rate of DTI is inversely proportional to the paying ability since it shows the amount of disposable income you have. The dream to move in ready homes Seattle will be dependent on your power to payback which should be reflected by a DTI of 45% and below.
The kind of security you are planning to use to secure the loan will determine the amount you get or if you get it. The Seattle new homes build by Sea Pac you are planning to buy will most likely be the collateral. The home will be valued to arrive at the loan to value ratio (LTV) used to determine the risk a lender is taking.
The lower the LTV, the higher the chances of buying homes in Seattle. The auction price for a low LTV homes will be at least be above the amount the lender is looking to get from you in the case of default. Higher LTV home attracts higher interested rates.
You are set be one of Sea Pac houses owners soon if you meet the requirements stated. Remember that you will only own the home fully when you are through paying the mortgage. You have finally lived your dream of owning a home.
To avoid high rates of nonperforming loans, financiers are quite strictly on the people they finance to purchase homes. They do a thorough research on your finances before they give you the loan. Before you approach any lender for financing it's wise to understand clearly the minimum requirements for new homes Seattle loan.
Creditworthiness of a buyer is the first thing that a lender looks for as this will rate how good or bad one is with paying up their debts. The rate mostly ranges from 300 to 500. The lenders will have to use the past payments of the buyers and assess how and when they paid them. The pain comes to those who never paid these loans well enough because their credit score becomes low.
Normally the average credit score is about 650 which is not bad. You should start getting worried if your score does not go past the 620 mark since this is a bad score which will get very high interest rates if at all the mortgage is given. Make it above 720 and you are in the safe side where low rates will be charged. The rate depends on the capability of paying you have shown in the past.
An employed person who gets monthly wages has higher chances of getting financed because of the fact that he has a rather stable income which is predictable. A self employed on the other side his earnings will be widely fluctuating making it hard to measure his debt to income ratio (DTI). The rate of DTI is inversely proportional to the paying ability since it shows the amount of disposable income you have. The dream to move in ready homes Seattle will be dependent on your power to payback which should be reflected by a DTI of 45% and below.
The kind of security you are planning to use to secure the loan will determine the amount you get or if you get it. The Seattle new homes build by Sea Pac you are planning to buy will most likely be the collateral. The home will be valued to arrive at the loan to value ratio (LTV) used to determine the risk a lender is taking.
The lower the LTV, the higher the chances of buying homes in Seattle. The auction price for a low LTV homes will be at least be above the amount the lender is looking to get from you in the case of default. Higher LTV home attracts higher interested rates.
You are set be one of Sea Pac houses owners soon if you meet the requirements stated. Remember that you will only own the home fully when you are through paying the mortgage. You have finally lived your dream of owning a home.
About the Author:
For the latest listings of Sea Pac homes, take a look at our affordable properties on the Web. See all the new homes Seattle has to offer right now at http://seapachomes.com.
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