Real Estate Financing - Secrets on How to Qualify For Real Estate Financing
After you have found the property you want, you probably will have to get financing, unless you are rich and have thousands of dollars under your pillow. Real Estate financing can be a tricky thing to get for the average buyer.
One of the first things you need to do is get your credit report. You need to know what your credit scores are in order to get the best financing. If you have poor credit you can still get real estate financing. You need to know where you stand with your finances in order to know how to proceed.
If you have good credit and haven’t been more then thirty days late with a couple of your bill then you have a good shot at getting a conventional or government (FHA) mortgage. Conventional and government mortgages will give you the lowest rates, fees, and payments. The better your credit scores the better your terms will be.
If your credit is not as ideal as it could be, you have a couple of late payments and a collection or two, with a little explaining you might be able to qualify for a conventional mortgage. Chances are if you don’t qualify for a conventional mortgage, you may qualify for a “sub-prime” mortgage.
A “sub-prime” mortgage is for people with less then perfect credit. They charge higher rates and fees because of the increased risks associated with someone with weak credit. Look for an agent that specializes in “sub-prime” mortgages, you will pay more but you can get your property.
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