Buying a home should not be a frustrating process.
Oakbrook Terrace, IL (PRWEB) November 01, 2013
As the housing market continues to rise with interest rates remaining attractive first-time homebuyers are seeking interest to purchase properties. Peoples Home Equity, an Illinois-based lending company is informing their prospective mortgage applicants that buying a home is an easy and enjoyable process if well prepared, which is instilling confidence with walk in first-time home buyers.
Buying a home should not be a frustrating process. To be prepared and confident in the process, a mortgage applicant should know, roughly, what their credit score is before applying for a home loan. The difference between good credit score and an unappealing one is the interest rate offered to a mortgage applicant. All home buyers and investors want the lowest interest rate possible; the best way to ensure a low monthly payment on a mortgage is to apply for a loan when one has an attractive credit score. To reach good credit score the individual must prove that they paid, on time, a range of financial obligations. If one has missed a few large and important payments in the past, such as a car payment or credit card minimum payment then credit risk will present itself causing the lender to probably raise the interest rate.
Once the credit check process is completed the applicant should know their mortgage rate and amount they may borrow. From this point he or she can filter their property and judge how much to spend in relation to a comfortable monthly payment. People Home Equity will only lend the amount they believe is easy for the homebuyer to prepay. A good rule of thumb is to find a home no more expensive than the homebuyer's annual income times three. This way the homebuyer is not purchasing something that is not difficult to afford nor is there a great possibility of a large loss of equity in a market down cycle. With national foreclosure rates declining 39% from 2012 to 2013, according to CoreLogic, all lenders are eager to hold the current market trend positive. Keeping lien holders safely away from slipping into another national savings and loan crisis is a priority now given potential losses and current government regulation.
Peoples Home Equity offers a number of loan calculators on their website to assist potential applicants in getting their finances in order before applying for a home loan. A popular calculator is the “How Much Do I Have to Earn?” tool which informs users how much money they have to earn to afford the house payment and accompanying expenses. To begin using these useful tools please visit PeoplesHomeEquity.com and click on the “loan calculators” tab.