one of the most expensive purchases that they will ever make.
Los Angeles-Long Beach, CA (PRWEB) May 15, 2016
National Debt Relief recently shared in an article published April 7, 2016 some pointers consumers can look into to help assess if they are qualified for a house loan. The article titled “4 Signs You Are Not Financially Fit To Buy A House” helps people understand if their finances can accommodate extra monthly payment for a house.
The article starts off by explaining that homeownership remains to be a dream for most Americans but it remains to be one of the most expensive purchases that they will ever make. As it would set them back hundreds of thousands of dollars, most people are relegated to taking out a mortgage loan that will be repaying in as long as 3 decades.
One way consumers will know if they are ready for a mortgage loan is when they take a look at their credit score. A low score can signify that their financial standing is not yet ready for a house loan. A low score is an indicator that the finances is not yet ready and it will only yield high interest rates from lenders if ever they approve a loan with a low score.
The article also shares that consumers who does not have enough savings might not be in a good position to take out a mortgage loan. This is because consumers would still be required to put in their equity for the property and they run the risk of paying a private mortgage insurance if they put in less than 20% of the loan amount as equity.
If consumers are looking at an unstable income, they might want to rethink a mortgage loan at that particular point in their life. The article explains that a house loan will take decades to pay off and that will require a long financial commitment and a stable income is a prerequisite in meeting this obligation.
To read the full article, click https://www.nationaldebtrelief.com/4-signs-not-financially-fit-buy-house/