Avoiding Problems with Your New Home LoanBy Karen Lawson
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Recent news includes frequent reports about non-standard home loans. Some homeowners are having difficulty making payments due to "exotic" mortgage loans that have features such as rapidly adjusting interest rates and negative amortization. If you're looking to buy a home, here are some tips for avoiding trouble.
Are You Ready to Buy a Home?There are compelling reasons for buying a home in today's market. Home values have decreased in many areas, and there may be tax benefits associated with homeownership. Two of the most essential criteria for buying a home are:
Evaluating your Credit and FinancesKnowing your credit score before shopping for a new home loan is essential. Generally, the lower your credit score, the more likely you'll be offered a mortgage through "sub prime" lending programs. It can be tempting to get a mortgage with a very low down payment and "no documentation," but this can lead to trouble. Here's why:
About the Author
Karen Lawson is a freelance writer with extensive experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno.
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