When considering your mortgage, lenders look at a variety of factors, including your ability
and willingness to repay the loan.
- Your ability to repay is verified by your current employment and total income.
- Your willingness to repay is closely related to how you've fulfilled previous financial
commitments. This is why lenders place such an emphasis on your credit report.
It is important to remember that there are no rules carved in stone. Each applicant is
handled on a case-by-case basis. So even if you come up a little short in one area, perhaps
one of your stronger points will make up for the weak one.
Low Down Payment Mortgages
Even if you do not have a lot of money to use as a down payment, you still may be able to
purchase a home. More and more borrowers are taking advantage of low down payment mortgages
and becoming homeowners with as little as 5 percent down. With these loans, however, you may
be required to carry Private Mortgage Insurance (PMI).
Tip
For more information on how you can take advantage of the benefits of a low down payment
home loan with mortgage insurance, contact your lender or real estate agent.