Zero Down Mortgage Tips On Getting Approved

Zero Down Mortgage - Tips on​ Getting Approved
Zero down home financing is​ about getting rid of​ the​ obstacle of​ closing costs .​
You can trade in​ your rent payment for a​ house payment without paying thousands at​ closing .​
Before you​ start enjoying the​ benefits of​ home ownership,​ make sure you​ follow these tips to​ get approved for the​ best rates.
Check Your Credit Report
Annually checking your credit report is​ a​ good idea,​ especially if​ you​ are applying for new credit .​
Make sure that all your information is​ correct .​
If there are mistakes,​ get them fixed .​
Otherwise,​ you​ could be paying thousands in​ interest charges.
While looking at​ your accounts,​ keep your debt to​ a​ minimum .​
a​ high debt to​ income ratio can disqualify your for a​ zero down loan .​
Also make sure the​ debt you​ do have is​ spread over multiple accounts rather than maxing out one account.
Increase Your Cash Reserves
Cash reserves settle lender’s nerves .​
So you​ might consider liquidating stocks or​ other assets when applying for a​ mortgage .​
At a​ minimum,​ lenders like to​ see at​ least two month’s worth of​ payments as​ liquid assets .​
You do have the​ option of​ reinvesting those funds after the​ loan has been completed.
Look For the​ Right Lender
Not all lenders will look at​ your application in​ the​ same way .​
Each company has their own lending criteria .​
So start your search by requesting loan estimates from several financial institutions .​
You can start with a​ mortgage broker site or​ go directly to​ the​ lender.
There are several definitions of​ zero down home financing .​
It could mean no down payment or​ a​ rolled in​ closing costs .​
There are even home loans with no closing costs .​
Check loan quotes and their fine print to​ find the​ financing that best meets your financial goals.
Always Other Options
There are other options to​ avoid a​ down payment .​
One option is​ to​ get two mortgages to​ finance your home’s purchase .​
The other option is​ to​ put money down,​ but then turn around and take out a​ home equity loan .​
This option usually helps you​ avoid paying PMI.
Don’t rush into any mortgage .​
Research the​ numbers and choose what works best for you​ and your budget.

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