5 Tips to make obtaining Mortgage simple in 2011

Home prices will be dropping as we proceed in 2011. For many buyers it is making more sense to rent then to buy. During 2010 the rent rates have increased on an average by 3% only. This was mostly due the reason of many home owners looking for places to live after foreclosing of their homes. Mark Zandi, the chief economist at Moody's thinks that this trend will reverse in 2011.

15-20% drops in the pricing of the houses are expected in the year 2011. This will really increase the number of people applying for mortgages to get houses. Below are some tips to make sure that you are ready and prepared to apply for mortgage when the time comes.

Protect your Credit Score Many things have changes in the Mortgage market but one thing still stays the same. The higher and better your credit score is the less amount of interest you will have to pay. If your score is below 660 you can be stuck paying really high rates. What you want to maintain is a score of over 700. Make sure to get a credit report and see if all your previous debt are all paid for and you do not have something on your credit report that you are unaware of. Do not apply for new loans or credits card right now so that your credit has time to recover before applying for mortgage. Contact Supreme Lending now to learn more ways to improve your credit score.

Know your limits Make sure you stay in range of how much debt you can take on. FHA has a limit of the total debt payment to 43% of your monthly income. So make sure you use the FHA limits as a guide and calculate how much of a house you can afford.

Save for Closing Costs and Down payment Any type of mortgage load you are interested in it is a good to have a good amount to cover the down payment and the closing costs. Most mortgage lenders will want you to place 10% down payment of the price of the home. For those who have really good credit rating FHA only requires 3.5% down payment or equity. And if you qualify for the Veterans loan than you might not have to put anything down.

Build a Good Savings Account Start saving and have funds in your savings account.Money in your account shows the lenders that you can comfortably afford an home and are not living paycheck to paycheck. If you do not have any savings then start saving and have atleast the amount of 2 mortgage payments saved.

Behind on your house payments? If you are behind on your house payments talk with your financial advisors or mortgage professionals now before you waste any more time. They should be able to assist you.