Essential Questions Your Financial Advisor Should Answer
When you are looking to buy a house, one of the most important decisions you will make is what type of mortgage to use. There are many different types of mortgages available today and it can be daunting trying to figure out which one is right for you. To help with this process called property equity release service, we have compiled 10 questions that your financial advisor should answer before advising on a mortgage for you.
No credit? Mortgage can be a difficult process even if you have good credit. If your financial situation is complicated or you don’t currently have any income, then it may be harder to get approved for the best mortgage rate and terms that fit your needs. In these cases, talk with an experienced professional who has access to special programs designed just for people in these situations.
Your advisor should help explain all of your options including government assistance programs like FHA loans (Federal Housing Administration) and USDA Rural Development loans which are available only through licensed lenders directly from the federal government. These types of mortgages typically offer ease-of-use benefits such as flexible guidelines on debt ratio calculations plus no down payment required so they are great alternatives for borrowers without much savings or income.
If you have credit issues, talk with your advisor about repairing it before applying for a mortgage. It may take time to fix poor credit and there are many companies that claim they can help so do research and then decide if the investment is worth it in the long-term versus just waiting until after buying a house to repair your scores. For example, getting an authorized user co-signer on one of their accounts could be helpful but don’t add someone like an ex who will only hurt your score by doing this. If you do get approved for a loan despite having bad credit please realize that most lenders charge higher interest rates as well as other fees which can make owning more expensive than renting.