King Mortgage Rates

Mortgages in King County

If you have paid attention to the news about mortgages over the past few years, you may have heard that it is harder than ever to qualify for a mortgage. Unfortunately in the past, banks were giving mortgage loans to candidates that could not afford the house payment to begin with. These loans, called sub-prime loans, ended up in foreclosure and a lot of headaches for the financial sector. To further avoid this, banks have instituted rigorous standards for new mortgage candidates. First, you must have good credit. Average or even above average credit ratings are simply not good enough to qualify for a mortgage any more. If your credit score is low, you need to work to repair it by dealing with any outstanding bills, paying your credit cards and loans on time, and correcting any errors. The other requirement for being a desirable loan candidate is a low debt-to-income ratio. This is determined by taking all your monthly debt payments and dividing them by your gross monthly income. Some banks only require that you are below 40% while others require less than 30%. If your ratio is higher than both of those, you need to reduce your outstanding debt before you apply for your mortgage.

FHA Mortgage Loans in King County

In most FHA mortgage loans, a requirement to close is seller concessions. These are very common, but what are they? This means that when you are buying a home through the FHA loan program, the seller must agree to the terms of the loan. This usually means that the seller has to pay closing costs out of the loan proceeds. It could also mean, in the case of the down payment assistance program, that the seller has to take a lower sale price in order to sell the home. If the seller does not agree, the FHA loan cannot go through. If your seller does not agree, do not worry. There are a large number of sellers that will do just about anything to get out from under their homes. Keep shopping and be up front about the fact that you are getting your mortgage through the FHA. It’s better to let the seller know right away than go through the bidding process and get burned.

King County Loan Modifications

When you are considering a loan modification, there are a few things you can do to help the process move along faster. First, gather all the necessary information that your lender will want. This typically consists of your income information as well as all your monthly bills. This will help the lender determine your ability to pay for your home. Be honest with your lender and explain why you are late or behind in your payments. Telling the lender exactly what is going on in your financial situation will help them make the decision that is best for you. If the lender determines that even after all the assistance they can offer you will still be unable to pay your mortgage, they may offer other solutions such as a short sale.