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Finding a Mortgage

Updated on November 6, 2016

Home Mortgage

Buying a Home

Buyers searching for a traditional mortgage may wonder can I buy a home while on a Debt Management Plan. Circumstances are different for every individual. However, getting a loan guaranteed by the Federal Housing Administration, VA loan, Fannie Mae or Freddie Mac can be difficult but not impossible. Since the DMP is parallel to a Chapter 13, judgment a party is only eligible after 4 years for a loan from one of the above lending bodies.

What does Debt management do?

The process of DMP works to place a debtor on solid financial footing, lifting them from overwhelming debt through a steady payment system to creditors. This is a significant step for debtors to take. Debt Management should be considered thoroughly, since it involves 3 to 5 years of financial commitment and interferes with getting a home through normal channels of lending.

Chances of Getting a Mortgage

The Debt Management Plan obligates a portion of your money for at least 2 to 5 years, dissolving debt owed to creditors. This agreement between you and creditors and a low credit score prevents a conventional home loan. Payments are listed on the credit report each month. A weak financial history will not make a person on the DMP a desirable candidate for a home mortgage, but as always, it depends upon the lender. It is difficult for a person in a difficult financial relationship to borrow money.

A person might obtain a loan from unconventional sources but bad credit hampers the process. It also makes good deals difficult. A loan is possible but it is an arduous process and depends heavily upon the lender. DMP does not cause problems the debt does. Once the debt is paid, a credit rate is straight and people stand a better chance of obtaining a mortgage. However, a guaranteed loan from any governmental agency is not possible. Most lenders require deposits but when the borrower is on a Debt Management Plan, interest rates given by lenders can reach very high levels.

Options:

It is hard to have extra money when going through DMP and debts unpaid or in arrears makes lenders shy away from lending money. It is best if a person in debt concentrate on paying off creditors and rebuilding financial stability. Get out of debt. Although payments are visible to lenders for at least six years with a nice down payment and financial solvency a loan is possible.

If a person is unwilling to wait out the debt period there are alternatives to mainstream lenders but some are risky. Strenuous interest rates may make it difficult to maintain the DMP while making high interest mortgage payments. Down payment request may also be excessive with difficult contract obligations. Saving if possible during the DMP period may be wiser than extending debt obligations.


Mortgage for a home

Debt v/s No Debt

Many people have been pushed out of the home buying market. In the struggle to regain footage it is important not to get sucked in by predatory lenders. With time a little belt tightening and improvement to the economy, many things, including reasonable loans will improve. Borrowers must not leap into debt for the sake of debt. Following the advice of a few reputable financial counselors would be wise in the present economy.

Consumers are being convinced they should go into debt for every little purchase; but if you take time and patience with your finances no matter how small you will discover you can purchase many things with cash and keep your family free of debt for the most part.

In the present market it is even possible to pay cash for a home but you must search seriously in the same common sense spots the mortgage brokers look. The key word here is use plain old horse sense. Think the way people thought when they had nothing and this economic down turn which has proved disastrous for many can be survived.

Mortgage Lenders

In a changing world lenders understand home owner need a company they can depend on. In the home mortgage lending business the company helps homeowners every day accomplish their dreams. They refinance their homes for whatever purpose they choose, money for college, and a lifelong dream idea or to simply consolidate bills. These are just a few of the items we finance for our customers. Our lending agents sit down and help you analyze loan information so you have a thorough understanding of the loan process.

A Home Mortgage is a big responsibility. Purchasing a comfortable home for your family takes planning. Mortgage investments are loaned at a percentage rate comparable to the open market. Whether your mortgage investment is a small cottage or a major business structure there are lending institutions to do business with.

Purchasing a home is a major accomplishment and mortgage companies are in the business of lending you money. Offering 10, 15, or 30 year mortgages; these are only a few of the products. A loan can packaged that is inline with your needs.

You buy a home with great consideration and decorate it with care. You hope your family will dwell comfortably in it. You want to borrow mortgage money at a rate you can continue to afford. Paying off an investment in your home is an important part of the security you want your family to have.

Loan officers make sure you understand the terms of the mortgage, the interest rate; they explain the monthly payments and give you the exact cost of principal and interest. Explain options available to you, this includes; insurance and the cost of taxes. Good companies offer a complete explanation package with no surprises.

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