Aspects to Consider Before Applying for a Mortgage

Clearpath Lending specialists indicate that before requesting a mortgage from their lender, those interested in taking the next step should consider the following points:

1. Have 20% of the value of the house before requesting a mortgage

If you want to ask for a mortgage to buy a house, you need to have saved at least around 20% of the price of the house. It is difficult for financial entities to grant 100% of the mortgage.

Clearpath Lending specialists give an example, if the house is valued at 200,000 dollars, you will have to have a minimum of $40,000 for the mortgage lender to assess whether to grant you a loan or not. In this case, the mortgage loan would reach $160,000.

In addition, you have to take into account the expenses associated with buying a home. These expenses, which include both closing costs, notary and various taxes, vary widely, but on average they can reach around 10% of the value of the home.

2. Get 80% of the appraisal value or the sale price when requesting a mortgage

Financial entities such as traditional banks or private lenders usually grant 80% of the lower value between the appraisal price or the sale price of the property. This rule applies to the first home, since in the case of a second home it can go down to 60% of the two variables.

For example, if the sale price of the home is $210,000, and the appraisal price is $200,000, the lender will offer you 80% of $200,000. That is, your mortgage will be 160,000 dollars. Therefore, it is necessary that, as ClearPath Lending mortgage experts, who have a 4.9 ranking on Zillow, explained in the first point, you have at least 20% of the cost saved. Otherwise, it is more than likely that they will not grant you the mortgage.

3. Dedicate 30% of your income to pay the mortgage

There is a common parameter to measure the risk that a person assumes when buying a home, and that is the 30% rule. Typically, Clearpath Lending specialists indicate that it is recommended not to spend more than a third (30%) of the income to pay the mortgage.

4. About Clearpath Lending

ClearPath Lending is a mortgage lender company offering home loan programs.